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Optimizing Automotive Supply Operations with Dynamics 365 Finance & Supply Chain
Introduction
The automotive supply chain is undergoing a pivotal transformation, driven by supply chain disruptions, labor shortages, rising raw material costs, and evolving regulatory requirements. The recent 25% tariffs on vehicles and auto parts from Mexico and Canada are adding further pressure, increasing production costs and creating uncertainty for suppliers and manufacturers. While some view these tariffs as an incentive to boost domestic manufacturing, they may also lead to higher vehicle prices, supply chain adjustments, and shifts in production strategies.
At the same time, electric vehicles (EVs), connected technologies, and sustainability mandates are reshaping industry priorities, introducing both challenges and new revenue opportunities.
To remain competitive, automotive suppliers must enhance agility, supply chain resilience, and operational efficiency while leveraging advanced technologies to optimize forecasting, procurement, and production planning. Companies that modernize operations with D365 Finance & Supply Chain and Power Platform can gain real-time visibility, process automation, and AI-driven decision-making—enabling them to adapt to industry shifts, reduce costs, and drive profitability.
Optimizing Automotive Supply with D365 Supply Chain
Supply chain visibility and resilience
Automotive suppliers rely on global, multi-tier supply chains, making real-time visibility critical to managing material shortages, tariff impacts, and production delays. D365 enhances supply chain resilience by:
- Providing real-time tracking of raw materials, components, and finished goods
- Automating supplier performance monitoring to reduce lead time risks
- Optimizing alternative sourcing strategies to mitigate tariff-related cost increases
- Integrating AI-powered demand forecasting to anticipate supply constraints
With greater visibility and proactive risk management, suppliers can minimize disruptions and maintain production efficiency.
Production planning and cost control
The rising cost of raw materials, labor, and transportation requires precise production planning and cost control to protect margins. D365 optimizes production by:
- Automating production scheduling to improve factory efficiency
- Reducing waste and scrap with real-time quality monitoring
- Enhancing cost tracking and variance analysis to adjust pricing strategies
- Aligning procurement and production planning for just-in-time inventory control
By integrating cost analytics and AI-driven planning, suppliers can improve efficiency and maintain profitability despite rising costs.
Predictive forecasting for demand and inventory
The automotive industry is experiencing rapid demand shifts, especially with the transition to EVs and alternative powertrains. Accurate forecasting ensures the right inventory is available while avoiding excess stock. D365 helps by:
- Using AI-powered analytics to refine demand forecasting accuracy
- Aligning procurement and inventory replenishment with real-time sales data
- Reducing last-minute purchasing costs caused by stock shortages
- Optimizing inventory planning to prevent overstocking and excess storage costs
With predictive forecasting, suppliers can reduce inventory costs while ensuring production readiness.
Supplier and procurement optimization
Tariffs and supply chain disruptions require flexible supplier relationships and cost-efficient procurement strategies. D365 enhances supplier management by:
- Automating supplier evaluations to identify reliable, cost-effective partners
- Streamlining contract negotiations and compliance tracking
- Leveraging real-time cost modeling to assess tariff impacts on procurement
- Enhancing multi-source procurement to reduce reliance on single suppliers
By improving procurement agility, suppliers can protect margins and minimize risks from trade uncertainty.
Order fulfillment and logistics efficiency
Ensuring on-time delivery of components and finished goods is essential for meeting OEM production schedules. D365 enhances fulfillment operations by:
- Automating order picking, packing, and shipping workflows
- Providing real-time logistics tracking for improved shipment visibility
- Optimizing transportation and freight costs using AI-driven routing
- Reducing order errors and delays with integrated quality controls
With real-time logistics and automation, suppliers can ensure faster, more reliable deliveries.
Enhancing Financial Management with D365 Finance
With tariffs, inflation, and rising operational costs, suppliers must maintain strong financial controls to remain profitable. D365 Finance helps by:
- Automating budgeting, forecasting, and cost variance analysis
- Providing real-time margin tracking by product, supplier, and region
- Enhancing cash flow management to maintain financial stability
- Integrating financial and operational data for better decision-making
By automating financial oversight, suppliers can reduce cost volatility and improve profitability.
Fluctuations in raw material prices and tariffs require dynamic pricing adjustments to sustain profitability. D365 enables:
- AI-driven pricing models that adjust based on costs and market demand
- Profitability tracking tools to ensure margins remain protected
- Automated cost-plus pricing updates in response to supply chain shifts
- Customer segmentation tools to optimize pricing strategies by market segment
By leveraging data-driven pricing models, suppliers can stay competitive while protecting revenue.
Key Benefits of D365 for Automotive Suppliers
Real-time supply chain visibility to manage raw materials, components, and supplier performance
Automated production planning to reduce waste and improve cost efficiency
AI-driven demand forecasting to align inventory with market demand
Optimized procurement strategies to mitigate tariff and sourcing risks
Integrated logistics and order fulfillment automation for faster, more accurate deliveries
Financial and pricing intelligence to control costs and maximize margins
Why Choose Ascent Innovations?
Successfully implementing an ERP solution tailored to automotive suppliers requires deep industry expertise in supply chain management, cost control, and compliance. Ascent Innovations is a trusted Microsoft partner with extensive experience helping suppliers streamline operations, reduce costs, and drive measurable ROI.
- Industry-specific expertise – We understand the complexities of tariff impact, global supply chain disruptions, and manufacturing efficiency.
- Business-first approach – We align D365 implementation with financial and operational goals to maximize profitability.
- Seamless implementation and support – From strategy to execution, we ensure high adoption rates and continuous optimization.
- Procurement and pricing optimization solutions – Our team configures D365 to integrate AI-driven procurement and dynamic pricing models.
- Proven ROI-driven results – Our Agile ROI methodology delivers rapid improvements, cost savings, and long-term competitiveness.
Why Choose Ascent Innovations?
Successfully implementing an ERP solution tailored to automotive suppliers requires deep industry expertise in supply chain management, cost control, and compliance. Ascent Innovations is a trusted Microsoft partner with extensive experience helping suppliers streamline operations, reduce costs, and drive measurable ROI.
- Industry-specific expertise – We understand the complexities of tariff impact, global supply chain disruptions, and manufacturing efficiency.
- Business-first approach – We align D365 implementation with financial and operational goals to maximize profitability.
- Seamless implementation and support – From strategy to execution, we ensure high adoption rates and continuous optimization.
- Procurement and pricing optimization solutions – Our team configures D365 to integrate AI-driven procurement and dynamic pricing models.
- Proven ROI-driven results – Our Agile ROI methodology delivers rapid improvements, cost savings, and long-term competitiveness.
The Path Forward
Automotive suppliers must adapt to supply chain disruptions, rising tariffs, and shifting market demands to stay competitive. Companies relying on manual processes and outdated pricing strategies risk higher costs, slower response times, and declining profitability.
D365 Finance and Supply Chain provides a scalable, AI-driven platform to help suppliers optimize sourcing, automate financial management, and enhance supply chain visibility, ensuring they can adapt to market uncertainty while protecting margins and production efficiency.
By partnering with Ascent Innovations, automotive suppliers can modernize their ERP, strengthen operational agility, and improve financial performance—positioning their business for long-term success in a rapidly evolving industry.
Why Businesses Trust Ascent Innovations
Ascent Innovations is a trusted Microsoft Solution Partner, delivering scalable, business-driven D365 solutions that optimize operations and drive game-changing growth.
Why Businesses Trust Ascent Innovations
Ascent Innovations is a trusted Microsoft Solution Partner, delivering scalable, business-driven D365 solutions that optimize operations and drive game-changing growth.
Our Insights
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