Chapter 1: Overview

CHAPTER 1: OVERVIEW
Objectives
The objectives are: Explain the concepts of supply chain in Microsoft Dynamics AX 2012. Describe the concept of product information management. Discuss the concept of inventory management. Explain the concept of warehouse management. Describe the concept of quality management.

Introduction
The Overview module provides an introduction of the supply chain and logistic features in Microsoft Dynamics AX 2012.

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Supply Chain Foundation in Microsoft Dynamics AX 2012

Supply Chain
Supply chain management is the management of a network of interconnected business involved in the ultimate provision of product and service package required by the end consumer. There are many processes in the supply chain. The Sales Order Processing figure displays the flow for a sales order through Microsoft Dynamics AX 2012.

FIGURE 1.1 SALES ORDER PROCESSING

The Purchase Order Processing figure displays the flow for a purchase order through Microsoft Dynamics AX 2012.

FIGURE 1.2 PURCHASE ORDER PROCESSING

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Chapter 1: Overview

Product Information Management

Product information management is the process of managing information about products. This information or data is required to purchase, sell, and manage the product. Product information is centrally managed in Microsoft Dynamics AX 2012. This allows for it to be consistent and accurate, and can be used by more than one distribution channel. Products can be item or services, and products that are tracked in the warehouse become inventory. Inventory is the material and supplies a business carries either for sale or to provide input in the production process. Inventory consists of many products that are held by the company, that can include the following: Raw materials and supplies Products in production Sub-assemblies Finished products ready for sale

Inventory Management
Inventory management is planning and controlling inventory from the raw material stage to the customer. Companies must consider inventory at every planning level. Companies can manage inventory at the aggregate level and the product level. A company's management team must establish decisive rules about inventory products including consideration of the following: The most important products to keep in inventory The control of products through a company The quantity of inventory to be ordered The timing of when a product should be ordered

Microsoft Dynamics AX 2012 manages the cost and quantities of the products that are purchased and sold. Regardless of whether a company is a retail business with merchandise inventory or a manufacturing company with raw materials, finished products, materials, and work in process, the system provides inventory from two standpoints: Physical and Financial.

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Supply Chain Foundation in Microsoft Dynamics AX 2012

Warehouse Management
Warehouse management is a key part of the supply chain and controls the movement and storage of inventory. Warehouse transactions include receiving products from suppliers, putting away inventory into the warehouse, picking products for sales, production, or transfer orders, and shipping products. Tracking inventory can be simple or complex, depending on the business requirements. The following are dimensions in which the inventory can be tracked: Site Warehouse Location Pallet ID Batch number Serial number

Quality Management
Quality management makes sure that all products are of a constant quality by enforcing strict guidelines to controlling the product and using routine checks and test. Microsoft Dynamics AX 2012 lets you perform these test and checks.

Summary
The Overview module provides a quick introduction to supply chain and logistics, and it introduces the feature areas in Microsoft Dynamics AX 2012 that support them.

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Chapter 1: Overview

Quick Interaction: Lessons Learned

Take a moment and write down three key points you have learned from this chapter 1.

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Supply Chain Foundation in Microsoft Dynamics AX 2012

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