Dynamics 365 Business Central

Business Central for warehouse management

Warehouse management in Dynamics 365 Business Central

Control inventory, bins, picking, put-away and shipping from one connected ERP. Dynamics 365 Business Central provides scalable warehouse management that grows with your operation.

Overview

Why warehouse management matters in Business Central

Warehouse performance directly affects customer service, cashflow and operational efficiency. Delays in receiving, inaccurate stock levels or inefficient picking processes quickly lead to missed delivery dates and rising costs. Many organisations rely on disconnected warehouse tools or manual processes that make it difficult to maintain accuracy and visibility.

Dynamics 365 Business Central includes built-in warehouse management functionality designed to help businesses track inventory placement and manage warehouse activities accurately. Microsoft states that the core goals of warehouse management in Business Central are to maintain visibility of inventory levels and locations, and to enable fast, accurate receiving, picking and shipping of goods.

Unlike standalone warehouse management systems, Business Central links warehouse activity directly to purchasing, sales and finance. This means that physical warehouse actions update inventory and financial records in real time, reducing errors and manual reconciliation.

Benefits

Meet Business Central: an ERP built for warehouse management

Warehouse operations vary widely. Some teams need simple structure, while others require advanced control. Business Central supports both.

Unified warehouse and inventory operations

Business Central manages warehouse activity inside the same system as inventory, purchasing and sales. Stock movements, bin locations and availability are always in sync with the rest of the business, removing the need for separate reconciliation.

Better decision making

Warehouse managers can see stock levels, bin utilisation, open picks, inbound receipts and outbound shipments in one place. This improves planning, reduces firefighting and helps teams prioritise work based on real demand.

Scalable for simple or complex warehouses

Business Central supports different levels of warehouse complexity. Teams can start with basic receiving and shipping, then introduce bins, put-aways, picks and directed workflows as volume and complexity increase.

Cost efficiency

Structured warehouse workflows reduce manual handling, rework and stock corrections. Automation across put-away, picking and replenishment helps teams process more orders without increasing headcount.

Accuracy and control

Separating physical warehouse actions from inventory posting improves traceability. Warehouse tasks must be completed correctly before inventory and financial records are updated, reducing errors.

ERP stats

Why your warehousing 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

Warehouse management designed around real warehouse processes

Dynamics 365 Business Central provides practical tools that reflect how warehouses operate day to day.

01

Locations and bin management

Warehouses can be structured into locations and bins that mirror the physical layout of the building. This gives precise control over where items are stored and picked from, improving accuracy and efficiency.

Why choose us

Why businesses choose Business Central for warehouse management

Improve stock accuracy

Bin-level control and structured workflows reduce discrepancies between physical stock and system records.

Increase pick-pack-ship efficiency

Guided picking and consolidated shipping workflows help teams process orders faster and with fewer errors.

Support multi-warehouse operations

Businesses with multiple warehouses or distribution centres benefit from consistent processes and shared visibility across locations.

Reduce manual work

Automation replaces spreadsheets, manual stock adjustments and duplicate data entry across warehouse operations.

Scale warehouse operations with confidence

As order volumes grow, Business Central allows warehouses to introduce more structure without changing systems.

Example use cases

Warehouse management scenarios inside the building

This page focuses on running the warehouse floor: bins, picking and stock accuracy. For warehousing as a service business, see our warehousing page.

A distributor with a single large warehouse

The challenge
Pickers walked the whole building for each order.
The approach
Bins were organised by pick frequency with directed picking.
The outcome
Picking was quicker and walking distance fell.

A spare parts supplier

The challenge
Annual stocktakes shut the warehouse for two days.
The approach
Cycle counting by bin replaced the annual count.
The outcome
The warehouse stayed open and stock accuracy improved.

A manufacturer's finished goods store

The challenge
Goods were shipped from the wrong batch.
The approach
Scanning at pick and ship confirmed the right lot.
The outcome
Wrong-batch shipments stopped.

Illustrative, anonymised examples based on typical scenarios in this sector.

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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 warehouse management

These are the problems that come up again and again when we talk to warehouse management 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.

01Stock accuracy erodes between counts

If picking, putaway and adjustments are recorded on paper and keyed in later, the system record and the shelf drift apart. Every full count becomes a large write-off nobody can explain.

