D365 IOM [Feature, Benefits and Implementation Steps]

Aug 10, 2023 Aiswarya Madhu

Tired of juggling complex omnichannel fulfillment? It's time to try out the perks of AI order management! In 2021, Microsoft introduced the D365 Intelligent Order Management (IOM).

Dynamics 365 Intelligent Order Management is a cloud-based solution that enables organizations to streamline and optimize their entire order fulfillment lifecycle. It provides a centralized platform to manage and automate order orchestration, omnichannel order capture, inventory visibility, and fulfillment optimization.

Dynamics 365 Intelligent Order Management Features

Dynamics 365 Intelligent Order Management (IOM) offers a comprehensive suite of features designed to centralize and optimize order fulfillment processes. Key features include:

Rules-based Order Fulfillment Orchestration

Create and automate multiple custom order workflows. IOM utilizes rules-based automation to streamline order fulfillment across diverse customer journeys, ensuring efficient and consistent order processing.

Extensive Pre-built Platform Connectors

With over 200 configurable, pre-built Power Platform connectors, IOM seamlessly integrates with your existing order infrastructure. It connects effortlessly to various order intake, fulfillment, and delivery partners such as BigCommerce, Shopify, and others.

Advanced API and Reference Architecture

If a specific pre-built connector is unavailable, IOM's advanced API and reference architecture allow for the easy creation of custom connection points between business applications, ensuring seamless integration across all systems.

Microsoft Dataverse Synchronization

Designed as a Microsoft Dataverse application, IOM shares a common data model with other Dynamics 365 apps. This integration simplifies data ingestion from existing enterprise systems, making onboarding and configuration straightforward and efficient.

Journey Orchestration Designer Tools

Built on the Microsoft Power Platform, IOM features low-code/no-code technology, enabling supply chain team members of all skill levels to design, develop, and deploy order workflows using intuitive drag-and-drop tools. This capability allows for quick adaptation to disruptions and changing requirements.

AI-based Classification and Anomaly Detection Models

Leveraging advanced artificial intelligence and machine learning algorithms, IOM identifies and addresses fulfillment bottlenecks, forecasts inventory needs across all channels, and provides targeted insights. These capabilities help retailers maintain optimal stock levels, adjust delivery times, and enhance cash flow management.

D365 Intelligent Order Management Benefits

Simplified Order Workflow Across Platforms and Applications

IOM redefines the supply chain workflow with automated fulfillment orchestration powered by intelligent rules-based systems. By customizing order flows based on unique customer journeys, retailers can expedite and personalize each fulfillment process with precision.

Consider a manufacturing company that produces electronic devices like smartphones. The company implements Intelligent Order Management (IOM) to streamline its manufacturing processes and improve overall efficiency.

When a customer places an order for a smartphone through the company's website or retail stores,

  • IOM automatically initiates the manufacturing workflow. The system uses advanced algorithms to optimize production schedules, considering factors like available raw materials, production capacities, and delivery timelines.
  • Once the order details are received, IOM communicates with the company's manufacturing systems to ensure the right components are sourced from suppliers. The system also coordinates with the production line, scheduling the assembly process for the specific smartphone model ordered.

Scalability for Businesses of All Sizes

Dynamics 365 Intelligent Order Management offers flexibility, catering to businesses of any size and effortlessly adjusting to changing organizational needs. Whether you are a start-up, a growing enterprise, or an established industry leader, IOM seamlessly adapts to your unique supply chain requirements, providing a dynamic and future-proof solution. Its scalable nature empowers your business to efficiently handle any demand, ensuring smooth operations and customer satisfaction.

Imagine a manufacturing company that starts as a small family-owned business, producing a limited number of products and serving a local customer base. As the business grows, they expand their product offerings, reach new markets, and experience a surge in demand. With Dynamics 365 Intelligent Order Management (IOM),

  • The company achieves seamless scalability by leveraging intelligent automation and dynamic resource allocation.
  • The system optimizes order processing workflows, intelligently distributing tasks across available resources, and automating repetitive processes. As order volumes increase, IOM dynamically allocates additional computing

power and resources to ensure efficient processing without delays. This elasticity allows the company to handle fluctuations in demand while maintaining high levels of accuracy and meeting delivery timelines.

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Seamless Integration with Different Platforms & Applications

The strength of IOM lies in its ability to effortlessly integrate with diverse platforms and applications (ERP, CRM, POS, WMS, Payment Gateways). Equipped with prebuilt connectors and a Reference API, IOM establishes harmonious connections across various systems. These prebuilt connectors serve as ready-made links to external solutions, while the Reference API opens the door for custom integrations, expanding the possibilities of seamless data exchange.

Integration with Existing Systems

Meta Dataverse integration, also known as Microsoft Dataverse integration, is a fundamental aspect of Intelligent Order Management (IOM). Unlike many integration platforms, Meta Dataverse utilizes a common data model shared across the Microsoft Dynamics 365 suite of applications. This commonality ensures seamless data exchange and compatibility between different Dynamics 365 apps, streamlining the integration process.

