Dynamics 365 Business Central

Business Central for defence

A smarter way to run defence programmes with Business Central

A modern ERP system that helps defence organisations manage financial control, supply chains, contracts and operational delivery from one secure platform.

Overview

Why defence organisations choose Microsoft Business Central

Defence organisations deal with complex supply chains, strict compliance standards and long project lifecycles. When systems do not connect, this complexity becomes harder to manage. Business Central brings financial, commercial and operational data together to support informed decisions.

Dynamics 365 Business Central is Microsoft's comprehensive ERP system for organisations across the defence sector. It brings together finance, procurement, logistics, project delivery, reporting and supply chain activity in one place.

With it, defence teams can replace disconnected tools and spreadsheets with a secure, scalable platform backed by Microsoft's enterprise security. If you want a clearer, more controlled way to run defence programmes, keep reading.

Benefits

Meet Business Central: an ERP for the defence sector

An ERP system built for security-conscious industries helps defence organisations manage programmes, partners and compliance with confidence.

Unified operations

Business Central connects finance, procurement, logistics and project information to create a single operational picture. Defence organisations often run multiple systems across different units or partner structures. Bringing these together supports better collaboration, reduces duplication and improves accuracy across the supply chain.

Better decision-making

With real-time dashboards, built-in forecasting tools and connected data, leaders gain clearer insight into performance. Recent research reports that organisations with integrated decision intelligence frameworks improve operational efficiency by up to 20%. These improvements directly support assurance, cost management and programme delivery.

Scalability

Whether you operate as a tier 1 defence contractor or a specialist supplier, Business Central scales with your organisation. You can deploy in the cloud, on-premises or as a hybrid model. This helps defence teams adapt the system to their security posture and commercial growth.

Cost control

Automated workflows, reduced manual processes and clearer reporting help lower operational overheads. According to recent studies on Microsoft business applications, organisations using a unified ERP reduce finance-related costs by up to 30% through process automation and improved visibility. This gives defence teams stronger financial discipline across projects.

Compliance and security

Defence work requires strict compliance, traceability and audit readiness. Business Central includes role-based access, audit trails and Microsoft's security framework to help meet these standards. Features such as automated approval workflows and data classification help support regulatory and contract compliance requirements.

ERP stats

Why your defence business needs an ERP

Data taken from a survey we commissioned in December 2024. Click here to view

0%

of businesses are utilising an ERP

0 in 0

businesses are dissatisfied with their current ERP

0%

of businesses say using an ERP has contributed to achieving business outcomes

Capabilities

ERP designed for defence

Defence organisations deal with long programme cycles, sensitive supply chains and strict reporting obligations. Dynamics 365 Business Central includes flexible tools that support secure operations, financial clarity and efficient programme delivery.

01

Project oversight

Manage defence programmes with clear timelines, budget plans, resource activity and delivery milestones. Teams gain a structured way to oversee complex work and maintain control over variations, dependencies and subcontractor activity.

Defence organisations need clarity, efficiency and confidence in their operations. Business Central simplifies processes, connects teams and strengthens commercial and operational control.

Business Central for defence
Why choose us

Why defence teams choose Business Central

Programme scheduling

Plan programme schedules with visibility across tasks, dependencies and resources. This helps identify bottlenecks early and maintain steady delivery against defence contracts.

Cost estimation and forecasting

Accurate cost modelling is essential during bid, design and delivery phases. Business Central offers tools for detailed cost estimation, scenario planning and forecasting so organisations can submit precise bids and keep projects on track.

Supply chain resilience

Track parts, equipment, maintenance items and specialist components across suppliers. Defence organisations can monitor stock levels, lead times and quality controls, helping reduce the risk of shortages or delays.

Contract and partner management

Manage agreements, partner relationships and subcontractor performance in one platform. This supports transparent reporting and ensures that all parties meet commercial and contractual requirements.

Operational insight

Leverage dashboards and analytical tools to understand performance across projects, cost centres and delivery teams. This insight helps leaders identify risks early and make changes that support better outcomes.

Watch

Discover how Microsoft Dynamic 365 Business Central works

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The Dynamics of Success

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The Dynamics of Success report cover

Try Business Central in an environment built around your business

Most trials drop you into a generic demo company that looks nothing like the way you actually work. Ours doesn't. We configure your free trial around your business and the use case you care about, so you and your team can test real scenarios with data and processes you recognise.

It starts with a short questionnaire about your industry, your current systems and what you want to prove out. Once that's back with us, your tailored trial can usually be made available within a few working days. Prefer a guided walkthrough first? A standard demo is still on the table - just tell us which you'd like.

Book a standard demoMake a general enquiry
01

Tell us about your business

Complete a short questionnaire covering your industry, processes and the things you most want to test.

02

We configure your trial

We set up a Business Central environment around your use case, so you're not clicking through a generic demo company.

03

You're up and running in days

Your tailored trial is typically ready within a few working days of the questionnaire coming back to us.

