For distributors, inventory is the largest asset and the warehouse is where margin is protected or lost. Stock that is in the wrong place, counted wrongly or replenished too late costs money every day. Dynamics 365 offers strong warehouse and inventory controls, but they deliver results only when the setup matches how your warehouse actually works.
Choose the right level of warehouse functionality
Business Central offers several levels, set per location:
- Basic receiving and shipping from orders.
- Bins to know where stock is within a location.
- Warehouse receipts, shipments, put-aways and picks as separate documents.
- Directed put-away and pick, where the system suggests bins based on rules.
Finance and Supply Chain Management adds advanced warehouse management, including mobile device flows, license plates, wave processing, configurable location directives and work templates. It suits high-volume or complex warehouses.
Start with the simplest level that meets your needs. Each additional level adds steps for warehouse staff.
Receiving controls
- Receive against purchase orders so quantities and items are checked.
- Record lot or serial numbers and expiry dates at receipt where you need traceability.
- Quality inspection or quarantine for incoming goods if required.
- Put away promptly to defined bins.
Accurate stock: cycle counting
Full physical counts disrupt operations. Cycle counting spreads counting across the year:
- Count fast-moving or high-value items more often.
- In Business Central, physical inventory counting periods can be assigned to items and stockkeeping units.
- In Finance and Supply Chain Management, cycle counting plans and thresholds can create counting work automatically.
- Investigate and document every significant variance before adjusting.
Replenishment
- Reorder policies per item and location: fixed reorder quantity, maximum quantity, order or lot-for-lot.
- Safety stock and lead times maintained, not guessed.
- Planning or requisition worksheets to generate purchase and transfer suggestions.
- Bin replenishment so pick faces are refilled from bulk storage before they run out.
Fulfillment
- Pick methods suited to your order profile: by order, by batch or by zone.
- Shipping documents, carrier labels and tracking.
- Back-order rules and customer communication.
- E-commerce integration, for example through Business Central's Shopify connector.
Financial controls
- Inventory valuation method by item: FIFO, average or standard.
- Item charges for freight, duty and brokerage on imports, so landed cost is accurate.
- Regular reconciliation of inventory value to the general ledger.
- Adjust cost runs scheduled and monitored.
Measures to track
- Inventory accuracy from cycle counts.
- Order fill rate and on-time shipment.
- Inventory turns and slow-moving stock.
- Warehouse productivity, such as lines picked per hour.
Next step
See how we configure Dynamics 365 for distribution businesses, or book a distribution consultation. If you sell in several currencies, our exchange rate guide may also help.