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.

This feature enhances the Unified pricing management module sales trade agreement pricing experience by allowing pricing administrators to define:

• A final exclusive net price that reflects the outcome of negotiation.
• Inclusion of price adjustments, such as percentage increases or decreases.
• Prevention of promotional or system-applied discounts from further affecting the transaction price.

The feature supports the following key use cases:

• B2B or wholesale pricing where negotiated prices honor without promotional interference.
• Long-term contracts that require strict adherence to fixed pricing, which excludes further discounts.

This functionality is especially relevant in B2B, channel sales, and regulated pricing models, where discount logic doesn't alter the agreed price.

This feature provides the following key capability:

• Prevent discount – Choose to prevent any extra discount.
• Allow price adjustment – Choose whether to apply adjustments, such as a markup or markdown, to the sales price.
• Net price definition – Set Allow price adjustment to No and Prevent discount to Yes to define the trade agreement sales price as a net (final, exclusive) price that doesn't allow further discounting.

The Traceability add-in for Dynamics 365 Supply Chain Management tracks manufacturing activities against the serial and batch numbers of specific components and the related finished goods. When quality issues occur, Copilot quickly collects all the relevant details from both the Traceability add-in and Supply Chain Management. It summarizes product status, tracks custody, and analyzes deviations related to the impacted products. This capability helps companies resolve quality issues quickly. It also helps improve overall manufacturing performance efficiency by finding correlations between specific component batches and manufacturing delays.

With Copilot activity summaries:

• QA managers can quickly identify abnormal activity related to any item so they can take appropriate steps to mitigate issues.
• Production managers can easily identify delays or bottlenecks in the manufacturing process.
• Field service workers can quickly understand the lifecycle of any item to verify it and make sure the item qualifies for repair or replacement.

The activities page in Supply Chain Management includes a Copilot-generated summary of recent activities and a full list of activity details. Copilot provides an activity summary that highlights the related item's status, plus any other information. From there, users can drill down into the activity to find related details. The summary for each activity provides instant access to key information such as location, time, items, workers, vendors, and more.

The key capabilities that provide approval and reconciliation flexibility include:

• A new rebate management workflow that enables a resubmission process for vendors.
• Enhanced posting profiles that allow you to reconcile transactions according to the purchased-from vendor instead of using fixed, predefined vendors.
• Improved rebate output for vendor invoices that consolidates multiple ledger lines for the same vendor into a single vendor line with several ledger lines.

When recalculating the weighted average, you can now choose to include transactions that aren't yet financially updated. This feature:

• Adds an option for item model groups.
• Includes transactions without financial closing.
• Applies only during recalculations and doesn't affect inventory closing.

Quality orders in Supply Chain Management now support goods-in-transit orders as a reference type. With this support, you can start the quality control process for goods-in-transit orders. You maintain a high level of product quality throughout the goods-in-transit process. You can monitor existing quality orders and take next steps directly from the goods-in-transit order form. This integration gives you better visibility and control over quality-related processes. It helps you take a proactive approach to maintaining and protecting product quality when you import goods from the Landed Cost module.

During the quality control process, you can block inventory from goods-in-transit orders to prevent the shipment of defective products. This function helps you follow regulatory compliance and reduce legal risks. The proactive approach of inventory blocking lowers rework costs by avoiding post-distribution corrections. By using this integration, you make sure that only high-quality products reach your customers. You build brand trust and loyalty.

The Inventory Visibility service for Supply Chain Management now enables external systems to synchronize, aggregate, and store cross-channel inventory transactions in the Supply Chain Management inventory adjustment journal. The system provides the following capabilities:

• Post inventory changes with all the previously supported information. The post operation now includes extra information about the source document, such as the document type and order number, and the target inventory adjustment journal. The Inventory Visibility service provides new APIs to support these operations.
• Automatically store transactions in Inventory Visibility based on your API input. Use these transactions for inventory analysis and other business purposes.
• Set up inventory transaction aggregation rules in Inventory Visibility for synchronizing with Supply Chain Management.

The Inventory Visibility service now enables external systems to query Supply Chain Management for inventory changes up to 180 days in the future. As a result, users working in an external system can view future inventory availability details and make accurate projections for when orders can be delivered.

