Strike a strategic inventory balance in your supply chain with demand driven material requirements planning (DDMRP)

Strike a strategic inventory balance in your supply chain with demand driven material requirements planning (DDMRP)

This article is contributed. See the original author and article here.

Today we are excited to announce the preview of our demand driven material requirements planning (DDMRP) feature for Microsoft Dynamics 365 Supply Chain Management.

The evolution of MRP

DDMRP is the next evolution of material requirements planning (MRP), which has a long and storied history in manufacturing. From its origins in the early 1960s as the first manufacturing information system, MRP’s first evolution was to MRP II during the 1980s. Then, in the 1990s, MRP II evolved further into sales and operations planning (S&OP). Most recently, MRP was extended to include major enterprise functions, forming the basis of modern enterprise resource planning (ERP) systems. As such, it is fair to say that MRP’s staying power rests in the fact that it works.

Still, almost anyone involved in manufacturing planning can tell you that while MRP works, it is far from perfect. Organizations of every industry, size, and sophistication still have items that they chronically either have too much of or, conversely, never have enough. These items drive unplanned schedule changes, create inefficiencies, and increase costs in various ways. With the arrival of DDMRP, MRP continues to add to its storied history by incorporating new innovative thinking, such as strategically decoupling inventory from the sales forecast and introducing a new calculation for lead time, that delivers significant benefits to early adopters’ organizations.

What is DDMRP?

As MRP continued to be useful, it eventually became a standard function of modern-day ERP. During this time, other significant manufacturing philosophies and methods were born. The least effective of these were fads that have faded from use, but a handful went on to transform manufacturing in their own right. These include distribution requirements planning (DRP), lean manufacturing, theory of constraints (TOC), and Six Sigma. Each of these methodologies added a tool to our belt of such significance that they remain with us and in broad use today. This brings us back to DDMRP, the newest iteration of MRP, and our latest feature available for preview. While DDMRP is a relatively new methodology, it borrows and combines elements from the tried-and-true manufacturing philosophies discussed earlier in this paragraph.

According to the Demand Driven Institute, demand driven material requirements planning (DDMRP) is “a multi-echelon planning and execution method to protect and promote the flow of relevant information through the establishment and management of strategically placed decoupling point stock buffers.”1 It is important to note that the Demand Driven Institute is essentially a standards body for all DDMRP matters. They offer certification for software vendors to ensure that the principles of DDMRP are adequately embedded and utilized in a given application, and we are proud to share that Dynamics 365 Supply Chain Management is Demand Driven Institute compliant.

Screenshot of the Dynamics 365 Supply Chain Management interface, standard view.
Figure 1: Dynamics 365 Supply Chain Management item coverage with buffer zones.

Learn more about our DDMRP feature and how to enable it within supply chain management (SCM).

Benefits of using DDMRP

Several of the benefits of using DDMRP include the following:

  • Improve customer service to consistently reach 97 to 100 percent on-time order fulfillment rates.
  • Compress lead times for typical reductions above 80 percent across several industry segments.
  • Optimize inventory to unlock inventory reductions of 30 to 45 percent without impacting service levels.
  • Lower total operating costs by eliminating the false signals and schedule break-ins that drive expensive expedite activities, such as fast freight, partial ships, and cross-ships.
  • Improve planner productivity by providing visibility of priorities instead of constantly fighting the conflicting messages of MRP.

Create a predictive and resilient supply chain

According to a 2022 McKinsey & Company survey of dozens of supply chain executives, 90 percent expect to overhaul planning IT within the next five years.2 The renewed focus on supply chain planning was born from a broad recognition formed during COVID-19: our modern, lean, just-in-time supply chains were amazingly efficient and cost-effective but far from resilient in the face of unprecedented and sustained global disruptions.

As businesses grappled with how to respond to the crisis, many identified opportunities to invest in their supply chain to become more predictive and resilient. It was no longer acceptable, as an example, for manufacturing production scheduling runs to last several hours or only run once per day. The new normal required systems to give planners near-real-time visibility and control and were capable of executing planning runs multiple times per day in the span of minutes. With our Planning Optimization Add-in, we were able to move master planning calculations outside of Dynamics 365 Supply Chain Management, which reduced planning runtimes from hours to minutes. The Planning Optimization Add-in also introduced priority-based planning, which allows businesses to distinguish demand based on urgency, and introduced one of the five steps required as part of DDMRP.

