Warehousing in Business Central – Getting the Most Out of Your ERP Solution
By Jason Chance
September 26th | 4 min read
“What Is the Right Level of Warehousing Functionality to Use in Business Central?”
A question our team often hears is, “What is the right level of warehousing functionality to use in Business Central (BC)?”
The answer is, unsurprisingly, “It depends.” The level of functionality you need in Business Central (BC) can range from simple to complex, and understanding which level suits your operations best is crucial for optimizing your warehouse efficiency.
So, What Are the Different Levels of Warehousing Functionality in Business Central?
- Basic Functionality: At the most basic level, you might simply want to pick items directly from a sales order and handle put-aways from a purchase order. This straightforward approach works well for businesses with uncomplicated warehousing needs, allowing for minimal system interaction and operational simplicity. For example, an electronics distributor in Ontario manages around 200-500 smaller orders daily. With their smaller warehouses and simpler warehousing needs, they use basic functionality effectively, handling inventory directly from purchase and sales documents without additional warehouse transactions.
- Intermediate Functionality: If you’re looking for more control and efficiency, you might opt for intermediate functionality, which allows you to manage more complex scenarios. Or you might not want warehouse workers interacting directly with purchase and sales documents. In this case you can use Inventory picks and Inventory put-aways to separate warehouse functions from purchase/sales functions. You can take it one step further and use warehouse documents for picks and put-aways. These allow you to do batch picking and wave picking to maximize labor efficiency in your warehouse.
- Advanced Functionality: The highest level of functionality builds on the intermediate capabilities by incorporating high-level automation and customization. It includes features such as directed put-away and picking, which involves detailed instructions for inventory placement and retrieval based on specific criteria. This level supports complex warehouse layouts, integrates with external systems, and leverages advanced data analytics to optimize warehouse operations and scalability.
So Which is Right for You?
When deciding on the right level of functionality, it’s essential to consider the balance between cost and benefit. Advanced features often come with a higher price tag and a more complex implementation process. It’s important to evaluate whether the efficiency gains justify the investment and whether the functionality aligns with your business’s current and future needs.
Integration with other business systems is another critical factor. The choice of warehousing functionality will affect how well BC integrates with other systems such as a warehouse management system (WMS), especially in cases of complex material handling requirements. Effective integration ensures seamless operations across systems and reduces the risk of data discrepancies.
Scalability is a key consideration as well. Once a certain level of functionality is implemented, making changes later on can be challenging. Therefore, it’s vital to choose a level that not only meets your immediate needs but also accommodates future growth and changes in your operations. For instance, we worked with a large distributor of medical and physical products, who initially implemented Business Central without any warehousing functionality. After several years, they were ready to implement a more complex warehousing process. This resulted in a multi-month implementation project that included extensive, testing, training and change management as well as on-site support for their warehouse staff. Ultimately they were able to leverage Business Central warehousing to execute all of their material handling needs. Incorporating a clear roadmap and plan for each stage of implementation can help mitigate risks and ensure that your system evolves with your business.
Common Pitfalls
Common misconceptions about warehousing functionality often stem from a lack of understanding of its full capabilities. Businesses sometimes underutilize advanced features or misalign their setup with actual warehouse operations, leading to inefficiencies. It’s crucial to educate yourself about what the system can and cannot do, even if you’re not using all features immediately. This knowledge will help you make informed decisions and prepare for future needs.
Ready to Dive Deeper?
As we look ahead, our upcoming summit will be a prime opportunity to dive deeper into these topics. Jason will be there alongside Amanda and our team to share his expertise and answer your questions about warehousing functionalities. Whether you’re exploring basic features or contemplating advanced configurations, be sure to stop by our booth to learn more!
Looking for more detailed information and personalized tutorials? Academy Classes will offer valuable insights and practical advice to enhance your warehousing operations. Jason will be joining Amanda and Kim on their class Business Central Accounting 101 & 102.
Registration is still open! Learn more about Amanda’s class here: Academy at Summit – Community Summit North America (summitna.com)
Learning to leverage integrations and interoperability in the Microsoft ecosystem is essential to unlocking the full potential of the platform. Find out how by reaching out to the LIDD team today to ask about our implementation and support services for Microsoft Business Central.
Keywords: Business Central, Warehousing, Microsoft Power Platform, Enterprise Technology, Data Management, Business Systems, Software Integration