Generative insights for demand planning in Dynamics 365 Supply Chain Management help you understand your sales history and forecast data for each relevant dimension, such as product and location.

This feature extends the generative insights capabilities of demand planning to include two new metrics: trends and ABC XYZ classification. For each metric, the system creates a dynamic set of clusters based on patterns it detects in the data. For example, the generated clusters for trends include high trending, medium trending, relative flat, and declining trend.

You can view aggregated values by a selected dimension or detailed values for each planning object.

The conversational help and guidance experience in Microsoft finance and operations apps uses Copilot to help you quickly and easily learn how to work with your app. Copilot accepts natural-language queries and returns conversational results. Now, Copilot can also provide a list of likely follow-up questions to help you keep the conversation going. Select a question to see more results.

This feature runs in the Copilot sidecar user interface and supports many types of searches that the sidecar offers. It uses AI to generate suggested questions and displays them as a list of clickable items. When you ask a question, Copilot analyzes it and presents its natural-language response. It also adds a list of related questions that other users typically ask after a similar search.

By integrating this feature into the generative help and guidance experience, all users benefit from a more intuitive and efficient way to find information. The feature is automatically enabled and seamlessly incorporated into the Copilot sidecar with no extra setup.

Purchasers spend a lot of time manually checking incoming emails, assessing the status of each purchase order, replying to suppliers, following up with suppliers, and updating systems. The supplier communications agent helps purchasers by providing the following features:

• Follow up with vendors on purchase orders: The agent can automatically draft ready-to-send emails that ask a vendor about the status of a delayed order or remind a vendor to confirm a purchase order.

• Speed up purchase order updates based on incoming vendor emails: The agent automatically reads your email inbox to analyze communications from your vendors. It finds messages related to purchase orders. It analyzes these messages with organizational data to identify both purchase order confirmations and change requests. The agent runs automated tasks based on your user-defined rules.

Dynamics 365 Supply Chain Management now analyzes demand changes autonomously and suggests or performs re-slotting and workflow reconfigurations to enable the fastest possible picking, regardless of demand fluctuations. With these improvements, organizations can ensure that inventory is continuously optimized for the highest picking velocity.

Benefits

With the new functionality, you get significantly reduced pick times, increased throughput in outbound operations, and a more agile response to shifting market demands.

Added value

These improvements lower operational costs, improve order accuracy, and enhance customer satisfaction with faster fulfillment cycles.

Impact

This feature transforms your business by lowering operational costs, improving order accuracy, and enhancing customer satisfaction. Your warehouses perform better and are ready to handle future demands.

You can configure data collection and assign it to specific activity types and codes to store measurements and attributes for tracking and tracing. With this configuration, you can monitor and manage various activities within the supply chain.

The system also enables you to retrieve all measurements and attributes related to each serial number, batch number, asset number, or lot number. This retrieval process ensures that you can access all relevant data for analysis and decision-making.

You can perform a where-used search to retrieve impacted products based on specific measurements and attributes. For example, you can retrieve all impacted VIN numbers for Model Y vehicles that you produced between August 23, 2024, and September 25, 2024, where the painting temperature was below 80 degrees. This capability helps you identify and address potential issues in the production process.

Advanced quality management integrates throughout the Supply Chain Management solution. Key features include:

• Optimized testing strategies: Flexible sampling plans, skip-lot testing, quality order creation triggers, sample management, instrument calibration, and acceptable quality limits (AQL) testing.
• Regulatory compliance: Approved customer lists, customer-specific certificates of analysis (COA), and enhancements to electronic signatures.
• Digitized manufacturing for precision and compliance: Electronic batch records and production dispensing.
• Continuous improvement and risk mitigation: Corrective and preventive actions (CAPA) management and enhancements to nonconformance.
• Enhanced user experience: Simplified entry of quality test results and new workspaces for quality management.

With sample management, you can:

• Define a plan for sampling finished goods that you produce with production or batch orders. Set how often to take samples, such as one sample from every 10th produced batch or license plate. You don't track samples in inventory. Instead, you define their lifecycle.

• Define a plan for testing samples by using quality orders. Set how often to test the samples, such as testing every seventh sample.

• Block the portion of produced goods that you didn't test. When a quality order passes, you automatically release the portion of produced goods.

• Keep track of samples throughout their lifecycle, from creation to disposal.

Demand planning in Supply Chain Management helps you plan and forecast demand using various data sources and signals. The app now provides capabilities that enhance the accuracy of demand forecasts, so you can better optimize your supply chain and improve financial outcomes.