Screenshot of the Dynamics 365 Supply Chain Management interface, displaying Planned orders on the Master planning screen.
Figure 2: Dynamics 365 Supply Chain Management master planning workspace with Planning Optimization.

Microservices, like the Planning Optimization Add-in, are one way to quickly realize value from an ERP migration to the cloud. They deliver benefits such as better performance by offloading workloads to the cloud and improving adaptability by allowing you to react to changing demand in real-time. Ultimately, these investments in planning-related improvement features are designed to reduce stockouts and lower the cost of on-hand inventory, all while ensuring that more customer orders are fulfilled on time and in full.

Learn more in our recent blog: Optimize your supply chain with priority-based planning.

Maximize operational efficiency with agile business applications

In this blog, we announced the preview of DDMRP, reviewed the evolution of MRP, and provided a basic understanding of what DDMRP is and its benefits. Then we touched on related microservice add-ins for Dynamics 365, such as Planning Optimization and priority-based planning, which are helping organizations create predictive and resilient supply chains.

Dynamics 365 Supply Chain Management is an agile and modern, composable business application. It enables manufacturers, retailers, and distributors to create a connected and resilient supply chain by enhancing visibility, advancing planning agility, and maximizing asset uptime to operate profitably during disruptions. And for companies planning to migrate their ERP to the cloud, the composable approach of Dynamics 365 makes it easy to start with a single workload and add additional solutions as the business evolves and needs mature. It also streamlines planning, production, inventory, warehouse, and transportation to maximize operational efficiency while also giving you access to groundbreaking innovations such as demand driven material requirements planning (DDMRP).

What’s next?

Want to learn more about how your organization can use Dynamics 365 Supply Chain Management to increase production volume while reducing infrastructure costs? Check out The Total Economic Impact Of Microsoft Dynamics 365 Supply Chain Management from Forrester Consulting.


Sources

1Demand Driven Institute. What is DDMRP?

2McKinsey & Company, 2022. To improve your supply chain, modernize your supply-chain IT.

The post Strike a strategic inventory balance in your supply chain with demand driven material requirements planning (DDMRP) appeared first on Microsoft Dynamics 365 Blog.

Brought to you by Dr. Ware, Microsoft Office 365 Silver Partner, Charleston SC.

Honor customer data use consent with unified profiles in Dynamics 365 Customer Insights

Honor customer data use consent with unified profiles in Dynamics 365 Customer Insights

This article is contributed. See the original author and article here.

Data protection and privacy regulations, such as the General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in the United States, give individuals the right to govern how an organization uses their personal data. These regulations allow people to opt in or out of having their personal data collected, processed, or shared, and require organizations to implement reasonable procedures and practices to obtain and respect their customers’ data use consent.

What is consent?

What do we mean when we talk about “consent” in the context of data protection and privacy? Simply put, it’s an individual’s decision about whether and how data about them is collected and used. Easy to define, but extraordinarily complex in practice.

Organizations have multiple types of information about their customers, including transactional data (such as membership renewals), behavioral data (such as URLs visited), and observational data (such as time spent on specific webpages). Additionally, customers can have multiple types of contact points (such as email addresses, phone numbers, and social media handles). Adding to an already complex challenge, the purposes for using customer data can vary across an organization’s lines of business and can number in the dozens.

Consider the example of an online sports franchise that has two different lines of business: football merchandise and memberships. The organization will need to capture the following information to use a customer’s data with their consent:

  • Organization: Contoso Football Franchise
  • Line of business: Football merchandise
  • Contact point: someone@example.com 
  • Purpose for using data: Email communications with promotional offers for football merchandise
  • Consent preference: Opt-in/opt-out

A customer’s consent to collect and use their data must be obtained for each data source, contact point, and use or purpose.

The challenge: Obtain consent for multiple types of personal data and contact points

Every industry around the globe is affected by privacy legislation and related requirements, from the Health Insurance Portability and Accountability Act (HIPAA) in the healthcare industry, to the Children’s Online Privacy Protection Act (COPPA) in online services, to legal frameworks such as the GDPR, to state-specific acts such as the CCPA. Requesting and respecting your customer’s consent for each contact point, type of data, and the purposes to which the data is putwhich must comply with all applicable data protection and privacy regulationsquickly becomes a monumental task.

The solution: Include consent in your customer data platform

One way to be sure you’ve captured granular levels of consent preferences is to ingest customer data from various sourcestransactional, behavioral, and observationalinto a customer data platform (CDP). A CDP like Microsoft Dynamics 365 Customer Insights helps you build a complete picture of individual customers that includes their consent for specific uses of their data.

