Inventory Control Made Easy: Mastering Stock with Dynamics 365 Business Central

In the fast-paced environment of small and medium-sized companies (SMBs), inventory control involves more than simply counting products; it is about improving customer service, increasing capital, and creating a competitive advantage. When used correctly, the right ERP makes inventory control a competitive advantage.

This is why it's great to have Microsoft Dynamics 365 Business Central, a complete cloud-based ERP solution that is designed to meet the specific needs of SMBs. As you manage one or multiple warehouses, Business Central changes the ability to manage, track, monitor, and input and optimize your maintainable inventory.

In this blog, we are going to explore the value of inventory control, the challenges that small and medium-sized businesses face, and demonstrate how Microsoft's Business Central is helping small and medium-sized businesses overcome these challenges through the access of real-time data, save time by automating inventory accounting, and streamline your reporting processes.

 Why Inventory Management Matters for SMBs

Inventory can be one of the most valuable assets of a business. Effectively managing inventory assets can help organizations:

• Avoid stockouts so customers are happy.

• Minimize carrying costs and improve cash flow.

• Reduce losses from obsolescence, damage, and theft.

• Plan and act smarter with trends based on demand patterns and real-time data.

Many organizations struggle with managing inventory effectively due to poor visibility, manual spreadsheets, and even no real-time visibility with departments that operate independently. Poor visibility and inaccurate inventory lead to over-ordering, delayed shipments, and revenue and profit losses due to outdated stock.

General Inventory Management Challenges

Even successfully run SMBs are dealing with these issues:

• Manual tracking errors through spreadsheets or paperwork.

• Conflicting data by department.

• Slow responding to changes in demand.

• Wasted space in the warehouse.

• No visibility of other locations.

• Outdated software that does not integrate with other processes.

The consequences of these problems include lost sales, excess inventory, and unhappy customers. With the right tools, you can gain control of your inventory.

What is Microsoft Dynamics 365 Business Central?

Business Central is a cloud ERP designed specifically for SMBs, built by Microsoft. Business Central brings together your finance, sales, purchasing, inventory and operations into one tool as a single source of truth.

Value Summary:

• Real-time data visibility

• Integrated Department functionality

• Scalable and customizable, unique to your business

• Simple dashboards and mobile access

• Good price point for small businesses

Business Central has powerful inventory features that allow you to work smarter, not harder.

Microsoft Dynamics 365 Business Central Key Inventory Capabilities

1.      Inventory in Real-Time

Track inventory in real-time from locations and warehouses. Goods received, shipped, adjusted, or transferred - they will all be available instantly.

2.      Auto-Replenishment

Set minimum and maximum levels for each item in your inventory. Business Central can create suggested purchase orders to ensure inventory never goes below the minimum level.

3.      Multi-Location Capabilities

Manage inventory in multiple warehouses, retail stores, or service trucks. You can also create transfer orders for the simple movement of inventory.

4.      Item Tracking with Lot/Serial Numbers

Complete item tracking via serial or lot number for full traceability. It is important for some industries, such as food, pharmaceuticals, and electronics.

5.      Inventory valuation methods

Support for FIFO, LIFO, Average, and Standard Costing, and you can automatically post inventory cost to the General Ledger.

6.      Demand forecasting

Leverage AI to forecast future demand based on your past sales history. Helping to better prepare for future inventory levels and to reduce excess stock levels.

7.      Warehouse Management Capabilities

Use bins, zones, warehouse picks/put-aways for better warehouse management. You want to put the inventory away and/or pull it in a precise manner.

8.      Inventory adjustments and physical count

Create all manual adjustments and cycle counts simply. Maintain your stock records with built-in journals and reports.

9.      Item Categories and Attributes

Group items together for reporting and filtering purposes. Create attributes such as brand, size and color for your catalog organization.

10.  Mobile Access

Warehouse staff can check inventory using tablets or other mobile devices. They can enter and update inventory in real time, which reduces lag time and minimizes errors.

Benefits of Business Central Inventory Management

Using the capabilities of Business Central to manage an inventory can do the following:

• Decrease stockouts: Ensure products are reliably available to support improved customer service.

• Decrease carrying costs: Avoid over-stocking while supporting cash liquidity.

• Increase accuracy: There are fewer errors due to automation versus having to do it by hand.

• Improve warehouse efficiency: Items can be picked, shipped, and received in less time.

• Order with foresight: Order based on anticipated usage rates as opposed to blind guesses.

• Have audit readiness: A record of all movements and all changes in dollar value.

• Scale with ease: Expand your product mix across locations without added complexity.

Step-by-Step: Inventory Setup Directions for Business Central

Step 1: Create Item Cards

Create an item card which will have the information that would define each item through the item number, description, unit of measure, and costing method.

Step 2: Designate categories

Categories and attributes are used to designate categories and group together similar items.

Step 3: Configure Locations and Bins

Configure your warehouse and storage bins so they represent your current setup.

Step 4: Establish your Reordering Policies

Establish reorder points, lead times, and predetermined safety stock level values so your purchasing process can be set to automation.

Step 5: Bring in Opening Balances

You can import existing on-hand quantities with values from your Excel files or old system.

Step 6: Set up tracking

If items will need to be tracked by lot or serial number, set up tracking.

Step 7: Train Users

Train purchasing, warehouse, and sales users on how to work in Business Central.

Step 8: Go live

Get yourself and your team to go live with Business Central, and begin processing transactions, monitoring and optimizing as you go.

Why Choose Business Central Over Basic Tools?

Conclusion

Inventory management can make or break an SMB. In today's competitive climate, it is no longer acceptable to rely on manual tracking or outdated systems. Dynamics 365 Business Central's aftermarket solution allows for a seamless integration of your inventory into all operations.

As we mentioned throughout the article, Business Central allows SMBs to fully utilize their potential, reducing stockouts, cutting costs, increasing efficiencies in the warehouse, and overall customer satisfaction. TMR Consulting will work with you as your implementation Partner to not just give you the software solution, but the best overall solution for your business.

Why TMR Consulting is the Right Partner for Implementation

At TMR Consulting, we assist SMBs in transforming their business with Microsoft Dynamics 365.

We are a Microsoft Gold Partner with:

• Certified Business Central professionals

• Specialization in finance, inventory, and project management

• Offices in the USA, Canada, UAE, Australia, and Pakistan

• Track record of cloud ERP implementations

We also offer:

• Consultation based on your needs

• Configuration based on your industry

• Full training and support

• Importing data from a previous system

Let's Transform Your Inventory

Are you sick of running out of stock, or tying up cash with too much stock? Business Central and TMR Consulting will help turn your inventory process into an engine of growth. Contact us to get a free demo.