End-to-End Shipment Management in Dynamics 365 Business Central: From Order to Delivery

Running a business that depends on shipping orders is never simple. Packages get delayed, stock gets misplaced, and sometimes the delivery costs more than the product itself. According to a survey by Convey, nearly 84% of customers won’t return to a retailer after just one bad delivery experience. That means shipment management isn’t just a back-office process — it’s the front line of customer satisfaction.

Every order carries a promise, and breaking that promise often costs more than money. Dynamics 365 Business Central shipment management helps keep that promise by tying every step of shipping into one connected flow. Missed deliveries, misplaced stock, or unexpected costs can push customers away—Convey found that 84 percent of them walk after a single bad experience. That makes shipping not only a supply chain task but also the most visible part of customer trust.

Microsoft Dynamics 365 Business Central doesn’t just help in keeping financial books clean, but it also connects the dots from order to delivery, making shipment management part of the bigger supply chain story.

In this blog, we’ll see why shipment management matters, how Business Central can help, and what businesses gain when they bring automation, tracking, and smarter logistics into one system.

Why Shipment Management Matters for Modern Businesses

Every order is a promise. If it’s delayed or compromised, or lost, that promise is also broken. Shipment management is the system that keeps those promises.

• Customers expect fast and accurate deliveries, often with real-time tracking.
• Rising costs in fuel, storage, and labour put extra pressure on logistics teams.
• Businesses juggling multiple carriers, warehouses, and sales channels often struggle to stay on top.

Good shipment management reduces delays, cuts costs, and most importantly, keeps customers happy. With the right setup, it also stops teams from wasting hours chasing spreadsheets or fixing mistakes.

Shipment Tracking in Dynamics 365 Business Central

One of the biggest frustrations for businesses is not knowing where an order is once it leaves the warehouse. Business Central changes that.

• It gives a live view of shipments across carriers and warehouses.
• Tracking details flow back into the system, so customer service teams don’t have to call carriers.
• Any delays or changes trigger alerts so you can act before the customer complains.

Think of it as a control tower for your deliveries. Instead of blind spots, you see the whole journey.

Streamline Shipments with Business Central

Many businesses still use separate systems for orders, warehouse tasks, and transportation. That’s where errors creep in. Business Central simplifies things by keeping it all under one roof.

• Orders link directly with warehouse picking and packing.
• Shipment details flow into invoicing automatically.
• Managers can see the cost of each delivery, helping them negotiate with carriers.

This streamlining cuts manual work. For example, a mid-size distributor in the UK saved 15 hours a week simply by removing double entry between systems after moving to Business Central.

Business Central Transportation Management

Transportation is often the most expensive part of order fulfilment. Business Central makes it easier to manage by connecting transportation with finance and stock.

• Assign shipments to different carriers and compare costs.
• Plan delivery routes to save fuel and time.
• Track which carriers perform well and which cause delays.

It’s not just about getting packages out the door. It’s about getting them there on time and at the lowest possible cost.

Delivery Management in Dynamics 365 Business Central

The last mile of delivery can make or break the customer experience. Business Central helps here too.

• It shows delivery status in real time, so staff can update customers with confidence.
• Proof-of-delivery data can be captured and stored directly in the system.
• If there’s a failed delivery, the order can be flagged for re-dispatch right away.

This kind of control turns delivery management into a smoother process, one where fewer mistakes slip through and customers feel looked after.

Key Features of Shipment Management in Business Central

Business Central comes with several features that cover shipment management end to end:

• Inventory visibility: See what’s in stock before promising a delivery date. No more selling items that aren’t available.
• Automated order processing: Orders move from sales to shipping without manual re-entry.
• Warehouse management: Track picking, packing, and storage movements.
• Carrier integration: Connect with multiple carriers and update customers automatically.
• Cost tracking: Monitor delivery costs per order to spot areas for savings.
• Reporting: Get insights on delays, costs, and order accuracy.

Instead of patching together different tools, Business Central brings it all into one workflow.

Best Practices for Order Fulfillment with Dynamics 365 Business Central

Even with great software, businesses need good practices to get the most out of shipment management. Here are a few:

• Keep inventory data accurate: Regular stock checks mean fewer surprises during fulfilment.
• Standardise packing and labelling: Clear processes reduce mistakes in the warehouse.
• Use real-time tracking: Keep customers in the loop without extra manual effort.
• Automate reorders: Don’t wait until shelves are empty. Use Business Central’s reorder points.
• Review delivery metrics: Track on-time rates, costs, and error rates regularly.

By combining software and good practices, businesses avoid the common “lost in the system” issues that hurt customer trust.

Dynamics 365 Implementation for Shipment Management

Implementation is often where businesses worry. They know ERP is powerful but fear long projects and disruptions. The truth is, with the right partner, setting up Business Central for shipment management can be smooth.

What to expect:

• Discovery: Reviewing current processes, pain points, and goals.
• Configuration: Setting up order, inventory, and shipment workflows in Business Central.
• Integration: Connecting carriers, warehouses, and finance systems.
• Training: Ensuring staff know how to use dashboards, alerts, and reports.
• Support: Continuous help to optimise after go-live.

Companies that rush implementation often struggle. Those who take the time to map processes usually see results faster.

Cost Savings and ROI with Shipment Automation

Why invest in shipment automation? Because the savings add up.

• Lower labour costs: Fewer manual tasks mean teams focus on higher-value work.
• Fewer errors: Mistakes like wrong addresses or duplicate shipments drop sharply.
• Cheaper deliveries: Businesses compare carriers and choose the best rates.
• Less stock waste: Orders match inventory, reducing costly returns.
• Better customer retention: Happier customers come back, boosting revenue.

A report by McKinsey found that companies using digital tools for logistics reported 10–20% savings on transportation costs. That’s a direct impact on ROI.

Real-World Example: Business Central Shipment in Action

A Canadian wholesaler of consumer electronics struggled with missed delivery windows and rising costs. They were using spreadsheets and separate apps for orders, stock, and shipping.

After moving to Business Central:

• On-time deliveries improved by 25%.
• Shipping costs dropped 12% through better carrier selection.
• Customer service calls about order status fell by nearly half.

It showed them that shipment management isn’t just an internal process — it directly impacts revenue and brand reputation.

Final Thoughts

Shipment management is no longer just about “getting it there”. It’s about doing it fast, cost-effectively, and in a way that keeps customers coming back. Business Central brings order processing, warehouse tasks, transportation, and delivery tracking into one connected system.

This reduces errors, increases visibility, and builds client trust. Dynamics 365 Business Central is a good investment for growing companies without logistics chaos.

For optimal results, work with an experienced Microsoft partner like Dynamics Square for setup, training, and support. So you get ROI faster and avoid ERP project difficulties.

FAQs

1. What is shipment management in Dynamics 365 Business Central?

It’s the set of tools that handle orders, inventory, carriers, and deliveries inside one ERP system.

2. Can I track shipments in Business Central?

Yes. It provides real-time tracking and integrates with carriers so both staff and customers know the order status.

3. Does Business Central support transportation management?

Yes, with Business Central, you can manage carriers, compare costs, and plan routes directly within the system.

4. How does Business Central help with order fulfilment?

It connects sales, inventory, and shipping, so orders move faster and with fewer errors.

5. Is Business Central difficult to implement?

With the right partner, implementation is straightforward. Discovery, setup, training, and support ensure a smooth rollout.