CPG, harness the potential with real-time data
Streamline operations, respond to trends, and uncover value with Microsoft Cloud & Dynamics 365 Supply Chain
Navigating CPG Industry Challenges with Dynamics 365 Finance & Supply Chain
Introduction
The consumer packaged goods (CPG) industry is facing a turbulent market as tariffs on imports hover around 25%, driving higher costs for raw materials, packaging, and ingredients. With many essential components sourced internationally—such as spices, fresh produce, supplements, and aluminum for packaging—manufacturers must navigate rising expenses, supply chain disruptions, and shifting consumer demand.
These challenges come at a time when consumer behavior is also evolving. Faced with price increases, shoppers are shifting toward private-label brands, bulk purchasing, and cost-saving alternatives, creating new competitive pressures for CPG manufacturers.
Meanwhile, retailers are demanding greater flexibility and just-in-time inventory to manage fluctuating costs and shifting demand patterns.
To succeed in this environment, CPG manufacturers must strengthen supply chain resilience, optimize production, and control costs while maintaining agility to respond to sudden tariff changes and market fluctuations. Microsoft Dynamics 365 Finance and Supply Chain provides real-time visibility, automated workflows, and AI-driven forecasting, helping companies streamline operations, stabilize pricing, and protect profitability despite economic uncertainty.
Optimizing CPG Operations with D365 Supply Chain
End-to-End Supply Chain Visibility
CPG manufacturers must manage complex supply chains that span multiple suppliers, distribution channels, and retail partners. D365 Supply Chain enables real-time monitoring and control by:
- Providing full traceability of ingredients, packaging materials, and finished goods to meet compliance standards
- Automating inventory tracking and replenishment to prevent shortages and optimize stock levels
- Enhancing supplier collaboration to reduce risks from tariff-driven sourcing challenges
- Improving logistics visibility to optimize distribution networks and minimize delays
By centralizing supply chain data and integrating AI-driven analytics, manufacturers can quickly adjust sourcing, mitigate disruptions, and improve operational efficiency.
Production planning and tariff impact mitigation
Manufacturing costs are rising due to increased tariffs on imported materials like spices, oils, packaging components, and aluminum. D365 helps optimize production by:
- Automating recipe and batch management to reduce material waste and improve cost control
- Optimizing production scheduling to align with changing demand and material availability
- Enhancing supplier flexibility by integrating alternative sourcing options in procurement workflows
- Implementing AI-driven forecasting to predict material cost fluctuations and adjust pricing strategies
With real-time production insights, manufacturers can adapt quickly to shifting costs, prevent supply chain bottlenecks, and maintain profitability despite tariff volatility.
Inventory and demand forecasting
Uncertain tariffs mean that costs and availability of raw materials can change overnight. To stay ahead, CPG manufacturers must optimize inventory management and demand planning. D365 enables:
- AI-powered demand forecasting to align production with shifting consumer demand and supply chain constraints
- Automated inventory tracking to prevent overstocking or shortages of high-cost materials
- Real-time cost analysis to adjust procurement and production strategies in response to tariff fluctuations
- Integration with retail and distributor networks to streamline fulfillment and reduce waste
By leveraging predictive analytics and real-time data, manufacturers can proactively manage inventory levels, stabilize costs, and minimize financial risks
Supplier & Procurement Optimization
CPG manufacturers must diversify their supplier base to mitigate tariff risks and maintain cost efficiency. D365 enhances procurement strategies by:
- Automating supplier evaluations to identify cost-effective, tariff-free sourcing alternatives
- Enhancing vendor collaboration portals for seamless order tracking and contract negotiations
- Optimizing procurement workflows to balance price fluctuations and minimize disruptions
- Leveraging AI-driven cost modeling to assess tariff impact and adjust supplier strategies in real time
With a smarter, more flexible procurement approach, manufacturers can reduce sourcing risks and stabilize production costs despite unpredictable tariffs.
Supporting Financial and Pricing Strategies with D365 Finance
With tariffs increasing operational expenses, CPG manufacturers need greater visibility into financial performance. D365 Finance helps by:
- Automating financial workflows for budgeting, accounts payable, and cost tracking
- Providing real-time profitability analysis to assess the impact of tariffs on margins
- Optimizing cash flow management to ensure capital availability for sourcing and expansion
- Integrating financial and supply chain reporting for strategic cost planning
By centralizing financial data and automating cost controls, manufacturers can navigate tariff-related expenses and improve profitability.
As tariffs drive up product costs, CPG manufacturers must balance competitive pricing with margin protection. D365 enables:
- Dynamic pricing adjustments based on material costs and market conditions
- AI-driven consumer trend analysis to forecast demand shifts due to price increases
- Profitability tracking by product category to prioritize high-margin items
- Retailer and distributor collaboration to align pricing with real-time market trends
With real-time pricing insights and cost analysis, manufacturers can respond proactively to price sensitivity and maintain profitability.
Key Benefits of D365 for CPG Manufacturers
Real-time supply chain tracking to mitigate sourcing risks and improve operational agility
Automated production scheduling to align with fluctuating material availability and cost changes
AI-powered demand forecasting to anticipate consumer shifts and optimize inventory
Optimized procurement strategies to navigate tariff fluctuations and supplier challenges
Integrated financial and pricing insights to balance costs, margins, and competitive positioning
Why Choose Ascent Innovations?
Successfully implementing an ERP tailored to the CPG industry requires deep expertise in supply chain, pricing, and compliance management. Ascent Innovations is a trusted Microsoft partner with extensive experience helping CPG manufacturers modernize operations, optimize sourcing, and drive measurable ROI.
- Industry-specific expertise – We understand the complexities of sourcing, tariff impacts, and consumer demand shifts.
- Business-first approach – We align D365 implementation with your operational and financial goals to drive long-term success.
- Seamless implementation and support – From strategy to execution, we ensure high adoption rates and ongoing optimization.
- Compliance-driven solutions – Our team configures D365 to meet regulatory and trade requirements, reducing risk and improving efficiency.
- Proven ROI-driven results – Our Agile ROI methodology delivers rapid improvements, positioning your business for sustained growth.
Why Choose Ascent Innovations?
Successfully implementing an ERP tailored to the CPG industry requires deep expertise in supply chain, pricing, and compliance management. Ascent Innovations is a trusted Microsoft partner with extensive experience helping CPG manufacturers modernize operations, optimize sourcing, and drive measurable ROI.
- Industry-specific expertise – We understand the complexities of sourcing, tariff impacts, and consumer demand shifts.
- Business-first approach – We align D365 implementation with your operational and financial goals to drive long-term success.
- Seamless implementation and support – From strategy to execution, we ensure high adoption rates and ongoing optimization.
- Compliance-driven solutions – Our team configures D365 to meet regulatory and trade requirements, reducing risk and improving efficiency.
- Proven ROI-driven results – Our Agile ROI methodology delivers rapid improvements, positioning your business for sustained growth.
The Path Forward
CPG manufacturers must adapt to shifting tariffs, supply chain volatility, and evolving consumer expectations to remain competitive. Companies relying on legacy systems and disconnected processes risk higher costs, slower response times, and reduced market share.
D365 Finance and Supply Chain provides a scalable, AI-driven platform to help CPG manufacturers optimize sourcing, control costs, and maintain pricing agility, ensuring they can adapt to market uncertainty while driving profitability.
By partnering with Ascent Innovations, CPG manufacturers can modernize their ERP, improve financial resilience, and maintain operational excellence—positioning their business for success in a rapidly changing global trade environment.
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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