Optimizing Inventory Management with Dynamics 365 Business Central: Overcoming common challenges

September 2 2020

Managing inventory is a significant challenge for many businesses. Without control over inventory, an organization cannot manage its warehouse, control material expenditures, or take other steps to manage and streamline the supply chain across projects.

Microsoft has been steadily improving the inventory management capabilities of Dynamics 365 Business Central, and our clients have been using it to introduce more sophisticated supply chain management tactics for their businesses. Some examples include:

  • Assigning number series and locations for each unique inventory item.
  • Configure the distribution model of the inventory as defined by combinations of different work locations and responsibility centers to vendors, business partners, or employees.
  • Organize your inventory for transfer routes
  • Create inventory cards for new items, create item cards, and define the purpose of the item on each item card
  • Measure available inventory items, stock keeping records, processing ordered items, define categories for new items, and import zip files for the item images.

Improving Supply for Enhanced Inventory Control

Here are a few business challenges that you can address with the improved inventory management using Business Central.

  • Automatically generate purchase recommendations for the items in the inventory  using the information related to demand forecast and availability of the stock in the inventory. Know the right price for stock replenishment. Business Central can use historical data like stock out information and past sales to help optimize the purchase orders of the material.
  • With the holistic view of the inventory, users can define the same or different costing methods for the inventory products. This can be done through
    Inventory Management -> setup -> costing -> Costing versions
    , where they have options to define and activate price for items on the ‘Invent Item Price’ Form.
  • Move items between different warehouse locations. Optimal inventory management can require the movement of goods, but such programs cannot be done without proper tracking. Business Central generates recommendations for its users on moving items to optimize space and pickup processes, improving the entire cycle of purchase, sales, and consumption.
  • Trouble-free and cost-effective experiences while engaging with suppliers. All you need to do is register potential suppliers, process inquiries, and convert the offers to orders. It also makes it easier for the distributors to stay compliant with all the internal and external policies while working on supplies.
  • Optimize storage facilities. Users can set up bins and define zones within the software which is based on the warehouse layout, mapping every rack and shelve. This improves the placement of the items based on their size, type, and capacity of the bins as you can streamline receiving and storage using suitable templates.
  • From inventory management to warehouse management to customer experience When an organization takes advantage of Business Central's inventory management capabilities, they are well-positioned to accelerate the processing of shipments and remove the friction that may occur due to cross-docking.
  • An organization can improve customer orders with real-time data on every item’s quantity, bin, and zone.

Dynamics 365 Business Central offers tools to streamline your inventory by improving the task of registering new items, processing bills of material, defining item attributes, and keeping count of inventory. Here are a few recommendations for firms struggling with inventory-related issues today:

  1. For firms that are constantly facing issues with the inventory loss due to the loss of items that are aged and cannot be part of sales, Business Central can help review the aged inventory through a dashboard where the inventory can be sorted for “over 120 days” to find items that are not good for sales or are not able to count in the sales.
  2. With other inventory management tools, many firms raise issues related to poor inventory insights related to product performance and overall status of inventory. Business Central can help by surfacing information on top-selling products to enhance sales.
  3. For firms that are having trouble keeping up with the stock due to lack of data available on vendor lead time, Business Central can be used to identify top-selling items and find the vendor lead time that must be expected before the high demand stock ends.

Photo by noodle kimm on Unsplash

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About Shawn Sauve

Shawn Sauve is the Vice President and Global Dynamics Practice Lead at DynamicsSmartz – Microsoft Gold ERP and CRM (Customer Relationship Management) Partner. Shawn has been helping organizations grow by aligning the right people processes and technology both within his organization and for the clients from various industries like Manufacturing, Construction, Financial Services, and Information Technology. He is a strategic thinker and visionary who can see the big picture and focus on key issues to accomplished established goals.

Email: sales@dynamicsSmartz.com

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