The integration allows IOM to leverage over 200 pre-built Power Platform connectors, making it effortless to connect with existing order infrastructure and popular e-commerce platforms like BigCommerce and Shopify.

Advanced Payment Integration and Compliance

Dynamics 365 IOM incorporates advanced payment integration features, supporting a variety of payment systems including credit cards and PayPal. This integration ensures a seamless payment cycle from order placement to confirmation, based on fulfillment status.

The system facilitates the automated generation of invoices, catering to both on-account sales and direct sales, thus enhancing the efficiency of the order-to-cash process. Additionally, IOM's capability to integrate with third-party tax engines simplifies tax determination and compliance, further streamlining the financial aspects of order management.

Effortless Design, Develop, and Deploy Order Flows

The Journey Orchestration Designer Tool sets IOM apart as a visionary in supply chain management. This innovative tool enables businesses to proactively respond to disruptions and adapt to rapidly changing market demands. Leveraging the power of drag-and-drop functionality and AI-driven insights, the Journey Orchestration Designer Tool empowers supply chain teams to craft, deploy, and modify order flows in real-time, ensuring agile and adaptive order fulfillment.

Here's how the Journey Orchestration Designer Tool works:

Intuitive Interface:

The tool offers a user-friendly, drag-and-drop interface that allows supply chain teams to visually map out the entire order fulfillment process effortlessly and customize order flows easily.

AI-driven Insights:

Leverages artificial intelligence to analyze historical data, market trends, and real-time information to help optimize order flows and identify potential bottlenecks or areas for improvement.

Real-time Adaptability:

With the power of real-time data integration, supply chain teams can respond swiftly to changing circumstances. They can modify order flows on the fly to accommodate unforeseen disruptions, adjust to fluctuating demands, or capitalize on emerging opportunities.

Streamlined Deployment:

Once the order flows are designed, the Journey Orchestration Designer Tool facilitates quick deployment across the supply chain ecosystem. Automated processes ensure seamless communication and collaboration between different departments, partners, and vendors involved in order fulfillment.

Eliminate Fulfillment Bottleneck

IOM embraces cutting-edge AI-based Classification and Anomaly Detection Models to proactively forecast inventory needs.

  • The AI-based models continuously analyze data from various points in the supply chain, including order processing, inventory management, and logistics. By analyzing this data, the models can identify potential bottlenecks or inefficiencies in the fulfillment process before they escalate.
  • The AI-based anomaly detection models monitor various data streams and identify deviations from normal patterns or expected behaviors. This helps detect unusual events or situations that may impact the supply chain, such as sudden changes in demand, disruptions in logistics, or irregularities in inventory levels. Early detection of anomalies allows retailers to take prompt corrective actions and mitigate potential risks.

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Tax Compliance Made Easye

IOM's ability to integrate with third-party tax engines simplifies the management of tax determination and compliance related to order management. Integration options like AvaTax automate tax rate calculations, product classification, tax payment remittance, and the management of exempt sales and exception documentation, ensuring compliance with minimal effort.

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Steps to Set Up D365 IOM

Setting up Dynamics 365 Intelligent Order Management in your supply chain involves several key steps to ensure a seamless integration and to leverage its capabilities for optimizing order management processes. Dynamics 365 Intelligent Order Management enables businesses to manage orders more efficiently, automate fulfillment, and integrate with various e-commerce, logistics, and supply chain management systems through AI and machine learning technologies. Here’s how to set it up:

1. Initial Setup and Configuration

  • Sign Up for Dynamics 365: If you haven't already, sign up for Dynamics 365 and choose the Intelligent Order Management module. Ensure you have the necessary licenses.
  • Access the Admin Center: Log in to the Dynamics 365 admin center with your credentials to start the setup process.
  • Install Intelligent Order Management: Navigate to the Dynamics 365 applications section, find Intelligent Order Management, and install it. This process may take some time.

2. Define Your Order Management Processes

  • Configure Order Types: Define the types of orders you'll be managing (e.g., e-commerce, B2B, returns) to customize the order flow according to your business needs.
  • Set Up Order Channels: Configure the order channels (e.g., online stores, marketplaces) from which you will be receiving orders. This involves integrating with these platforms.
  • Design Order Flows: Utilize the visual designer in Intelligent Order Management to create and customize your order flows. This includes defining how orders are processed, validated, and fulfilled.

3. Integration with External Systems

  • Connect to E-commerce Platforms: Integrate with your e-commerce platforms to synchronize order data. Dynamics 365 supports various connectors for popular platforms.
  • Link with Logistics Providers: Set up integrations with your logistics and shipping providers to automate the fulfillment process and update order statuses in real-time.
  • ERP and CRM Integration: Connect Dynamics 365 Intelligent Order Management with your existing ERP and CRM systems for a unified view of your business operations.

4. Configure Rules and Automation

  • Define Business Rules: Use the business rules engine to set up rules for order validation, allocation, and routing based on factors like inventory levels, delivery location, and customer preferences.
  • Automate Fulfillment: Configure automated workflows for order fulfillment, such as picking, packing, and shipping, to increase efficiency and reduce manual intervention.

