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Shorten lead-time, reduce inventory, reduce complexity, and boost productivity with Microsoft Dynamics 365 Supply Chain.
Navigating Trade Uncertainty in Steel and Metal Fabrication with Dynamics 365 Finance & Supply Chain
Introduction
The global trade landscape is shifting as U.S. tariffs on steel and aluminum imports remain at 25%, prompting retaliatory measures from key trading partners like Canada and China. While the direct impact on global industrial metals may be limited, the ripple effects on supply chains, manufacturing costs, and inflation are significant.
For the steel and metal fabrication industry, these tariffs have created rising raw material costs, disrupted sourcing strategies, and increased price volatility. Higher steel prices affect industries reliant on metal fabrication, including construction, automotive, aerospace, and consumer packaged goods (CPG). These increased costs may slow production, squeeze margins, and drive up consumer prices, further fueling inflationary pressures.
As global trade policies remain uncertain, businesses must prepare for ongoing volatility in material costs, supplier availability, and currency fluctuations. Manufacturers that invest in supply chain resilience, alternative sourcing strategies, and cost-efficient production processes will be best positioned to navigate rising costs while maintaining operational efficiency. Microsoft Dynamics 365 Finance and Supply Chain provides the real-time data, predictive analytics, and automated workflows necessary to optimize operations, reduce cost volatility, and enhance supply chain resilience.
Optimizing Steel and Metal Fabrication Operations with D365 Supply Chain
Traceability and compliance management
With heightened global trade scrutiny, manufacturers need to ensure full traceability for materials and compliance with industry standards like ISO 9001 and ASTM. D365 tracks batch numbers, heat treatments, certifications, and test results throughout the entire production lifecycle.
- Automates material tracking from raw inputs to finished goods
- Ensures compliance with industry regulations and provides audit-ready reports
- Enhances traceability through integrated production and quality data
- Provides real-time compliance monitoring via Power BI dashboards.
End-to-end supply chain visibility
With fluctuating steel and aluminum prices, manufacturers need full visibility into raw material sourcing, inventory levels, and supplier networks to mitigate risks. D365 Supply Chain provides:
- Real-time tracking of raw materials, semi-finished, and finished products for improved inventory accuracy
- AI-powered analytics to assess cost fluctuations and tariff impacts on procurement and production strategies
- Automated supplier collaboration tools to streamline sourcing, negotiate better terms, and reduce disruptions
- Integrated logistics and transportation insights to optimize distribution and control freight costs
With real-time supply chain monitoring and predictive analytics, manufacturers can quickly adjust sourcing and production plans to minimize cost fluctuations.
Order fulfillment optimization
Ensuring product quality is critical for maintaining customer contracts and regulatory compliance. D365 supports quality inspection scheduling, non-conformance tracking, and corrective action management, allowing manufacturers to reduce defects and maintain high-quality standards.
- Automates quality inspection workflows and real-time issue tracking
- Provides historical data analysis to identify recurring issues
- Integrates test results, batch records, and compliance reporting
- Enhances real-time quality monitoring for process improvements
Production planning, yield management, and cost control
Higher tariffs on steel and aluminum are driving up fabrication costs, forcing manufacturers to optimize production efficiency. D365 helps by:
- Automating production scheduling to reduce downtime and improve throughput
- Optimizing material utilization and reducing scrap to lower costs and improve margins
- Providing predictive analytics for yield improvements and process adjustments
- Automating batch planning to improve production capacity utilization
- Providing real-time cost tracking and automated variance analysis to maintain profitability
By integrating production planning with real-time cost analytics, metal fabricators can maintain efficiency and protect margins despite rising raw material costs.
Inventory and demand forecasting
With global trade uncertainty driving steel and aluminum price volatility, manufacturers must fine-tune inventory levels to avoid overstocking expensive materials while ensuring sufficient supply. D365 enables:
- AI-driven demand forecasting to predict fluctuations in material costs and customer demand
- Automated inventory optimization to balance raw material availability with production needs
- Dynamic replenishment strategies that adapt to real-time pricing and supplier constraints
- Integrated supply chain visibility to align procurement with changing trade policies
By leveraging predictive analytics and automated inventory control, manufacturers can reduce financial exposure, improve supply chain agility, and maintain cost efficiency.
