How Far Can Microsoft Take Dynamics AX in Supply Chain Execution This Year?

As more companies strive to improve their order management processes and overall supply chain operability, both Warehouse Management Systems (WMS) and Transportation Management Systems (TMS) have gained traction in the supply chain execution (SCE) space. Comprised of execution-oriented applications, SCE basically controls supply chain task flow via procurement, fulfillment, warehousing, and transportation. 

According to corporate vice president of Microsoft Dynamics ERP R&D Hal Howard, speaking at Convergence 2013, Dynamics AX customers will soon gain more warehousing and transportation capabilities. These additions will come as part of the Dynamics AX 2012 update later this year, and will be followed by a major release in 2014. Customers looking for deeper warehousing functionality (including RFID capabilities), demand planning, shared services, accounting and budget planning, and mobile apps for both phone and tablet (including POS), will benefit from this year's software update.

Simon Ellis, practice director at IDC Manufacturing Insights in Framingham, Mass., believes Microsoft has considerable ground to make up in supply chain management, but its technology stack may hold the key to moving forward.

"I view Microsoft as somewhat of a lightweight in the supply chain management space," says Ellis, noting that the vendor's solutions are appealing to smaller manufacturers that are looking for quick and easy solutions, or with simple requirements. "Overall," Ellis adds, "Microsoft is not a Tier One player in the supply chain space."

Ellis says the vendor's promised warehousing and transportation capabilities could fall short for larger users that rely on best-of-breed providers to handle those components of their businesses.  Microsoft, for its part, acknowledged the same at Convergence when questioned by analysts.

"We're not replacing what our partners deliver," explained Dynamics ...