How Assortment Management in Dynamics 365 Transforms Retail Operations?

Retail companies always have to deal with problems that need effective solutions in order to be successful. Each aspect is important, be it keeping track of inventory or making sure customers are happy. Assortment management in Dynamics 365 makes these tasks easier and gives retailers a powerful set of tools to improve efficiency. Businesses can get better control, make more money, and keep customers happy by using the features of Dynamics 365 Commerce.

An Insight into Assortment Management in Dynamics 365

Assortment management in Dynamics 365 means setting up and overseeing the products that are sold so that they meet customer needs and help businesses reach their long-term goals. It helps retailers keep track of their stock more effectively by making sure that the right products are in the right places. This tool is built into Dynamics 365 Commerce, which works well with other Microsoft ERP systems to make a complete solution for running a retail business.

Retailers can set up product assortments based on the type of shop, the area, or the type of customers. Businesses can stay flexible and meet the needs of a wide range of customers with this feature without having to worry about overstocking or losing out on sales. Assortment management in Dynamics 365 Retail makes sure that inventory strategies are in line with general business goals. This cuts down on waste and increases profits.

Key Benefits of Assortment Management in Dynamics 365

1. Better Accuracy of Inventory

When retailers manage their goods manually, mistakes occur frequently and can hurt their bottom line. Assortment management in Dynamics 365 ensures accuracy by showing inventory levels in real time. Retailers can strategically place products so they don't have overstock or stockout situations, which can hurt sales and the customer experience.

2. Improved Customer Satisfaction

Customers who are happy will buy from you again. With Dynamics 365 Commerce, stores can look at how and why customers buy things. With this information, businesses can make sure that their selections meet the wants of their customers. Dynamics 365 helps retailers stay ahead of buying trends, whether they are specific to an area or seasonal demands.

3. Seamless Integration with Microsoft ERP

When you connect to Microsoft ERP systems, you can see all of your processes at once. Assortment management benefits from real-time data sharing across supply chain, sales, and finance modules. This integration makes sure that stores have the correct data to make good assortment plans and carry them out. When data moves smoothly, decisions are better thought out and have more of an effect.

4. Reduced Operational Costs

It can be hard for retailers to find the right balance between having sufficient inventory and cutting costs. Dynamics 365 Retail features help businesses get the most out of their stock, which cuts down on wasteful spending. By making sure that their assortments match what customers actually want, stores can keep their carrying costs low while still making sure they have enough stock on hand.

How to Implement Assortment Management in Dynamics 365?

There are a few important steps you need to take to make sure that products are offered across all channels when you set up assortment management in Dynamics 365 Commerce. Here's a guide to help you get started:

1. Set Up Channels

Define Channels: Channels represent different sales outlets like brick-and-mortar stores, online stores, or marketplaces. You need to set up at least one channel and configure its options.

Create Organisation Hierarchy: This hierarchy represents the structure of your channels. It helps efficiently assign assortments to groups of stores.

2. Define Products

Add Products: Products can be added manually or imported from vendors. Ensure that products are released to a legal entity before they can be sold or managed in the channel.

3. Create Assortments

• New Assortment: Create a new assortment or copy an existing one. Each assortment should have a unique ID and name.
• Assign Channels: Select the channels or groups of channels to which the assortment will apply. This can be done using the organisation hierarchy.
• Add Products: Include product categories, individual products, or product variants in the assortment. You can also exclude specific products from a category.

4. Publish Assortments

Review and Publish: Once the assortment is set up, it should be checked over to make sure it is correct. Publish the assortment out there so that it can be seen and used on the chosen platforms.

5. Manage Assortments

Update as Needed: Assortments can be changed to reflect new product supply or changes in what channels need. Review and change assortments often to keep them useful.

Key Considerations

• Global and Released Products: Assortments are defined globally and can include channels from more than one legal entity. Products must be released to the right legal organisations, though, before they can be sold.
• Exclusions: You can exclude certain goods or groups from assortments to make the product mix fit your needs perfectly.

If you follow these steps, you can use Dynamics 365 Commerce to make sure that your sales platforms have the right products available. This makes sure that the right products are in the right places, which improves both customer satisfaction and the efficiency of operations.

How Dynamics 365 Commerce Supports Assortment Management?

Advanced Analytics

Dynamics 365 Commerce has powerful analytics that help with managing your inventory. These tools help stores look at past sales data, forecast what trends will happen in the future, and make sure their selections are in line with what customers want. These insights help people make smart choices that reduce risk and increase opportunities.

Multi-Channel Support

These days, there are more ways to shop than just in physical stores. Dynamics 365 Commerce allows multi-channel operations, which means that the products you sell online and in stores will always be the same. This feature makes sure that customers can always find the same products, no matter where they shop.

Real-Time Updates

With real-time updates, stores can quickly adapt to changes in the market. Assortment management in Dynamics 365 makes sure that inventory levels and product availability are always up to date with the latest information. This helps businesses keep customers happy and trusting them.

Challenges in Assortment Management and How Dynamics 365 Addresses Them

Challenge 1: Handling Different Customer Needs

Customers from different areas or groups of people often have different tastes. This diversity makes planning the assortment challenging. Dynamics 365 Commerce solves this problem by letting stores divide their assortments into groups based on location, season, or audience.

Challenge 2: Lack of Data Visibility

When you can't see the data clearly, you often make bad decisions. Dynamics 365 Commerce gives you full access to all of your data. This makes sure that your assortment plans are built on correct and up-to-date data.

Challenge 3: Balancing Cost and Availability

It's hard for retailers to keep inventory prices and product availability in balance. Businesses can align their stock levels with real demand by optimising assortments through Dynamics 365. This cuts down on costs that aren't necessary without sacrificing availability.

Real-World Impact of Assortment Management in Dynamics 365

Assortment management in Dynamics 365 has demonstrated significant positive impacts on retail operations. Notable statistics include:

• Return on Investment (ROI): A Forrester case study reported that leveraging Dynamics 365 Commerce led to a 58% ROI over a three-year period.
• Boost in Sales:  25% increase in sales! The companies that were interviewed Confirmed it easy to change the look and feel of their websites with Microsoft Dynamics 365 Commerce, which made the customer experience more appealing. Putting up new products and deals on the websites was easy. As a result, more people visited and had a better experience with eCommerce, which led to more sales.

These instances of success show how Dynamics 365 can change the way retail businesses operate. Retailers can get real results that affect their bottom line by tackling key problems and making processes run more smoothly.

(Source: A Forrester Total Economic Impact™ Study Commissioned By Microsoft June 2020)

The End Note

The ability to handle assortments in Dynamics 365 is a huge improvement for modern stores. A business can get an edge over its competitors by using the power of Dynamics 365 Commerce, a powerful Microsoft ERP. From better customer satisfaction to more accurate inventory control, the benefits are pretty clear. Retailers can get around problems and use this strong tool to its fullest potential if it is implemented well. Take your store business to the next level by using Dynamics 365 right now.

Ready to Optimise Your Assortment Management with Dynamics 365?

Partner with Dynamics Square, a trusted Microsoft Dynamics 365 implementation partner. Our team of experts will help you leverage the full capabilities of Dynamics 365 to streamline your assortment planning and execution. With Dynamics Square, you can ensure your product offerings meet customer demands efficiently and effectively.

Should you need any help, please send us an email at info@dynamicssquare.co.uk or give us a call at 0207 193 2502.