Supplier and procurement optimization
Tariff-related trade restrictions and price volatility require a diversified supplier network to stabilize costs and maintain material availability. D365 enhances procurement strategies by:
- Automating supplier evaluations to identify cost-effective, tariff-free sourcing alternatives
- Enhancing contract management and compliance tracking to align with shifting trade policies
- Streamlining procurement workflows to improve sourcing efficiency and reduce manual processing
- Providing cost modeling tools to assess tariff impact and adjust purchasing strategies in real time
With a smarter, more flexible procurement approach, metal fabricators can mitigate sourcing risks and stabilize production costs despite unpredictable tariffs.
Supporting Financial and Pricing Strategies with D365 Finance
With tariffs increasing raw material costs, manufacturers must optimize pricing and control production expenses. D365 integrates cost accounting, financial performance data, and production analytics to provide a comprehensive view of profitability by product line and region.
- Tracks cost per ton and gross margins across different product lines
- Provides real-time visibility into financial performance and cost structures
- Uses Power BI dashboards to analyze cost-saving opportunities
- Enables scenario modeling to assess tariff impacts on profitability
As raw material costs rise, manufacturers must adjust pricing strategies to balance competitiveness and profitability. D365 enables:
- Dynamic pricing models that adjust based on material costs and market demand
- AI-driven consumer trend analysis to forecast demand shifts due to price increases
- Profitability tracking by product line to identify high-margin opportunities
- Customer and distributor collaboration to optimize pricing strategies and secure long-term contracts
With data-driven pricing insights and cost modeling, steel and metal fabricators can remain competitive while maintaining strong profit margins.
Key Benefits of D365 for Steel and Metal Fabrication Manufacturers
Real-time supply chain monitoring to mitigate sourcing risks and improve operational agility
Automated production scheduling to optimize efficiency and balance rising material costs
AI-driven demand forecasting to anticipate market 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 solution tailored to metal fabrication and supply chain resilience requires deep industry expertise. Ascent Innovations is a trusted Microsoft partner with extensive experience helping manufacturers modernize operations, optimize sourcing, and drive measurable ROI.
- Industry-specific expertise – We understand the complexities of raw material sourcing, cost volatility, and supply chain constraints in metal fabrication.
- Business-first approach – We align D365 implementation with operational and financial goals to maximize efficiency and resilience.
- Seamless implementation and support – From strategy to execution, we ensure high adoption rates and ongoing optimization.
- Compliance-driven solutions – Our team configures D365 to align with 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 success.
Why Choose Ascent Innovations?
Successfully implementing an ERP solution tailored to metal fabrication and supply chain resilience requires deep industry expertise. Ascent Innovations is a trusted Microsoft partner with extensive experience helping manufacturers modernize operations, optimize sourcing, and drive measurable ROI.
- Industry-specific expertise – We understand the complexities of raw material sourcing, cost volatility, and supply chain constraints in metal fabrication.
- Business-first approach – We align D365 implementation with operational and financial goals to maximize efficiency and resilience.
- Seamless implementation and support – From strategy to execution, we ensure high adoption rates and ongoing optimization.
- Compliance-driven solutions – Our team configures D365 to align with 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 success.
The Path Forward
Steel and metal fabrication manufacturers must adapt to trade volatility, shifting material costs, and evolving regulatory landscapes to remain competitive. Companies relying on legacy systems and disconnected processes risk higher costs, slower response times, and reduced profitability.
D365 Finance and Supply Chain provides a scalable, AI-driven platform to help metal fabricators optimize sourcing, control costs, and maintain pricing agility, ensuring they can adapt to market uncertainty while protecting margins and growth potential.
By partnering with Ascent Innovations, manufacturers can modernize their ERP, strengthen supply chain resilience, and improve financial flexibility—positioning their business for long-term success in a rapidly evolving 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.
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