Buy Smarter, React Faster: How Dynamics 365 Business Central Helps You Beat the Squeeze

In today’s volatile global economy, Microsoft Dynamics 365 Business Central users are being challenged to buy smarter than ever before. With tariffs in flux, inflation continuing to squeeze margins, and supply chain disruptions far from over, the way organizations source products and manage vendor relationships has a direct impact on their bottom line.

Fortunately, Business Central includes several powerful but often overlooked features that can help: Vendor Catalogs, Item Substitutions, and Vendor Prices. Each of these offers a strategic opportunity to mitigate risk, improve purchasing agility, and maintain cost accuracy—even as conditions change.

These features may not be new, but how we use them today matters more than ever. 

Vendor Catalogs: Expand Options Without Overloading the System

In unpredictable markets, flexibility is everything. Your usual supplier might face new tariffs, delayed shipments, or discontinued stock. Business Central’s Vendor Catalog feature enables users to maintain a list of all items a vendor can provide—without creating permanent inventory records.

Instead of flooding your item list with hundreds of rarely ordered products, you can browse vendor offerings on demand and convert items into inventory only when needed. This gives buyers quick access to alternatives when circumstances require a shift—such as sourcing a similar item from a vendor not affected by new tariffs or trade restrictions.

Vendor Catalogs provide a streamlined, built-in way to stay flexible without cluttering your item list.

Item Substitutions: Build Resilience Into Your Fulfillment Strategy

Tariffs don’t just increase costs—they often force businesses to rethink sourcing altogether. When an imported item becomes prohibitively expensive or unavailable, having pre-defined Item Substitutions in place can keep orders flowing and customers satisfied.

Business Central allows you to define one-way or two-way relationships, ensuring that the system can suggest appropriate alternatives when your primary choice isn't available. This functionality can be used both in sales and purchasing scenarios.

For example, if a tariff suddenly impacts the cost of a key component, the system can propose a locally sourced alternative already marked as a valid substitute. This is a critical step in building a procurement process that’s responsive, not reactive.

Vendor Prices: Maintain Margin with Automated Cost Control

Accurate cost management has never been more critical. Whether it's due to tariff increases, supply chain premiums, or shifting vendor terms, the price you thought you were paying may no longer be valid.