Unified customer profiles in Customer Insights provide 360-degree views of your customers, including the consent they’ve granted for using their data. Customer Insights enables companies to add their captured consent data as a primary attribute, ensuring that you can honor your customers’ preferences for the collection, processing, and use of their data. Capturing consent preferences can help you power personalized experiences for customers while at the same time respecting their right to privacy.

Respecting customers’ preferences for specific data use purposes is key to building trust relationships. Dynamics 365 Marketing automatically applies consent preferences through subscription centers to support compliance with the GDPR, CCPA, HIPAA, and other data protection and privacy regulations.

Why include consent in a unified customer profile?

Here are three common scenarios that illustrate the significant advantages to having consent data as part of a single, unified customer profile.

Consent data is specific to lines of business and, hence, is often fragmented.
Consider our earlier example of the online sports franchise with two different lines of business, football merchandise and memberships. This organization is likely to have separate consent data captured by each line of business for the same customer. It makes a lot of sense to unify these consent data sources into a single profile to enforce organization-wide privacy policies.

The customer can revoke consent at any time and expects the business to honor the change with immediate effect. For instance, when a customer who is browsing a website revokes consent for tracking, it must stop immediately. Otherwise, the business risks losing the customer’s trust and could be in violation of regulatory requirements.

When customer consent data isn’t stored with the unified profile, there can be significant delays in syncing data between the marketing application and the consent data source. As part of a unified profile, however, consent data can be updated automatically and the updated profiles can be used to refresh segments, ensuring that customers who have revoked consent are excluded from the segments in a timely manner.

Personal data is anonymized or pseudonymized. Anonymized or pseudonymized customer data is often used for machine learning and AI processing, for instance. If customers’ consent to use their data for this purpose is recorded in separate anonymized or pseudonymized user profiles, it becomes much harder to map a given customer profile across different data sources. When the consent data is stored in a unified profile, however, the organization can continue to get the benefit of data from combined customer interactions when the user identity is anonymized or pseudonymized.

Learn more

Check out the following resources to learn more about customer consent, unified profiles in Dynamics 365 Customer Insights, the GDPR, and the CCPA.

The post Honor customer data use consent with unified profiles in Dynamics 365 Customer Insights appeared first on Microsoft Dynamics 365 Blog.

Brought to you by Dr. Ware, Microsoft Office 365 Silver Partner, Charleston SC.

Stream Microsoft Defender for IoT alerts to a 3rd party SIEM

Stream Microsoft Defender for IoT alerts to a 3rd party SIEM

This article is contributed. See the original author and article here.

Overview


As more businesses convert OT systems to digital IT infrastructures, security operations center (SOC) teams and chief information security officers (CISOs) are increasingly responsible for handling threats from OT networks.


 


Defender for IoT’s built-in integration with Sentinel helps bridge the gap between IT & OT securitychallenge. Sentinel enables SOC teams to reduce the time taken to manage and resolve OT incidents efficiently by providing out-of-the-box capabilities to analyze OT security alerts, investigate multistage IT/OT attacks, utilize Azure Log Analytics for threat hunting, utilize threat intelligence, and automate incident response using SOAR playbooks.


 


Customer engagements have taught us that sometimes customers prefer to maintain their existing SIEM, alongside Microsoft Sentinel, or as a standalone SIEM.


In this blog, we’ll introduce a solution that sends Microsoft Defender for IoT alerts to an Event Hub that can be consumed by a 3rd party SIEMs. You can use this solution with Splunk, QRadar, or any other SIEM that supports Event Hub ingestion.


 


Preparation and use


In this blog, we’ll use Splunk as our example.


Screen Shot 2022-07-25 at 9.02.11.png


 


The following describe the necessary preparation steps:



  1. Connect your alerts from Defender for IoT to Microsoft Sentinel

  2. Register an application in Azure AD

  3. Create an Azure Event Hub Namespace

  4. Prepare Azure Sentinel to forward Incidents to Event Hub

  5. Configure Splunk to consume Azure Sentinel Incidents from Azure Event Hub



1. Connect your alerts from Defender for IoT to Microsoft Sentinel


The first step is to enable the Defender for IoT data connector so that all Defender for IoT alerts are streamed into Microsoft Sentinel (a free process).