This feature enables the Inventory Visibility service to import information about planned inbound and outbound inventory changes along with the related dates. Available-to-promise (ATP) functionality in Inventory Visibility can query these time-series inventory changes and calculate your omnichannel ATP. External systems can query and retrieve this information from Inventory Visibility in near real time by calling its API.

Supply chain traceability follows products and goods as they move through the supply chain. It collects information about the provenance of inputs, supplier sourcing practices, and conversion processes. It provides the following features and benefits:

• Accurate tracking: Track and document the chain of custody based on individual identifiers, such as serial numbers or batch numbers, across the entire value chain and throughout the lifecycle of an item.
• As-built BOM registration: Document composition genealogy information (as-built BOM) and activity events, such as procurement, production, and distribution, for each serial and batch number. You can trace the origin of each part.
• Forward and backward search: Use the where-used functionality to track the consumption of materials throughout your value chain. Find finished or semi-finished goods that could be impacted by a defective component.
• Simplified integration: Integrate with external systems using the robust supply chain traceability API. Although this integration requires some initial setup and configuration, it offers a high degree of flexibility and customization to meet specific business needs.

With this feature, you can query, post, soft reserve, and allocate inventory through the Inventory Visibility service API. You can choose to specify a site and warehouse or not.

The Inventory Visibility service API supports two options for querying or updating inventory data:

• Specify the organization ID and product ID. You can also add other relevant inventory and tracking dimensions.
• Specify the organization ID, product ID, site ID, and warehouse ID. You can also add other relevant inventory and tracking dimensions.

System administrators configure the required data hierarchy by setting preferences in Inventory Visibility.

Product bundles enable businesses to group multiple items so they can price and sell the items together. Product bundles make it easy to ensure that you always sell and price the correct items together. We updated the product bundle feature in Dynamics 365 Supply Chain Management so you can reprint the original sales order confirmation and invoice after you delete or archive and purge a sales order. Because journals now represent product bundles, you can also exchange order confirmations and invoices that include product bundles electronically.

Use the data archival solution in Microsoft finance and operations apps to archive your historical inventory journal records. Set up logical rules to control when and how to archive records from your day-to-day Supply Chain Management database to your Dataverse-managed data lake. The data stays available for historical reporting, auditing, machine learning, legal claims, and other purposes.

Use the data archival solution in Microsoft finance and operations apps to archive your historical inventory transaction records. Administrators set up logical rules that control when and how to archive records from the day-to-day Supply Chain Management database to the Dataverse-managed data lake. The data stays available for historical reporting, auditing, machine learning, legal claims, and other purposes.

Use the data archival solution in Microsoft finance and operations apps to archive your historical sales orders and sales order lines. Administrators set up logical rules that control when and how to archive sales orders and sales order lines from the day-to-day Supply Chain Management database to the Dataverse-managed data lake. The data stays available for historical reporting, auditing, machine learning, legal claims, and other purposes.

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.

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

All the new capabilities are available by default. Use each capability as needed with your new and existing forecasts to help improve accuracy. The new capabilities include:

• Time freeze: Set up periods when forecast calculations that run continuously don't update their baseline forecasts.
• Forecast with signals: Forecast based on multiple input signals by using calculations based on the Prophet forecast algorithm, XGBoost forecast algorithm, or best-fit forecast model. The best-fit forecast model automatically calculates both XGBoost and Prophet results for each combination of dimensions and chooses the best one for the final forecast.
• Auto detect seasonality: Automatically detect seasonality patterns for all forecast algorithms. The system runs an algorithm to detect distinct seasonality patterns across different dimensions, such as products and locations.

Capable-to-promise (CTP) calculations in Dynamics 365 Supply Chain Management now consider both materials and resources when calculating delivery dates. This information is essential for assemble-to-order or make-to-order businesses. CTP calculations include all the components, purchases, transfers, and capacities needed to manufacture any specific item. You can run these calculations for any selected sales order line.

With accurate confirmed ship and receipt dates, you can:

• Tell customers the exact dates when they receive their orders in real time, while you're on the phone.
• Check how any change to a product, such as color, design, or other options, affects the promised delivery date.
• Check how any change in quantity affects the promised delivery date.
• Group or separate line quantities to meet delivery deadlines on make-to-order products.

