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Its About Cost | How Can We Save? | Approach to D365 for Commerce with Adv WH Mgmt

sumit0417 Profile Picture sumit0417 2,890

Hi Guys, Welcome to another series where we will discuss how D365 FO, can make most Retail Warehouses really efficient. And it accomplishes that through a series of features that provide uncommon functionality, relative to what Retail Warehouses typically have. So in the series, we’re going to go through each of those and see how D365 FO adds a lot of value to most Retail Warehouses.

Not all Retail Warehouses are the same. Some are efficient. Some are not so efficient. So in this series, you should really come away with two things:

The first is D365 FO has some very unique but powerful features that can add a lot of value to most retail operations. There’s some things that D365 FO provides that in turn will drive some significant value, in many operations. And we will go through those so that you’re better prepared to show how D365 FO, once implemented, can really help out a retail operation, especially a smaller one or one that’s less mature.

The second thing is there are ways in which partners can enhance the logic and the capabilities of the product that are also not too overbearing or risky. We will see a little bit about those because those are ways in which you can demonstrate your value to your customer.

And so we are going to go through a few things where together D365 FO and then partner integration and enhancements can really add even more value to a Retail Warehouse operation.

It’s About Cost…

Let us start this discussion just talking about cost. When we think about D365 FO Warehouse Management’s value to a retailer, we have to think about cost reduction. Cost concerns plague a Retail Warehouse. The margins are slim. So there’s always the desire to squeeze another two to three percentage points out of costs every year. Most of this focus is usually around labor, occasionally supplies, but a lot of times it’s labor.

The above shows typical annual labor #s from a direct to consumer warehouse. Picking is the largest consumer of labor in a warehouse and traveling is the largest part of picking.

In the upcoming blogs in this series, we want to focus on unique features that can help reduce operating costs and labor, in particular. We want to begin looking at picking because, when you look at the overall budget for a typical warehouse, picking ends up being the largest one. And you can see, again, walking is the biggest part of the picking process. So there are innumerable numbers of features that have been developed over the years aimed at reducing the amount of walking or travel involved in picking. Some of these are less well known and some of them are more common. It’s interesting that there are a few that D365 FO has that are rather uncommon. So they’re worth highlighting because it is possible or very likely that a prospect may not really have that capability in their existing warehouse today.

So to understand this we need to start stepping into these one by one. In our next blog, we will start with how Batching Orders Saves Operating Cost which is probably the most important or most significant way that you can help a Retail Warehouse operation reduce its costs by figuring out better ways to batch orders in such a way that they travel less.

Feel free to reach out for any clarifications. If you like my blog posts then comment and subscribe to the blogs.

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Disclaimer: The information in the weblog is provided “AS IS”; with no warranties, and confers no rights. All blog entries and editorial comments are the opinions of the author.
Credits: Microsoft Learn, Microsoft Docs

This was originally posted here.

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