 


In Microsoft Sentinel, under Configuration, select Data Connectors and then locate Microsoft Defender for IoT data connector. Open the connector page, select the subscription whose alerts you want to stream into Microsoft Sentinel, and then select Connect.


 


For more information, see Connect your data from Defender for IoT to Microsoft Sentinel


2. Register an application in Azure AD


You’ll need Azure AD to be defined as a service principal for Splunk Add-on for Microsoft Cloud Services.



  1. To register an app in Azure AD, open the Azure Portal and navigate to Azure Active Directory > App Registrations > New Registration. Fill the Name and click Register.

    Screen Shot 2022-07-25 at 9.16.35.png



  2. Click Certificates & secrets to create a secret for the Service Principle. Click New client secret and note its value.
    Screen Shot 2022-07-25 at 9.27.04.png


  3. To grant the required permissions to read data from the app, click API permissions > Add a permission and select Microsoft Graph > Application permissions > SecurityEvents.ReadWrite.All.
    Screen Shot 2022-07-25 at 9.28.43.png

    Ensure that the granted permission is approved by admin.



  4.  For the next step of setting up Splunk Add-on for Microsoft Cloud Services, note the following settings:


    • The Azure AD Display Name

    • The Azure AD Application ID

    • The Azure AD Application Secret

    • The Tenant ID





3. Create an Azure Event Hub Namespace



  1. In the Azure Portal, navigate to Event Hubs > New to create a new Azure Event Hub Namespace. Define a Name, select the Pricing Tier and Throughput Units and click Review + Create.
    Screen Shot 2022-07-25 at 9.29.48.png


  2. Once the Azure Event Hub Namespace is created click Go to resource and click + Event Hubs to create an Azure Event Hub within the Azure Event Hub Namespace.


  3. Define a Name for the Azure Event Hub, configure the Partition CountMessage Retention and click Review + Create.
    Screen Shot 2022-07-25 at 9.33.29.png


  4. Navigate to Access control (IAM) and Click + Add > Add role assignment to add the Azure AD Service Principle created before and delegate as Azure Event Hubs Data Receiver and click Save.
    Screen Shot 2022-07-25 at 9.30.15.png


  5. For the configuration of Splunk Add-on for Microsoft Cloud Services app, make a note of following settings:

    • The Azure Event Hub Namespace Host Name

    • The Azure Event Hub Name





4. Prepare Azure Sentinel to forward Incidents to Event Hub


To forward Microsoft Sentinel incidents or alerts to Azure Event Hub, you’ll need to define your Microsoft Sentinel workspace with a data export rule.



  1. In the Azure Portal, navigate to Log Analytics > select the workspace name related to Microsoft Sentinel > Data Export > New export rule.
    Screen Shot 2022-07-25 at 9.30.24.png


  2. Name the rule, configure the Source as SecurityIncident and the Destination as Event Type utilizing the Event Hub Namespace and Event Hub Name configured previously. Click on Create.
    Screen Shot 2022-07-25 at 9.30.43.png


5. Configure Splunk to consume Microsoft Sentinel Incidents from Azure Event Hub


For Microsoft Defender for IoT alerts to be ingested into Azure Event Hub, install the Splunk Add-on for Microsoft Cloud Services app.



  1. For the installation, open the Splunk portal and navigate to Apps > Find More Apps. For the dashboard find the Splunk Add-on for Microsoft Cloud Services app and Install.
    Screen Shot 2022-07-25 at 9.30.53.png


  2. To add the Azure AD Service Principal, open the Splunk app and navigate to Azure App Account > Add. Use the details you’d noted earlier:

    Define a Name for the Azure App Account


    Add the Client ID, Client Secret, Tenant ID


    Choose Azure Public Cloud as Account Class Type


    Click Update to save and close the configuration.
    Screen Shot 2022-07-25 at 9.31.10.png




  3. Now navigate to Inputs within the Splunk Add-on for Microsoft Cloud Services app and select Azure Event Hub in Create New Input selection. 

    Define a Name for the Azure Event Hub as Input, select the Azure App Account created before, define the Event Hub Namespace (FQDN), Event Hub Name, let the other settings as default and click Update to save and close the configuration.
    Screen Shot 2022-07-25 at 9.31.24.png




Once the ingestion is processed, you can query the data by using sourcetype=”mscs:azure:eventhub” in search field.
Screen Shot 2022-07-25 at 9.31.35.png

Disclaimer: The use of EventHub and Log Analytics export rule may incur an additional charge. For more information, see Event Hubs pricing and Log Data Export pricing