Master planning calculations use a lot of computer resources. To save resources, companies usually schedule these calculations to run overnight when the system isn't busy. This scheduling gives you a new set of optimized plans to review at the start of the next business day. Supply planners, production planners, and material managers can review and update each master plan throughout the day to handle new issues, like material delays, machine breakdowns, or changing priorities. As the day goes on, each modified plan becomes less optimized and harder to work with until the system recalculates the plans overnight.

Because the planning engine in Supply Chain Management works in parallel with the rest of the system, it can recalculate master plans during the day without affecting overall system performance. All collaborators always have access to freshly optimized supply plans. This approach ensures the best use of materials and capacity, and it minimizes delays when providing products to customers.

Specify substitute components by priority for the main component on a bill of materials. The system uses these substitutes when the main component isn't available in inventory to fulfill the order.

When you run master planning, the system automatically uses the substitute component that's available in inventory. It follows the priority order in the plan group where you can specify which component to substitute.

This feature is available for Planning Optimization.

Planning is crucial for any business that wants to meet customer demand, optimize inventory, and reduce costs. However, planning can be challenging when you deal with multiple products, markets, and stakeholders. Planning is also challenging when you need to account for changing conditions and uncertainties. You need a planning solution that helps you create and work with demand plans that cover your entire organization. The solution supports multiple units of measure and currencies. It enables data-driven decisions. Demand planning for Dynamics 365 Supply Chain Management is such a solution. It offers a range of features and benefits that help you plan more effectively and efficiently, such as the following capabilities:

• New product introduction and end of lifecycle management: Plan for the launch of new products and the phase-out of old products. Adjust your demand forecasts.

• Row-level access: Control who can view and edit your plans. Assign different permissions to planners based on their roles and responsibilities.

• Rolling plans: Continuously update your plans. Extend them to cover longer time horizons to keep up with changing demand and supply scenarios.

• Excel integration and qualitative forecasting: Import and export your time series data directly to and from Excel.

• Qualitative forecasting: Use qualitative methods, such as surveys and expert opinions, to supplement your quantitative forecasts.

• Planner's workspace: Customize your dashboard with charts, key performance indicators, and alerts. Use it to monitor and manage your plans more easily. The planner's workspace is powered by Power BI, which provides advanced analytics and visualization capabilities.

• Recalculation of related time series: Trigger the recalculation of your time series, either periodically or based on events, so your plans stay up to date and aligned with your data sources.

• Filter on input data for calculations and forecasts: Apply filters to your input data, such as by product, location, or customer, to perform calculations and forecasts on specific segments or scenarios.

• Scheduled jobs for data ingestion, transformation, calculation, and forecast: Automate the processes of importing, transforming, calculating, and forecasting your data. Schedule regular or on-demand forecast runs to save time and resources.

• Time series decomposition: Break down your time series into components to better understand and forecast your demand patterns.

With these features and benefits, Microsoft Dynamics 365 Supply Chain Management helps you create accurate and collaborative plans that support your business goals and customer satisfaction.

The following images show examples of the Demand planning user interface for working with demand plans and setting up forecast calculations.

This solution is Microsoft’s next-generation collaborative demand-planning solution for Dynamics 365 Supply Chain Management. It uses best-in-class forecasting algorithms and models. The solution offers immersive user experiences, intelligent reports, and analytics. It empowers organizations to build an agile, resilient, and sustainable demand-planning practice fueled by intelligence and collaboration. The solution offers:

• A no-code approach to demand modeling and planning configuration. Flexible building blocks enable most demand planners (over 85%) who aren't data scientists to do what-if planning and analyze, optimize, and compare scenarios in minutes.

• Seamless, on-the-fly aggregation and disaggregation, which enable planners to edit forecasts at a corporate or product-group level. Planners can then zoom in and instantly see the impact on the regional and stock keeping unit (SKU) level.

• Improved forecast accuracy with automatic AI parameter tuning, which helps ensure accurate forecasting and preprocessing. External signals enable superior forecast accuracy by considering promotions or stockouts.

• Disruption readiness with interactive and fast what-if analysis. Version history enables you to track and evaluate forecast changes. Use the lessons learned to improve the decision-making process.