The new capabilities include:

• Support for multiple signals: Define multiple input signals, such as inflation or weather-related measures, and apply the XGBoost forecast algorithm. This algorithm assesses correlation and analyzes the impact of each signal against historical sales data. It incorporates these insights into the forecast result.
• Event and promotion planning: Define event and promotion types along with their related events and promotions. Each event type and its related events act as signals. The system assesses correlation and analyzes the impact of each signal against historical sales data. It incorporates these insights into the forecast result.
• Additional forecast algorithms: Evaluate new forecast algorithms for specific scenarios.

Planning Optimization provides the features that support the following business processes:

• Lean manufacturing: A production philosophy that maximizes value for customers while minimizing waste. It comes from the Toyota production system and focuses on continuous improvement and operational efficiency.

• Catch weight: A pricing and measurement system used mainly in the food industry. Products are sold based on their actual weight instead of a predetermined fixed weight. This system is important for items that naturally vary in size and weight, such as meat, seafood, and fresh produce.

• Step consumption: Manages material consumption to accommodate non-linear consumption rates that are based on production quantities.

The new Supplier Engagement application gives you a Microsoft Power Apps experience that integrates with Dynamics 365 Supply Chain Management and Dynamics 365 Finance. With this app, you can manage both strategic and tactical areas of your supplier relationships. You can schedule appointments, track performance, schedule supplier reviews, and manage prospective suppliers who aren't registered yet.

The experience also includes a supplier-facing portal based on Microsoft Power Pages. The new supplier portal supports many facets of the supplier relationship, ranging from tactical to operational and transactional aspects. It helps new suppliers onboard and enables existing suppliers to engage with your company through transactions such as requests for quotation (RFQs), managed bidding, purchase orders, and invoices. The supplier portal works with the existing vendor collaboration capabilities in Supply Chain Management.

Enhance product discoverability and streamline integrations by letting order processors find products based on external item identifiers. External identifiers are product names or IDs that differ from those used internally at your company.

External identifiers could be globally recognized codes (such as GTIN, UPC, EAN, ISBN or MPN) that uniquely identify products across systems, suppliers, and marketplaces. This capability is especially valuable in e-commerce, inventory management, and API-based integrations, where consistent product referencing is critical. Alternatively, you can set up customer-specific identifiers to make it easier to communicate with specific customers using the names and IDs that they are accustomed to using internally at their companies.

Once your external identifiers are set up, order clerks/processors can use them to search for products when adding lines to a sales order. This improves accuracy during order entry, reduces mismatches, and supports seamless data exchange with third-party platforms like marketplaces or supplier catalogs. It also enhances the user experience by enabling faster, more reliable product lookup and supports compliance with marketplace listing standards.

Unified pricing management in Dynamics 365 Supply Chain Management can now calculate customer and volume-specific prices and discounts without requiring you to create a sales order. This capability is useful both when creating quotes and when integrating with external selling systems where you need to calculate prices without creating a sales order. Just provide product, quantity, and customer details to trigger pricing and discount calculations programmatically.

The feature exposes key calculation methods and provides sample code so you can implement custom pricing logic.

The Warehouse Management mobile app now captures worker IDs during key container handling steps, such as when a worker adds items to a container or closes the container. With this update, Dynamics 365 Supply Chain Management can trace all packing activities.

Benefits

Provides full traceability of who performs each packing action and when.

Added value

Enhances accountability and transparency in warehouse operations. By logging worker IDs at each step, the system supports quality control, reduces errors, and enables quick issue resolution when discrepancies arise.

Impact

This feature improves operational efficiency and audit readiness. Managers get visibility into packing workflows, so they can track performance, find training opportunities, and keep up with internal or external standards.

This feature provides a standard framework for integrating the Warehouse management module in Dynamics 365 Supply Chain Management with external labor management systems. With this framework, you can connect warehouse execution data to a third-party LMS. This connection gives you advanced capabilities for labor planning, scheduling, and performance tracking. The integration supports warehouse execution with or without warehouse management processes. It also supports warehouse-only mode.

Labor management systems typically provide features like:

• Real-time productivity monitoring and task tracking
• Engineered labor standards and support for time studies to establish benchmarks for task durations
• Predictive scheduling and dynamic labor forecasting
• Customizable dashboards and ad-hoc reporting
• Automated time and attendance tracking
• Incentive program management

The Warehouse Management mobile app for Dynamics 365 Supply Chain Management now runs natively on many wrist-mounted scanning devices, such as those sold by ProGlove.

• Improve accuracy: Reduce picking and packing errors. Some organizations see up to a 27% improvement in picking accuracy when they switch to wrist-mounted scanners.
• Improve productivity: Save three to five seconds per scan. In high-volume environments, this time savings adds up to several hours each day.
• Reduce physical strain and fatigue: Improve worker satisfaction and reduce injury risk.
• Rapid deployment: Quickly roll out the mobile app to many wrist-mounted scanning devices.

The following images show examples of wrist-mounted scanners in use.