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Streamline Inventory Management with Dynamics 365 Business Central


Introduction to Inventory Management in Dynamics 365 Business Central

No one ever said Inventory Management was an easy part of running a business! However, by using the right ERP Solution will enable you to streamline the inventory management process quickly and easily with D365 Inventory management enabled by Business Central Inventory Control.

This Article looks into some of the key industry best practices around the set-up and maintenance of an effective inventory management process and how Dynamics 365 Business Central will help you to achieve this.

Inventory is the materials or products which a business sells and involves the process of tracking the inventory from the order stage right through to the sale completion and is a key component of any business supply chain cycle.

One of the key objectives of inventory management is to ensure that the correct materials or products are available at the right place and time and in order to achieve this requires having the necessary real-time inventory visibility available to all relevant stakeholders to enable them to know the when, how and where of stock order management.

Some of the key areas for an effective ERP inventory management system will include:

  • Purchase Inventory Management – Products are purchased and delivered either to the warehouse or directly to the frontline point of sale locations.
  • Storage Inventory Management – The Inventory is stored until required by the customer  and the products or materials are then moved across the fulfilment order chain and onto the  shipping and delivery cycle.
  • Inventory Performance Management – for effective Inventory ROI outcomes requires visibility on the level of materials or product for sale.   The finished products are pulled to fulfil the order process and the products then shipped to the customer.

Key features of effective ERP inventory management:

  • Inventory tracking – Keep track of the inventory across the Supply Chain cycle
  • Order management – pricing set-up, issue quotations, track the orders and manage the  returns process
  • Transfer management – Position products to where it brings the best value
  • Purchasing – Generate & manage purchase orders
  • Shipping – Automate the shipping process to help reduce shipping faults, incorrect product delivery or late delivery
  • Reporting & Analysis – Identify trends and patterns across the inventory process to help improve the forecasting & planning of product demand and sales.

How inefficient inventory management can impact business performance & profitability:

Inventory is typically looked at as one of the biggest and most valuable assets of a company and if not managed in a cost effective and efficient way will often be at the core of why some businesses will struggle.

Businesses which do not have  effective inventory management processes will often experience decreases in profitability and overall weakened business performance.  Some of the typical ways this will manifest is through:

  • Stock overload – Having too much stock over and above to meet your business needs can end up costing you money such as incurring additional warehouse space costs. You might also lose stock through spoils or out of date / sell by date expirations.
  • Ineffective lead times – Slow responses and adapting to changing market conditions & demand may result is losing valuable customers to competitors.
  • Limited Stock-piles – Know your customer needs, Customers today expect immediate customer service and rapid response times and if you have insufficient stock will result in you losing sales and possibly customers, as they will look to other suppliers.

What is Dynamics 365 Business Central?

Microsoft Dynamics 365 Business Central is one of the leading ERP Business Management Software Solutions – enabling organisations to deliver effective business continuity with an erp cloud solution that connects operations, finance, sales, service and supply chain to adapt faster and deliver results.

  • Take your business on the go
  • Rapidly deploy either in the cloud or on-premises
  • Be ready and adapt as your business grows
  • Store and transmit data across your systems
  • Extend the solution with industry-specific apps
  • Tailor the software to your specific needs

Inventory Optimisation with Dynamics 365 Business Central:

As an all-in-one cloud ERP business management solution – D365 Business Central will help you to streamline and automate your inventory management.  With Business Central inventory management, you can ensure that your stock is always in check and have real-time visibility across your inventory lines.

What are resource tracking capabilities in Dynamics 365 Business Central

  • Real-Time Stock Tracking – Get an up-to-date view of your stock levels with real-time tracking.
  • Purchasing Re-orders – Automatically reorder stock when stock levels get below a minimum stock level.
  • Warehouse Management – Easily track stock movement across multiple warehouse locations.
  • Inventory Valuations – Track and get fast and accurate views of inventory values with automated stock valuations.
  • Business Central Inventory Reporting & Analysis – Generate detailed reports on tracking inventory levels and other key metrics.

Warehouse Management in Business Central – Key Features

There are two key areas that are important to all businesses that physically move goods in and out of their warehouse:

  • You need to have a real-time overview of inventory levels and item placement in the warehouse.
  • You can quickly and accurately receive, pick, and ship items to meet customer demand.

