Manufacturing and distribution

Manufacturing and distribution

How planning, purchasing, production, stock, warehousing, wholesale and logistics work, how they fit together, and the Microsoft Dynamics 365 systems that run them.

How manufacturing and distribution processes fit together

Manufacturers and distributors run the same chain of work. Demand tells you what to buy or make, purchasing and production turn that into stock, the warehouse holds and picks it, and logistics gets it to the customer. Finance sits underneath every step, valuing stock and costing each order.

When planning lives in a spreadsheet, stock in one system and orders in another, the gaps show up as shortages, excess stock, late deliveries and margins nobody can explain. Running the chain from shared data, with demand driving replenishment, is where most of the improvement comes from.

Core processes

From planning to delivery

Each step has its own guide, covering what good looks like and where the right system helps.

  1. 01 Planning

    MRP and demand planning

    Working out what to buy and make, and when, from sales orders, forecasts, stock and bills of materials.

  2. 02 Buying

    Procurement and purchasing

    Choosing suppliers, raising purchase orders and receiving goods against them, with approvals and price control.

  3. 03 Making

    Production

    Production orders, routings and capacity, with materials and labour costed against each job.

  4. 04 Holding

    Stock and inventory

    Knowing what you hold, where it is and what it is worth, with reorder points that keep stock at the right level.

  5. 05 Storing

    Warehouse management

    Bins, put-away, picking, packing and stock counts, so orders leave the warehouse quickly and accurately.

  6. 06 Selling on

    Wholesale and distribution

    Trade pricing, high order volumes and stock across locations, with customers kept informed about availability.

  7. 07 Delivering

    Logistics

    Planning shipments, tracking deliveries and costing transport, so customers get what they ordered on time.

  8. 08 Connecting

    Supply chain management

    Joining planning, suppliers, production, warehouses and customers into one view of the supply chain.

Systems

Choosing a system for manufacturing and distribution

The right system depends on your size, how many sites you run and how complex your production and warehousing are.

Articles

More on manufacturing and distribution

Our articles on production, stock, traceability, supply chains and AI in purchasing, grouped by topic.

Production, stock and traceability

Running manufacturing on an ERP, keeping the right stock, replenishing on demand and tracing batches when something goes wrong.

Supply chain and distribution

Shortening lead times, avoiding disruption, modernising the supply chain and selling through more channels.

AI in purchasing and the supply chain

How Microsoft Dynamics 365 agents and AI help with supplier follow-up, purchasing decisions and supply chain planning.

Enquiry form

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FAQ

Frequently asked questions

Most need one system covering planning, purchasing, stock, sales orders and finance, with production management added for manufacturers and warehouse management for businesses with large or complex stores. An ERP such as Microsoft Dynamics 365 Business Central brings these together so every team works from the same stock and order data.

MRP (material requirements planning) works out what to buy or make, and when, from demand, stock and bills of materials. ERP covers MRP plus purchasing, sales, warehousing, finance and reporting, so the plan connects to orders, costs and the accounts.

Not always. Many businesses manage bins, picking, put-away and stock counts inside their ERP. A separate warehouse system tends to make sense for very high volumes, complex automation or third-party logistics, and it then needs to stay in step with the ERP.

Business Central suits small and mid-sized manufacturers and distributors who want finance, stock, purchasing, sales and production in one system. Dynamics 365 Supply Chain Management is aimed at larger organisations with complex, multi-site manufacturing and distribution. The right choice depends on your size, sites and processes.

By recording lot or serial numbers as goods are received, used in production and shipped, an ERP lets you trace a batch backwards to its suppliers and forwards to the customers who received it, which is what a recall or audit needs.

Start with stock accuracy and the flow from sales order to purchase and production. When stock figures are trusted and demand drives replenishment automatically, planning, warehouse work and delivery promises all become more reliable.