In Microsoft Dynamics 365, a composable ERP approach means building your business systems from modular building blocks that you can mix, match, and orchestrate as your needs change. Instead of one rigid, monolithic ERP, retailers and consumer goods companies can: - Start with core capabilities like Dynamics 365 Finance and Dynamics 365 Supply Chain Management. - Add specialized microservices (for example, Inventory Visibility or Intelligent Order Management) as their business grows more complex. - Integrate these services with existing e-commerce, logistics, or third-party systems. This approach helps organizations: 1. Adapt faster to disruption and new opportunities The pandemic highlighted how quickly retailers may need to pivot. With a composable setup, companies can stand up new channels or processes quickly. Signature Cosmetics, for example, used Dynamics 365’s composable platform to launch a new e-commerce site in under two months and moved from zero online sales to 20–30% revenue growth in the first few months. 2. Reduce complexity from siloed systems Many retailers operate across multiple countries, divisions, and legacy systems. Dynamics 365 allows them to standardize finance and supply chain processes while still tailoring specific components to local or channel needs. 3. Improve IT agility and lower risk Retailers can modernize step by step instead of taking on a large, high-risk ERP replacement. They can introduce new capabilities where they will have the most impact, then extend over time. Dynamics 365 Supply Chain Management and Dynamics 365 Finance can run as stand-alone solutions or as a tightly integrated, extensible system. This flexibility supports product-centric enterprises that want to move ERP to the cloud, improve processes, and increase agility without losing control over how they operate.

Dynamics 365 helps retailers and consumer goods companies improve inventory visibility and fulfillment through its Inventory Visibility Add-in for Dynamics 365 Supply Chain Management. Key capabilities include: 1. Real-time, global inventory view - The Inventory Visibility Add-in is a highly scalable microservice that tracks on-hand inventory in near real time. - It can connect to multiple third-party systems, so you can pull inventory data from different warehouses, channels, and partners into a single, global view. 2. One pool of inventory for all orders - By creating one global inventory pool, all orders—online, in-store, or from partners—draw from the same accurate data. - This helps increase inventory accuracy and supports better promise dates and availability information for customers. 3. Soft reservation to avoid overselling - The add-in supports soft reservation, which lets you reserve stock for orders without immediately committing it in the core ERP. - This reduces the risk of overselling and the missed sales opportunities that come from canceling or delaying orders due to inaccurate stock levels. 4. Composable, tailored inventory system - Because it is a microservice, the Inventory Visibility Add-in can be composed into your existing architecture rather than replacing it. - You can design a bespoke inventory visibility setup that fits your operating model, whether you are a retailer, direct-to-consumer manufacturer, or distributor. Overall, Dynamics 365 helps organizations rethink how they manage inventory by connecting data across systems, improving accuracy, and supporting more reliable order fulfillment without requiring a high-risk, all-at-once ERP overhaul.

Dynamics 365 helps retailers and consumer goods companies manage returns more efficiently and improve the post-purchase experience by combining composable microservices with logistics integrations. Why this matters: - According to the National Retail Federation (NRF), total returns in the U.S. increased from $428 billion in 2020 to $761 billion in 2021—more than a 65% increase. - A 2021 Incisiv survey of over 6,000 consumer transactions found that 73% of returns were caused by retailer-controlled actions or inactions. This has pushed many brands to focus on both preventing avoidable returns and reducing the cost and friction of the returns they must support. How Dynamics 365 helps: 1. Intelligent Order Management with FedEx integration - Dynamics 365 Intelligent Order Management integrates with FedEx as part of a multiyear collaboration. - Starting with a preview launched on April 30, 2022, this integration enables: - Access to over 60,000 FedEx drop-off locations. - Convenient at-home pick-up options. - Paperless, label-less returns using QR codes. - These capabilities are available to Dynamics 365 Intelligent Order Management users at no additional cost. 2. Composable returns management apps - The FedEx integration is delivered as a composable microservice that plugs into existing e-commerce applications. - Retailers can offer guided, self-service returns flows that capture just enough information to process refunds or exchanges. 3. Better customer and operational outcomes - Customers get a simple, intuitive returns experience: choose a drop-off point, scan a QR code, and complete the return with minimal effort. - Retailers can consolidate multiple return items and locations into a single shipment back to the warehouse, reducing handling and logistics costs. Example: FOCO FOCO, a manufacturer of sports and entertainment merchandise, uses Dynamics 365 to support a seamless returns experience. By leveraging the FedEx integration returns management app, FOCO can: - Offer customers a guided self-service returns process. - Simplify logistics by consolidating returns into efficient shipments. In combination with core ERP capabilities in Dynamics 365 Supply Chain Management and Dynamics 365 Finance, these composable solutions help retailers reimagine the post-purchase journey—making returns easier for customers while reducing the operational burden for the business.