Implement these features in different combinations to tailor your warehouse processes to meet your business needs including:

  • Bin locations
  • Warehouse shipments
  • Inventory picks
  • Movement worksheet

Inventory Management Best Practices

As your business grows, you may find your e-commerce, logistics, and stock becoming more complicated. It may not feel as easy to record inventory and re-stocks as easy as it was previously – therefore, you need to implement inventory management best practice processes and systems which are equipped to handle and new demands and workloads scenarios.

This is where inventory control comes in – because with the right internal and production controls, you can be sure you are controlling operational costs while simultaneously meeting your customers’ demands.

What are the benefits of ERP inventory management

Controlling your inventory is critical to your business performance, yet almost half of small businesses don’t have effective ERP inventory control systems and processes in place. While it is still possible to maintain a high sales volume, profitability will suffer if you don’t have it.

Customers typically will not wait for back-orders or products with extended ship times, they will simply look to your competitors to fill their orders.  D365 Business Central Warehouse Management provides powerful features and capabilities including:

  • Quality control – Track and manage all aspects of your stock, including quality, to ensure pieces are rotated through your warehouse.
  • Organisational control – Ensure you have enough product to fulfil every order that comes through, as well as safety stock—stock that acts as a buffer to reduce an item being labelled “out of stock.”
  • Accounting accuracy – Keeping an accurate record of your inventory is vital for managing your assets, especially in audits. Knowing your product quantities allows you to know how much of your product is being lost, destroyed, or spoiled and understand the value of your business.


To find the right EPR system, you must understand the needs of the business – to help kick-start the process, start by asking some key questions:

What types of products and quantities to track?

  • Your priorities will depend on your needs – whether the focus is on expiration dates for perishable items, limited supply parts, or seasonal items – planning is key.
  • You will need to plan accordingly for the changing high and low movement scenarios while also keeping a clear focus across your supply chain management.

What features are required for effective inventory?

  • Do you have stock in multiple warehouse locations or just one stock location?
  • Will you need to integrate additional digital business management solutions, and how will this impact the business?
  • Taking control of current and future possibilities enables for an effective inventory control system for now and into the future.

What is the budget for inventory control software solutions?

  • Identify and track everything you need now and for the future, including training and other software related expenditure.
  • Compare those costs to how much time and effort it will take to complete projects
  • What is your anticipated ROI – from reduced man-hours, faster processing output and efficiencies, carrying costs and estimated customer base growth.

Dynamics 365 helps manage inventory and control costs:

Tackle multiple business operations and track sales and financial performance with Dynamics 365 Business Central –  your comprehensive business management solution that connects people and processes for real-time business insights and data-driven decision making.

You might also be interested in learning more about Mobile WMS for D365 Business Central – check it out below.

Mobile Warehouse Management System with Tasklet Mobile WMS for Dynamics 365 Business Central

Tasklet Mobile WMS (Warehouse Management System) in Easy Steps – Tasklet Mobile WMS optimises your warehouse operations. The WMS scanner solution is user-friendly, and quick and easy to implement. Tasklet Mobile WMS integrates directly with the standard functionality of ERP systems such as Microsoft Dynamics 365 Business Central and can be implemented and up and running in two days!

Tasklet Mobile WMS will optimise your warehouse and operations by automating and streamlining all your functionalities such as receive, put-away, count, move, pick, pack, ship, and more.  The Tasklet Mobile WMS is user-friendly and quick to implement, meaning low costs for implementation, upgrade, and maintenance. The ability to function partly or fully offline is a major cost saver for warehouses where complete wifi coverage may be a challenge – check it out @ Mobile WMS for Dynamics 365 Business Central


Contact our D365 Team, we’re here to help! 

To learn more about how your organisation can drive your Business Success with the right ERP Solution – Contact Us Now or why not request a Free 30 Minute Consultation with our Dynamics 365 ERP & CRM Specialists Now


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Microsoft Dynamics 365 ERP & CRM Contact Us
Microsoft Dynamics 365 ERP & CRM Contact Us
Microsoft Dynamics 365 ERP & CRM Contact Us