Inventory, Warehousing, and Transportation: Managing It All in Business Central ERP solution

What is the role of Business Central for Inventory Management? So, before we get into the specifics of this solution, let’s learn about the need and importance of inventory management, especially for manufacturing firms.

The manufacturing industry, nowadays, is all about inventory management, warehousing and transportation. As most industries have evolved using technology over time, manufacturing is also not left untouched. Keeping track of inventory, organising warehouses, and managing deliveries is not as easy as it seems to handle, especially when things start to grow rapidly. If even one part breaks down, you can end up with delays, wrong shipments, or frustrated customers.

Such a situation can be avoided by digitising and automating inventory and warehouse processes. Small and mid-sized businesses (SMBs) often struggle with outdated systems that can’t handle real-time data, flexible inventory needs, or integrated logistics.

That’s why more businesses are switching to cloud-based ERP systems for better management. In fact, according to Gartner, by 2026, over 75% of midsize businesses are expected to move to cloud ERPs to improve how they run things day-to-day.

Microsoft Dynamics 365 Business Central is one of the top choices in this space. It’s built to help businesses stay on top of their stock, manage warehouse operations, and make sure deliveries are on time. In this blog, we’ll go over how Business Central handles these areas and why it’s a smart option for growing businesses.

Business Central for Inventory Management

Inventory is one of those things that’s easy to overlook until it goes wrong. Too much stock, and you tie up your money. Too little, and you can’t fulfil orders.

Here’s how Business Central helps you stay on top of it.

1. Live Inventory Updates

You can check stock levels anytime, across all locations. No guessing or digging through spreadsheets.

2. Automatic Restocking

Set up minimum stock levels for each item. When inventory gets low, the system creates a purchase order automatically. This means you don’t run out or overstock.

3. Track Inventory Across Locations

Whether you have one warehouse or several, you can manage inventory across all sites from one place.

4. Use of Barcodes

Business Central works with barcode scanners so you can scan items when receiving, moving, or shipping them. It saves time and keeps things accurate.

5. Serial and Lot Number Tracking

If you need to track specific items like high-value products or regulated goods, Business Central lets you track by serial or lot numbers easily.

Business Central for Warehousing Management

Whether your business is working from a single backroom or multiple large warehouses, keeping things organised is key. Business Central supports Warehousing Management for both simple and more advanced warehouse setups.

1. Organise by Bins and Zones

You can break your warehouse into zones and bins so it’s easier to find, store, and move items.

2. Separate Warehouse Documents

Use warehouse-specific receipts and shipment documents so your team knows what’s coming in and going out. It keeps things clear between warehouse and office teams.

3. Manage Pick and Put-Away Tasks

Assign tasks to workers for picking or putting away items. You can do this manually or let the system assign tasks based on set rules.

4. Do Regular Stock Checks

Instead of doing a full inventory count once or twice a year, you can use cycle counting to check small groups of items more often.

5. Automatic Updates from Sales and Purchases

When a sales or purchase order is created, your warehouse team is automatically updated. No need for emails or phone calls to let them know.

Business Central for Transportation

Business Central for Transportation may not be a full logistics system, but it gives you everything you need to manage deliveries and shipping, especially when connected with outside shipping tools.

1. Plan Deliveries Easily

You can schedule pickups and deliveries directly in the system. Whether it’s in-house drivers or external carriers, everything can be tracked.

2. Shipping Integrations

Connect with popular carriers like FedEx or UPS to get live rates, print labels, and track shipments without switching platforms.

3. Track Freight Costs

Record shipping charges and track delivery costs on every order. It helps you keep an eye on margins.

4. Keep Customers in the Loop

Automatically send updates about order status and estimated delivery times to your customers. It makes for a better experience on their end.

How Everything Connects in One System?

What makes Business Central stand out is how it ties everything together. Sales, inventory, warehouse, and delivery all work inside the same system.

Let’s walk through a quick example:

• A sales representative enters a new order.
• The system checks stock levels automatically.
• The warehouse is alerted to pick and pack the items.
• Delivery is scheduled, and shipping labels are printed.
• The finance team sees all the details and sends an invoice.

All of this happens without manual steps or switching between systems. It’s fast, efficient, and accurate.

Real-World Use Cases by Various Industries

Many industries are already seeing measurable results by using Business Central to manage their inventory, warehousing, and shipping operations. Below are a few real-world examples showing how different sectors make use of the system:

Retail

Retailers use Business Central to manage stock across stores and online. It helps with pricing, returns, and syncing promotions.

Manufacturing

Manufacturers benefit from tools that handle raw material tracking, production schedules, and finished goods inventory.

Distribution

Distributors use Business Central to handle high-volume shipments, manage supplier orders, and track deliveries in real time.

Healthcare

Track medical supplies with batch and expiration dates, keep records for audits, and make sure critical stock doesn’t run out.

Top Benefits for Businesses

Choosing Business Central as your ERP system doesn’t just make things easier, but it brings clear improvements across the board. Here are the top benefits businesses report after implementing the solution:

• Clear Inventory Visibility: Know what’s in stock and where it is, anytime.
• Fewer Errors: Barcode scanning and automation reduce mistakes.
• Faster Delivery Times: Orders move from sales to shipping without delay.
• Lower Costs: Avoid extra stock and reduce waste.
• Better Service: Customers get their orders on time with fewer problems.

These benefits help companies not only stay organised but also improve how they serve customers and reduce overhead.

How to Get Started with Business Central?

If you’re thinking about using Business Central, here’s what the process usually looks like:

• Evaluate Your Needs: What are your biggest issues right now? Inventory mistakes? Delays?
• Work with a Partner: A Microsoft partner like Dynamics Square can help you get set up based on your business.
• Move Your Data: Bring over your current inventory and customer data.
• Train Your Team: Get staff comfortable using the new system.
• Go Live: Start using Business Central, with support on hand when needed.

Final Words

Inventory and warehouse management are evolving with technology advancements. Tracking inventory, warehouse tasks, and deliveries should not be a confusing or time-consuming task. With Microsoft Dynamics 365 Business Central, everything works together. It can take care of each stage of the supply chain, whether it is inventory management, warehousing, or transportation. From the moment the product comes into stock until it reaches your customer.

Is your business growing? Is your current system slowing you down? Business Central can help you stay effective and manage everything in one place without adding extra work. Business Central enables more control, better visibility, and fewer errors. So your team can focus on important tasks and not waste time on repetitive tasks.

Need Help?

Thinking about using Business Central? We can help.

At Dynamics Square, we’ll set up Business Central based on your business requirements. Whether it’s better inventory control or faster shipping, we will help you implement the Business Central setup for your business.

Connect with Dynamics Square.