Partner Stories

Warehouse Automation with Dynamics 365: How Distributors Can Increase Productivity Without Hiring More Staff?

Published by Dynamics Square USA

Warehouse operations are becoming harder to manage as order volumes rise, customer expectations tighten, and labor costs continue to climb. For many distributors, hiring more staff isn’t always possible or sustainable. This is where warehouse automation powered by Dynamics 365 becomes a game-changer.

With Microsoft Dynamics 365, distributors can streamline workflows, eliminate manual tasks, and achieve higher productivity with the same workforce. 

Whether you're facing labor shortages, fulfillment delays, or rising operational costs, automation helps you stay competitive without adding headcount.

Why Distributors Struggle with Productivity Today

Growing distributors face several operational challenges:

  • Manual processes slow down picking, packing, and replenishment
  • High dependency on labor makes operations vulnerable to shortages
  • Disconnected systems create errors and delays
  • Limited visibility across warehouse tasks affects decision-making
  • High fulfillment expectations demand faster turnaround times

To stay ahead, distributors need automation not more people.

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How Dynamics 365 Enables Warehouse Automation

Microsoft Dynamics 365 streamlines warehouse operations through intelligent workflows, real-time data, and automated task execution.

Here’s how it delivers more efficiency without additional staff.

1. Automated Order Processing

Dynamics 365 automatically creates and assigns warehouse tasks based on:

  • Inventory availability
  • Bin locations
  • Worker skills or equipment
  • Shipping priorities

This ensures orders move through the warehouse faster with fewer manual touchpoints.

Impact:
✔ Faster fulfillment
✔ Fewer errors
✔ Reduced manual data entry

2. Smart Picking and Packing Automation

With support for mobile scanning, guided navigation, and real-time updates, workers always know exactly what to pick and where to go next.

Tools like:

  • Wave picking
  • Cluster picking
  • Optimized picking routes

…minimize travel time and eliminate guesswork.

Impact:
✔ Higher picking speed
✔ More orders processed per shift
✔ No need for additional labor

3. Real-Time Inventory Tracking

Dynamics 365 continuously tracks:

  • Stock movements
  • Bin transfers
  • Item consumption
  • Cycle counts

Automation ensures accurate inventory without manual reconciliation.

Impact:
✔ Reduced stockouts
✔ Fewer fulfillment delays
✔ Lower carrying costs

4. Automated Replenishment

The system forecasts demand and replenishes stock automatically based on:

  • Minimum/maximum levels
  • Order trends
  • Seasonal patterns
  • Sales velocity

Impact:
✔ Prevents bottlenecks
✔ Keeps warehouse flow uninterrupted
✔ Cuts repetitive manual checks

5. Workflow Automation Across the Warehouse

Dynamics 365 automates repetitive tasks like:

  • Purchase order creation
  • Transfer order generation
  • Quality checks
  • Shipping label printing
  • Task assignment

The system does the admin work, your team focuses on execution.

Impact:
✔ Decreased workload
✔ Improved accuracy
✔ More time for value-driven tasks

6. Automated Insights for Better Decision-Making

AI-driven dashboards help warehouse managers quickly identify issues like:

  • Low stock
  • Delayed orders
  • Overloaded workers
  • Inefficient picking routes
  • Equipment downtime

Impact:
✔ Faster problem resolution
✔ Proactive planning
✔ Higher throughput

7. Mobile-First Productivity Boost

Dynamics 365’s mobile app allows workers to:

  • Scan barcodes
  • Update tasks instantly
  • View real-time instructions
  • Reduce errors
  • Communicate faster

Impact:
✔ 30–40% faster task completion
✔ No dependency on desktop systems

Unsure where automation fits in your warehouse?
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Key Benefits for Distributors

By automating warehouse operations with Dynamics 365, distributors can:

  • Scale operations without hiring extra staff
  • Increase fulfillment speed and accuracy
  • Reduce operational costs
  • Improve inventory visibility
  • Enhance customer satisfaction
  • Eliminate manual bottlenecks
  • Reduce overtime and rework

Why Automation Is Essential for Growing Distributors

As distributors expand, their warehouse complexity grows. Relying only on labor becomes unsustainable. Dynamics 365 provides the modern automation backbone needed to:

  • Support higher order volumes
  • Reduce labor pressure
  • Enable multi-warehouse operations
  • Integrate warehouse + ERP in one system

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Conclusion: Boost Warehouse Productivity with Dynamics 365

If your warehouse is struggling to keep up but hiring more staff isn’t an option, warehouse automation with Dynamics 365 gives you a smarter, scalable solution.

It empowers your existing workforce, automates manual tasks, and helps your warehouse operate with greater accuracy, speed, and efficiency.

Dynamics 365 Finance and Operations Warehouse Management