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Need Help with Implementing Dynamics 365 for Improved Inventory Management

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Posted on by CU10110906-0 6

Hi everyone,

I’m currently working on a project to improve our frlegendsapk.org inventory management process using Dynamics 365, but I could use some guidance on best practices and implementation tips. Our main goals are to streamline inventory tracking, automate stock level alerts, and reduce manual errors.

Here are a few specific questions I have:

  1. What’s the best way to configure automatic reorder points in Dynamics 365?
  2. Are there any recommended integrations for inventory barcode scanning within Dynamics?
  3. What are some ways to create custom reports on stock movement and item aging?

Any advice, resources, or documentation links would be greatly appreciated!

Thank you in advance!

Categories:
Microsoft Dynamics CRM
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  • Verified answer
    Saif Ali Sabri Profile Picture
    Saif Ali Sabri 2,346 Super User 2025 Season 2 on at
    Need Help with Implementing Dynamics 365 for Improved Inventory Management

    Improving inventory management with Dynamics 365 is a great way to streamline processes and reduce errors. Dynamics 365, specifically Dynamics 365 Supply Chain Management (part of the Dynamics 365 suite), offers powerful tools to help with inventory tracking, automated stock alerts, and reporting. Below are best practices, recommendations, and tips on how to achieve your goals.

    1. Configuring Automatic Reorder Points in Dynamics 365

    To set up automatic reorder points in Dynamics 365, you’ll use the Master Planning and Inventory Management modules.

    Steps to Configure Automatic Reorder Points:

    • Set Up Coverage Groups: Coverage groups determine how Dynamics 365 calculates replenishment for items.
      1. Go to Master Planning > Setup > Coverage > Coverage groups.
      2. Create a new coverage group or edit an existing one, and set parameters like minimum, maximum, and safety stock.
    • Define Minimum and Maximum Stock Levels: For each item, set the minimum (reorder point) and maximum levels to trigger replenishment actions.
      1. Go to Released products (under Product information management).
      2. Select the item and open Plan > Item coverage.
      3. Define Minimum and Maximum inventory values.
    • Run Master Planning: Once your coverage groups and minimum levels are set up, run Master Planning to generate planned orders based on current inventory levels. You can set Master Planning to run automatically on a schedule to continuously monitor stock levels and create planned orders as needed.

    Additional Tip: If you want to enable more advanced scenarios, such as forecasting-based replenishment, use Demand Forecasting in Master Planning to predict and plan future stock needs based on historical data.

    2. Recommended Integrations for Barcode Scanning in Dynamics 365

    Dynamics 365 has native capabilities for warehouse management that include barcode scanning. Additionally, there are several third-party solutions available to enhance barcode scanning functionality:

    Options for Barcode Scanning:

    • Dynamics 365 Warehouse Management Mobile App: Microsoft provides a Warehouse Management app designed for Dynamics 365 Supply Chain Management. This app supports barcode scanning and can be used on mobile devices (such as Android devices) in the warehouse to manage inventory, pick/pack items, and perform stock counts.
      • You’ll need to configure the Warehouse Management module in Dynamics 365 and set up mobile device menus to define the tasks workers can perform using the app.
    • Third-Party Barcode Scanning Solutions:
      • SKUVault: This is a third-party warehouse management system that integrates with Dynamics 365 and includes advanced barcode scanning features.
      • Insight Works - Warehouse Insight: This is another barcode scanning solution that integrates directly with Dynamics 365. It offers features like mobile device compatibility and supports all standard warehouse operations.
      • RF-SMART: RF-SMART is a popular option for barcode scanning, specifically designed for Microsoft Dynamics 365. It allows for barcode scanning across receiving, picking, and shipping processes.

    Tip: For simpler implementations, you can also consider using Power Apps to create a custom barcode scanning app that reads data and updates inventory records in Dynamics 365 via Power Automate.

    3. Creating Custom Reports on Stock Movement and Item Aging

    Dynamics 365 Supply Chain Management includes several standard reports for inventory management, but you can also create custom reports for more specific needs, such as tracking stock movement and item aging.

    Options for Creating Custom Reports:

    • Power BI Integration: Power BI is an excellent tool for building custom inventory reports in Dynamics 365. You can connect Power BI to your Dynamics 365 data and build reports for stock movement, aging, reorder frequency, and more.
      • For example, create a Stock Movement Report by tracking inventory transactions and movements (like receipts, issues, transfers).
      • An Item Aging Report can show how long items have been in inventory, grouped by aging categories (e.g., 0–30 days, 31–60 days, etc.).
    • Embedded Analytical Workspaces: Dynamics 365 has analytical workspaces with embedded Power BI capabilities, where you can customize views and add Power BI visuals to specific workspaces.
      • For inventory tracking, you can use the Inventory Visibility Add-in, which provides real-time visibility into inventory data across multiple locations.
    • Electronic Reporting (ER): If you need custom, exportable reports that are more complex, consider using the Electronic Reporting (ER) tool within Dynamics 365. It allows you to define your own reporting formats and extract data directly from Dynamics.
    • Advanced Warehousing Reports: The Warehouse Management module includes standard reports for stock movement and aging, but these can be customized as needed.

    Recommended KPIs for Inventory Management Reports:

    • Inventory Turnover Rate: Measures how frequently inventory is used or sold within a specific period.
    • Days Sales of Inventory (DSI): Calculates the average time inventory is held before being sold.
    • Stock Aging: Tracks how long items remain in inventory, which helps with inventory decisions such as markdowns or write-offs.
    • Stock Levels by Location: Shows the current stock levels at different locations or warehouses to support transfer and replenishment decisions.

    Additional Resources and Documentation Links

    Summary

    1. Automatic Reorder Points: Use Coverage Groups and Master Planning to set reorder points and automate stock level alerts.
    2. Barcode Scanning: Use Dynamics 365’s Warehouse Management mobile app or consider third-party integrations like RF-SMART or Warehouse Insight for enhanced functionality.
    3. Custom Reports: Use Power BI for stock movement and aging reports, or explore Electronic Reporting (ER) and Inventory Visibility Add-in for custom reporting needs.

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