Supply chain operations involve the coordination of goods, services, and data from initial sourcing to final delivery. Modern business environments introduce new challenges such as rapid demand changes, logistical constraints, and compliance pressures. Managing these elements requires a system that supports coordination, data visibility, and automated workflows.

Microsoft Dynamics 365 Business Central offers a connected platform designed for small and midsize companies. It supports a range of supply chain functions—from inventory handling to warehouse activity—while enabling collaboration between departments and sites. The system integrates with Microsoft tools like Teams, Excel, and Power BI, providing a consolidated workspace for planning and execution.

With cloud deployment, Business Central ensures accessibility across devices and locations—especially useful for distributed teams or field-based operations. Real-time data syncing means every change—be it stock adjustments or shipping status—is visible to the right users at the right time.

Key Capabilities in Supply Chain Management

Inventory

Business Central enables users to manage inventory across multiple sites with support for tracking through serial, lot, or package numbers. Mobile barcode scanning reduces the risk of entry errors. The platform can also handle items with expiration dates and warranty specifications.

Reorder policies such as minimum/maximum quantity, lot-for-lot, and fixed reorder quantity are supported, helping supply planners define strategies that reflect demand patterns. Business Central also allows classification of inventory by location, variant, and unit of measure, enhancing flexibility and accuracy.

👉 Tracking with serial, lot, and package numbers

Procurement and Sales Coordination

Vendor information, pricing agreements, and approval steps are all part of the purchasing features. Automated order suggestions based on demand calculations help maintain optimal stock levels. The system can create blanket purchase orders for recurring needs, manage lead times, and track vendor performance.

Sales tools include quote creation, order processing, and integration with customer profiles for tracking activities and communication. Sales lines can be linked to inventory availability, enabling customer service teams to provide accurate delivery expectations.

👉 Inventory planning and replenishment

Production and Storage

Manufacturing tools include the setup of production orders, bills of materials (BOMs), and capacity plans. Organizations can manage both made-to-stock and made-to-order workflows. Routings can be assigned to define machine and labor operations, helping ensure accurate cost allocation and schedule predictability.

In the warehouse, users can control receiving, storage, picking, and relocation of goods. The system supports directed put-away and pick, bin-level management, and cross-docking. These tools can increase throughput and reduce the risk of misplacement, especially in high-volume environments.

👉 SCM updates in 2025 release wave 1

Monitoring Operations with Business Central

With its built-in data analysis features, Business Central supports measurement of supply-related performance such as:

• Accuracy of outbound orders
• Rate of inventory turnover
• Fulfillment percentages
• Time between order and shipment

Business Central also supports integration with Power BI and includes an “Analysis Mode” that enables on-the-spot comparisons directly from list views. These reports help stakeholders identify inefficiencies and track trends over time.

👉 Use Analysis Mode

Integration with Third-Party Systems

Business Central provides a suite of APIs and web services that support connection with external logistics providers, e-commerce platforms, or specialized manufacturing systems. For example, businesses can link Business Central with Shopify, Amazon, or custom transportation management software (TMS).

Using Microsoft Dataverse, Power Automate, or Azure Logic Apps, companies can establish automated flows such as:

• Syncing tracking numbers
• Updating shipment status
• Consolidating vendor invoices

This extends Business Central’s utility without introducing redundant data entry or error-prone processes.

How to Make the Most of Business Central for SCM

Apply the following approaches to improve outcomes from your system:

• Review inventory records and transaction logs frequently to detect inaccuracies or stock imbalances.
• Enable forecast tools to anticipate shifts in demand. The Sales and Inventory Forecast extension uses machine learning to generate purchase recommendations.
• Set up workflows for purchase approvals, item requisitions, and quality checks.
• Train staff on features such as mobile scanning, role-based dashboards, and exception reports.
• Segment inventory by ABC classification to prioritize management efforts.

👉 Forecasting extension: Sales and Inventory

Addressing Implementation Hurdles

Adopting Business Central may require attention to areas such as:

• Migrating records from previous systems: Microsoft provides assisted setup guides and data templates for customers migrating from legacy tools or Excel.
• Customizing fields or processes: Business Central supports personalization through AL code or Power Apps.
• Training personnel: Provide structured onboarding for each role—procurement, sales, warehouse, and finance—to ensure user confidence and productivity.

It’s helpful to work with a Microsoft partner who understands your industry and operations. They can guide process mapping, configuration, testing, and training efforts.

👉 Free learning resources from Microsoft

Planning for Long-Term Success

Business Central receives feature updates twice a year. Staying current ensures access to:

• New tools
• Performance enhancements
• Security patches

Organizations are encouraged to:

• Join preview programs to test features before release
• Subscribe to the release planner to anticipate changes
• Conduct internal audits quarterly to evaluate supply chain improvements

Taking an iterative approach allows organizations to adapt configurations as business conditions evolve.

Microsoft Dynamics 365 Business Central offers the building blocks for efficient supply chain management. Whether you're tracking stock, issuing purchase orders, or managing production lines, the system brings together the tools required to stay organized and responsive.

With centralized control, built-in automation, and flexible integration, teams are better prepared to handle today’s operational demands and scale as the business grows.