• Effective collaboration throughout the planning cycle by using Microsoft Teams in-context communication, in-product commenting, and restorable versions of forecast values throughout the planning process.

• Increased agility through integrated planning and execution flow with native integration to Supply Chain Management, customizable worksheets, and exception-based planning.

Dynamics 365 Supply Chain Management now lets you manage, track, and verify compliance with export control restrictions before you confirm, pack, ship, and invoice sales orders.

The system lets you manage export control policies by using a native Microsoft Dataverse solution that directly connects with your Supply Chain Management instance. Supply Chain Management enforces compliance with international trade regulations by checking your export-control policies in real time.

With the Dataverse-based architecture, many of the other systems you use can also access your export control rules through the hundreds of connectors available for Dataverse. You can also use the rich features of Microsoft Power Platform, like the Microsoft Power Fx language, to extend the solution. Your export control administrator can support complex scenarios by creating formulas like those in Microsoft Excel.

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.

This feature uses quality orders to perform acceptance sampling.

With acceptance sampling, workers inspect a statistically determined sample size of products to identify defects. Workers categorize each defect as critical, major, or minor. A code letter and a master sampling chart based on ISO and ANSI industry standards define the sample size and allowable defect counts for each category.

With this feature, you can:

• Generate an acceptance sampling chart (image 1), which consists of a code letter chart (image 2) and an acceptable quality limit chart (image 3). The acceptable quality limit chart provides supporting data from a predefined template. Administrators can edit these templates.

• Create a quality association that includes item sampling and test groups, with tests classified by defect type (critical, major, or minor). This configuration enables automatic generation of quality orders for acceptance sampling (image 4).

• Print a test report that includes defect thresholds by category, test results, and a clear indication of whether the lot passes or fails inspection (image 5).

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.

This feature separates the processes for manufacturing execution from the approval process for time and attendance.

Production managers configure Supply Chain Management to let managers skip the approval process for recorded work times when adjustments are applied, such as registration errors or unpaid time off. Now, production managers can end production orders without waiting for payroll managers to approve time and attendance.

With this feature, finance controllers can calculate production costs using estimated operation times instead of recorded production times. Use this option for production jobs where time estimates are usually more accurate than recorded times.

Supervisors and managers set up the production floor execution interface so workers can register time for project activities. When a worker is ready to start a new project, they select the project from a list. The system records the start time. When the worker registers their next activity, such as clocking out or starting a new project or production job, the system registers the end time for the previous project. The system updates its journal with the project start and end times.

Dynamics 365 Supply Chain Management now enables manufacturers to:

• Track serial and batch numbers for components used in production orders and link them to serial and batch numbers for finished goods.
• Generate production orders with quantities greater than one unit, even when both components and finished products require serial or batch number control.
• Set up the serial number and batch number tracking process to integrate seamlessly with job management.
• Track serial and batch numbers from both the production floor execution interface and the standard UI for managing production orders.

To enable these features, Supply Chain Management connects to the supply chain traceability service. Supply Chain Management helps workers scan barcodes with serial and batch numbers and lets supervisors view and edit tracking details. The supply chain traceability service provides high-performance traceability and can connect to many other data sources as needed.

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.

Contract lifecycle management (CLM) is a key element of the source-to-pay process. Dynamics 365 Supply Chain Management now provides a platform that makes it easy to integrate with an external CLM system. The feature supports out-of-the-box rules and integration points for interacting with CLM. The integration supports purchase agreements and non-disclosure agreements. It uses master data from Supply Chain Management.

Users who approve purchase requisitions and purchase orders can now respond to approval workflow tasks from their mobile devices. Procurement approval activities include approvals related to purchase requisitions, requisition lines, purchase orders, and order lines.

The mobile app shows an overview of the user's assigned approval tasks and due dates. From there, the user can open details for each purchase requisition and purchase order to approve, all without switching context. After reviewing the context and details of an approval request, the user selects the appropriate response option. The user chooses from the approval options configured for the workflow: approve, reject, request change, or delegate to another user.

For information about how to prepare your Supply Chain Management and Dataverse environments to support the Approvals Management mobile app and how to install the app on your mobile devices, see Onboard the Approvals Management mobile app.

The following screenshots show examples of how the app looks when running on a mobile device.

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.

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.

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