In a Time of Rapidly Rising Transportation Costs, Microsoft Dynamics AX’s Supply Chain Features Take on Added Significance

With truckers around the world chafing at rapidly-rising diesel costs, and some even threatening strikes, it's becoming critical for manufacturers and suppliers to understand and optimize their supply chains.

Dr. Karl Manrodt, associate professor at Georgia Southern University, and Elani Metros, Microsoft Dynamics AX consultant with Vis.Align, a CDC Global Services Co., recently presented a Webcast that examined the implications of economic uncertainty around manufacturing, distribution and transportation. While Dr. Manrodt outlined his supply chain research and the ways that companies can - and should - optimize their supply chains through the implementation of commercial software, Ms. Metros said Dynamics AX is "the ace in the hole" ERP [enterprise resource planning] system because of its native integration, reporting and business intelligence capabilities.

Dr. Manrodt said that through a number of converging factors - cost reduction requirements, product commoditization, mergers and acquisitions, globalization, the rapid advances in technology - professional lives are changing dramatically. Manufacturers who deal with complex supply chains - three or four companies working together to reach a customer - are particularly vulnerable.

The question facing many manufacturers, according to Dr. Manrodt, is how to deal with that uncertainty. He points to three specific areas companies can focus on to get a handle on changing times:

1. supply chain optimization,
2. the creation of metrics to measure success and
3. enablement through technology.

"Times right now are tough," said Dr. Manrodt. "When times get tough is when we really need to get tough, even though it might be counter-intuitive. We have to leverage functional areas to get the greatest leverage. We have to re-think supply chains, technology and the knowledge base of ...