Sector challenges

What actually goes wrong in defence

These are the problems that come up again and again when we talk to defence businesses about their systems. If two or three of them sound familiar, the issue is usually structural rather than a matter of trying harder with the current setup.

01Contract compliance shapes the finance process

Defence contracts bring specific cost allocation, reporting and audit requirements. The finance system has to evidence how cost was assigned to a contract, not just record it.

02Traceability and configuration control are mandatory

Serialised parts, batch history and configuration state have to be provable across the life of an asset, often decades after delivery.

03Security classification limits system choices

Where data can be hosted, who can access it and how it's segregated are constraints that come before any functional requirement.

04Long programmes, uneven cash

Multi-year programmes with milestone payments need revenue recognition and cash forecasting that a standard billing model doesn't cover.

Use case scenarios

How defence businesses put it to work

Three situations that reflect the patterns we see most often in defence. Each one describes a type of business, the problem it started with and what changed once Business Central was set up around it.

These are anonymised, illustrative scenarios built from common patterns in the sector. They aren't customer stories, and no figures here are attributed to any individual organisation.

01

Defence sub-contractor manufacturing serialised assemblies

Illustrative scenario
The situation
Serial number history was held in production paperwork, and responding to a customer configuration query meant retrieving physical records.
What changed
Serial and lot tracking were configured through production and despatch so each assembly's component history is held against the serial number.
The difference
Configuration queries are answered from the system, and the audit position is consistent rather than dependent on record-keeping quality.
02

Engineering services supplier on multi-year programmes

Illustrative scenario
The situation
Milestone billing was tracked separately from project cost, so recognised revenue and programme progress didn't line up.
What changed
Programmes were set up as jobs with milestone billing schedules and work-in-progress recognition against progress.
The difference
Revenue recognition follows delivery, and the cash profile of each programme is forecastable rather than reactive.
03

Specialist supplier working across commercial and defence contracts

Illustrative scenario
The situation
Cost allocation between commercial and defence work relied on an annual apportionment, which was difficult to defend under contract audit.
What changed
Dimensions for contract and cost category were applied at transaction level with allocation rules documented in the system.
The difference
Cost allocation is evidenced per transaction, and audit questions are answered with a report rather than a reconstruction.
Pricing context

What it costs for a defence business

Licensing is published and predictable. Implementation isn't, because it depends on what you ask the system to do. Here's the licence position, then the things that genuinely move the number in this sector.

Team Members

£6.20per user / month

Read, approve, enter time and expenses. No full transactional access

Essentials

£61.50per user / month

Finance, sales, purchasing, projects, basic stock and warehousing

Premium

£84.60per user / month

Everything in Essentials plus manufacturing and service management

Microsoft UK list prices, per user per month on an annual subscription, correct at the time of writing. Check the current figure on Microsoft's pricing page.

Which licence you'll need

Defence suppliers with manufacturing need Business Central Premium for production, service and serialised tracking. Hosting and data residency requirements can change the deployment model, and that decision affects cost more than the licence tier. Non-finance users involved in approvals often sit on Team Members licences.

What moves the implementation cost

  • Data residency, hosting and security requirements
  • Serialisation and configuration traceability through production
  • Contract cost allocation rules and the audit evidence around them
  • Milestone billing and revenue recognition on long programmes
  • Export control and restricted-access configuration

In defence, the compliance and security scoping conversation comes first and can rule options in or out before functionality is discussed. Build time into the plan for it rather than treating it as a technical detail at the end.

Enquiry form

Strengthen your operations with an ERP built for defence

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FAQ

Frequently asked questions

Business Central is Microsoft's core ERP platform that helps defence organisations manage finance, supply chains, projects and reporting in a secure, connected system.

Business Central uses Microsoft security, which includes data encryption, role-based access and audit trails. Organisations can also choose cloud, on-premises or hybrid deployment depending on their security requirements.

Yes. It includes project planning, budgeting and cost control tools designed for long-term programmes with complex milestones, dependencies and reporting needs.

It integrates with Microsoft 365, Power BI, Power Apps and Azure services. This gives defence teams a connected digital environment for communication, workflows and reporting.

It includes audit trails, permission controls, approval workflows and accurate financial records. These features support regulatory, contractual and internal compliance obligations.

Yes. Defence organisations can customise workflows, reports and integrations. Many suppliers also build industry-specific extensions that run on the Business Central platform.

It provides real-time tracking of inventory, supplier activity, logistics steps and delivery timeframes. This helps defence teams manage complex supply chains more effectively.

Yes. It is designed to scale, making it suitable for prime contractors, tiered suppliers, engineering firms and logistics partners.

Its cost estimation, forecasting and financial planning tools help bid teams create accurate proposals and assess commercial viability.

No. Defence organisations can deploy it in the cloud, on-premises or in a hybrid environment, depending on their requirements.

Looking at Business Central beyond defence? See the full Dynamics 365 Business Central overview for features, pricing considerations and how implementation works, or read our guide to choosing a Business Central partner.