Dynamic 365 Business central: Overview of Supply chain Management (SCM)

Overview:

Supply Chain Management (SCM) in Business Central helps organizations plan, manage, and control the complete flow of goods—from purchasing raw materials to delivering finished products to customers. It brings all supply chain activities into a single, integrated system, enabling better visibility, control, and efficiency across operations.

Core Supply Chain Capabilities in Business Central

Procurement and Purchasing

Business Central enables businesses to manage vendors, create purchase orders, track deliveries, and control purchasing costs. Automated workflows help ensure timely procurement while maintaining transparency across supplier transactions.

Inventory Management

Inventory management in Business Central provides real-time visibility into stock levels across locations. Businesses can track raw materials, work-in-progress, and finished goods, helping them avoid stock shortages or excess inventory.

Production and Manufacturing

For manufacturing organizations, Business Central supports production planning, bills of materials (BOM), and capacity planning. It ensures that production schedules align with material availability and demand forecasts.

Logistics and Warehousing

Logistics in Business Central focuses on how goods are stored and moved. This includes warehouse operations such as receiving, picking, packing, transfers, and shipments. Efficient logistics ensures faster order fulfillment and reliable deliveries.

Sales Order Processing and Distribution

From sales order creation to shipment and invoicing, Business Central streamlines the entire order-to-delivery process. This ensures customers receive the right products on time, improving service quality and trust.

Demand Planning and Forecasting

Business Central helps businesses plan ahead using demand forecasting tools. By analyzing historical sales data and trends, organizations can make informed decisions on purchasing, production, and inventory levels.

Integration with Microsoft Ecosystem

One of the strongest advantages of Business Central is its seamless integration with other Microsoft tools:

• Power BI for real-time dashboards and supply chain insights

• Microsoft Teams for collaboration across procurement, warehouse, and sales teams

• Excel and Outlook for familiar and efficient data handling

These integrations support data-driven decision-making and improve cross-team coordination.

Benefits of SCM in Business Central

Using Business Central for supply chain management helps organizations:

• Reduce operational costs

• Improve inventory accuracy

• Enhance delivery performance

• Increase process transparency

• Make faster, data-backed decisions