5. Set Up Inventory and Fulfillment Locations

  • Inventory Management: Ensure your inventory levels across all locations are integrated and visible within Dynamics 365 for accurate order fulfillment.
  • Define Fulfillment Centers: Specify your fulfillment centers and warehouses within the system to optimize order routing based on proximity and stock availability.

6. Testing and Training

  • Conduct Testing: Before going live, thoroughly test your order management setup, including integrations and automated workflows, to ensure everything functions as expected.
  • Staff Training: Train your team on using Dynamics 365 Intelligent Order Management.

7. Go Live and Monitor

  • Launch: After testing and training, go live with your Intelligent Order Management setup.
  • Monitor and Optimize: Continuously monitor the system’s performance and use insights from analytics to optimize your order management processes over time.

8. Utilize Advanced Features

  • Explore advanced features such as AI-based demand forecasting, real-time analytics, and customer service enhancements to further improve your supply chain efficiency.

Wondering How to Tailor D365 IOM for Your Business

Dynamics 365 IOM Pricing & Licensing

Dynamics 365 IOM is uniquely licensed per tenant, offering a holistic approach to managing your organization's order fulfillment process. This structure means the licensing fee covers the entire organization, not just individual users, fostering a unified and centralized order management strategy.

Initial Capacity and Expandability

With each license, Dynamics 365 IOM provides an initial capacity of 1,000 order lines per tenant per month. This setup is designed to accommodate the needs of small to medium-sized businesses, offering them a robust framework to manage their orders efficiently.

For organizations with a higher volume of orders, Dynamics 365 IOM offers the flexibility to purchase additional capacity. This scalability ensures that as your business grows, your order management system can grow with you, maintaining efficiency and responsiveness.

Pricing Details

The cost for Dynamics 365 IOM is set at $300 for every 1,000 order lines each month. This pricing model is crafted to give businesses full access to a suite of advanced features, including real-time inventory management and AI-driven fulfillment strategies, empowering them to manage the entire order lifecycle from capture to fulfillment effectively.

Included Power Automate Use Rights

An added benefit of the Dynamics 365 IOM license is the inclusion of limited Power Automate use rights. These rights allow for a specified number of Power Platform requests each month, along with the use of connectors, enhancing the automation capabilities of your order management processes.

Electronic Invoicing Capabilities

Included in the Dynamics 365 IOM license are electronic invoicing features, with each tenant receiving 100 electronic invoice transactions and 100 invoice capture transactions per month. For those requiring more, add-on options are available, providing an extra 1,000 transactions for both invoicing and capture, ensuring scalability and flexibility in handling high volumes of transactions.

Microsoft Teams Integration

Organizations holding a Modern Workplace license have the added advantage of integrating Dynamics 365 IOM with Microsoft Teams. This integration facilitates seamless collaboration on order management records, enhancing efficiency and teamwork across the board.

Challenges Addressed by D365 Intelligent Order Management (IOM)

Traditional order management systems often struggle to cope with the growing complexity of modern supply chains, resulting in inefficiencies, errors, and dissatisfied customers. The need for AI order management (IOM) arises from several key reasons:

Growing Complexity of Supply Chain Management

With multiple suppliers, warehouses, and distribution centers involved, supply chains have become increasingly intricate, demanding a more sophisticated approach to order management.

Increased Customer Expectations

In today's competitive market, customers expect fast delivery times, real-time order tracking, and personalized experiences. Traditional systems may fall short of meeting these heightened expectations.

Rapidly Changing Market Dynamics

The business landscape is constantly evolving, requiring agile and adaptable order management systems to respond to changing market conditions.

Need for Operational Efficiency

Inefficient order processes can lead to delays and higher operational costs. IOM aims to streamline operations and reduce manual intervention.

Demand for Real-time Visibility and Control

Real-time order status updates and inventory tracking are critical for gaining customer trust and loyalty.

Integration of Multiple Channels and Systems

Businesses often operate across various sales channels, making seamless integration with the order management system essential.

Inefficient Fulfilment Processes

Manual and inefficient fulfilment processes can lead to delayed deliveries and customer dissatisfaction. Intelligent routing and fulfilment are key to optimizing the delivery process.

Lack of Predictive Insights

Advanced order management systems leverage AI and ML to provide predictive insights, enabling organizations to anticipate demand and plan more effectively.

Bottom Line

As businesses navigate the dynamic landscape of retail, D365 IOM stands as an ally for achieving supply chain agility. With its unmatched capabilities in simplifying workflows, integrating seamlessly with diverse platforms, and leveraging advanced AI-driven technologies, IOM empowers retailers to deliver unparalleled customer experiences and drive operational excellence.

At Nalashaa Digital, we understand the critical importance of supply chain management in achieving operational excellence and delivering exceptional customer experiences. Our team of experts is dedicated to implementing Dynamics 365 for Supply Chain Management in a way that aligns perfectly with your unique business needs and goals. Get in touch with us today to know how we will help you elevate your supply chain agility.

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