02Pickers walk further than they need to

Without directed putaway and pick, location logic depends on who's on shift. Fast-moving lines end up scattered and the same order gets picked three different ways.

03Goods in is the bottleneck

Receipting against purchase orders, checking quantities and putting away are three separate manual steps in many warehouses, and a backlog at goods in delays everything downstream.

04Nobody can promise a date with confidence

Sales commits to a delivery date without seeing allocated stock, inbound purchase orders or pick capacity, so promises are made and then rescued.

Use case scenarios

How warehouse management businesses put it to work

Three situations that reflect the patterns we see most often in warehouse management. 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

Third-party logistics operator, one site, mixed pallet and piece picking

Illustrative scenario
The situation
Stock was tracked at warehouse level rather than bin level, so finding an item depended on the team's memory of where it was put.
What changed
Bin-level locations with zones and directed putaway were configured, with handheld scanning used for receipt, putaway, pick and ship.
The difference
Stock enquiries return a location rather than a quantity, and new starters can pick accurately without a fortnight of learning the building.
02

Distributor with two warehouses, around 4,000 active lines

Illustrative scenario
The situation
Cycle counting was replaced by an annual full count that shut the site for two days and produced a large unexplained adjustment.
What changed
Cycle counting was set up by ABC classification so fast-moving lines are counted frequently and slow lines rarely, with variances investigated as they arise.
The difference
Counting happens continuously without stopping operations, and adjustments are small enough that the cause can actually be traced.
03

E-commerce and wholesale hybrid operation

Illustrative scenario
The situation
Web orders and trade orders competed for the same stock, and oversells were resolved by whoever noticed first.
What changed
Stock reservation rules were configured per channel with availability checked at order entry against both on-hand and inbound purchase orders.
The difference
Availability shown at the point of order reflects what's genuinely allocatable, and the two channels stop taking the same unit twice.
Pricing context

What it costs for a warehouse management 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

Warehouse operations usually need Business Central Premium, because advanced warehousing, directed putaway and pick sit above the Essentials feature set once you move to bin-level control. Warehouse operatives using handheld devices commonly access the system through a scanning app licensed alongside, rather than a full named user seat each, which changes the licence count considerably.

What moves the implementation cost

  • Bin and zone layout design, which is a warehouse exercise as much as a software one
  • Handheld scanning hardware, network coverage and the scanning app itself
  • Whether you need advanced warehousing or basic locations will move the cost significantly
  • Barcode and labelling standards across inbound suppliers
  • Cutover planning, since a warehouse can't easily run two systems in parallel

Warehouse go-live is the highest-risk cutover on this list because the physical count and the system have to agree on day one. Budget for the count, the temporary drop in throughput during the first fortnight, and floor-level training rather than classroom training.

Enquiry form

Strengthen your warehouse operations with Business Central

Warehouse teams need reliable systems that keep inventory accurate and orders moving. Dynamics 365 Business Central brings warehouse management, inventory, purchasing, sales and finance together so your operation can run more efficiently and scale without disruption. To learn more about Business Central for warehouse organisations, or to see the platform in action, get in touch via this short form.

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FAQ

Frequently asked questions

Yes. Advanced warehousing supports bins, put-away and directed picking.

Yes, typically with a scanning add-on for receiving, picking and counting.

No. This page covers warehouse operations. The warehousing page covers storage businesses billing clients.

It is a set of tools that manage receiving, put-away, bin storage, picking, shipping and inventory movement within the ERP.

For many organisations, yes. It provides warehouse management inside the ERP, with the option to extend functionality as needed.

Yes. It supports bins, zones and structured storage layouts.

Yes. Advanced configurations enable directed put-away and pick workflows.

Yes. It supports multiple locations with shared visibility and reporting.

Yes. Mobile and scanning extensions are available for warehouse teams.

Yes. Physical warehouse actions are validated before inventory and financial records are updated.

Yes. It is delivered as a secure Microsoft cloud ERP.

Yes. Businesses can start simple and add structure as complexity increases.

Many see improvements once picking, put-away and stock visibility are centralised.

Looking at Business Central beyond warehouse management? 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.