Business Central Demand Forecast: Solving Fulfillment Headaches with Smarter Planning

When it comes to order fulfillment, the biggest headache for businesses is often inventory uncertainty. Stockouts lead to missed sales and frustrated customers, while excess inventory ties up capital and storage space. The key to balancing supply and demand? Better forecasting.

Fortunately, Microsoft Dynamics 365 Business Central, combined with the Enhanced Forecasting Worksheet, provides a powerful demand forecasting solution that eliminates guesswork and gives businesses greater control over their stock levels, reorder points, and replenishment strategies.

Why Traditional Forecasting Falls Short

Business Central’s built-in forecasting tools provide basic sales and inventory forecasts but don’t always translate into actionable insights.

• Static Forecasts – Standard forecasting in Business Central generates demand predictions, but they aren’t dynamic or customizable enough for real-world inventory management.
• Lack of Planning Integration – While Business Central provides a simple forecast fact box, it doesn’t automatically adjust reorder points or safety stock.
• Manual Adjustments Required – Businesses often rely on spreadsheets or external calculations to tweak forecasts before applying them to their fulfillment processes.

How the Enhanced Forecasting Worksheet Fixes These Gaps

The Enhanced Forecasting Worksheet expands Business Central’s forecasting capabilities by incorporating Azure AI-powered predictions and user-defined planning parameters. This means businesses can forecast demand and automate replenishment planning based on real-world conditions.

Key Benefits:

• Smarter Forecasting – Uses Microsoft’s Azure AI models to predict sales based on historical data.
• Customizable Planning – Set safety stock, reorder points, and maximum inventory dynamically using calculated expressions.
• Better Accuracy – Adjust forecasts with confidence levels and multiple forecasting algorithms to match demand fluctuations.
• Faster Action – Directly updates demand forecasts and item planning parameters in Business Central, eliminating manual work.
• Scalable Growth – Adapts to growing inventory needs, making it perfect for SMBs and expanding operations.

How It Works in Business Central

1. Configure Forecast Settings

   1.1. Navigate to Enhanced Forecast Setup in Business Central.

   1.2. Select the Sales and Inventory Forecast Setup page and adjust the parameters.

2. Define Item Planning Expressions

   2.1. Use predefined expressions or customized formulas for:

   2.2. Safety Stock = Average daily usage × Lead time

   2.3. Reorder Point = Forecasted daily demand × Lead time

   2.4. Maximum Inventory = Reorder quantity × Storage capacity

3. Run the Forecast

   3.1. Select items, locations, and categories to forecast.

   3.2. Choose a forecast period (weekly, monthly, quarterly).

   3.3. Click Calculate Forecast to process data through Microsoft’s Cortana AI model.

4. Update Demand Forecasts & Planning

   4.1. Review the AI-generated forecast results.

   4.2. Push results into Business Central’s demand forecast for MRP/MPS planning.

   4.3. OR update item planning fields to automate stock management.

Solving Real Fulfillment Challenges

Problem: Stockouts & Unfulfilled Orders

Solution: The Enhanced Forecasting Worksheet predicts demand more accurately, reducing last-minute shortages.

Problem: Overstock & Excess Holding Costs

Solution: Dynamic reorder points prevent over-ordering, ensuring capital isn’t wasted on stagnant inventory.

Problem: Manual Forecasting & Spreadsheets

Solution: Automates calculations directly within Business Central, eliminating spreadsheet dependencies.

Problem: Growing Inventory Complexity

Solution: Scales with business expansion, handling multi-location forecasting with ease.

The Competitive Edge

Unlike other forecasting tools, the Enhanced Forecasting Worksheet:

• Uses multiple forecasting algorithms – Tailors demand predictions to real-world trends.
• Directly integrates with Business Central – No need for third-party forecasting software.
• Supports advanced AI modeling – Leverages Microsoft’s Azure Machine Learning.
• Provides full customization – Businesses can define their reorder and inventory rules.

For businesses struggling with unreliable demand forecasts, stockouts, or excess inventory, the Enhanced Forecasting Worksheet offers a smarter, more efficient, and fully integrated solution within Business Central.

Ready to transform your inventory management? Upgrade to Enhanced Forecasting Worksheet today!