Microsoft Dynamics 365 Supply Chain Management

Modules & Capabilities Overview • June 2026

Real-time inventory visibility across warehouses, sites, and channels — with serial/batch tracking, costing, and stock optimization.

CapabilityWhat It Does
Inventory Visibility Real-time inventory availability across all locations and channels via a unified API — enabling accurate promise dates and allocation
Serial & Batch Tracking Track individual units and batches through the entire supply chain for full traceability, recalls, and quality management
Inventory Costing Calculate inventory value using FIFO, LIFO, weighted average, or standard cost — with full cost roll-up and variance analysis
Stock Transfers & Journals Move inventory between warehouses, adjust quantities, and record consignment with automated intercompany transactions
Product Information Management Define and manage products, variants, attributes, and product hierarchies across the organization

Streamlined purchasing processes from requisition through vendor payment — with supplier collaboration, contracts, and spend analytics.

CapabilityWhat It Does
Purchase Order Management Create, approve, and track purchase orders with configurable workflows, change management, and confirmation processes
Vendor Management & Collaboration Give vendors a self-service portal to confirm POs, submit invoices, manage consignment inventory, and respond to RFQs
Request for Quotation Manage competitive bidding with multi-vendor RFQs, sealed bids, and automated bid comparison and award workflows
Procurement Contracts Define blanket orders, price agreements, and quantity commitments with automated release and release fulfillment tracking
Supplier Communication Agent AI agent that autonomously contacts suppliers for order confirmations, delivery updates, and exception resolution

Discrete, process, and lean manufacturing — production orders, routing, BOM management, quality control, and shop floor execution.

CapabilityWhat It Does
Production Order Management Create and manage production orders from planned orders through release, execution, and reporting with real-time status tracking
Bill of Materials & Routing Define multi-level BOMs and operation routings with work centers, resources, and time standards for accurate cost and scheduling
Manufacturing Execution System Connect shop floor devices and MES systems to report production progress, material consumption, and quality results in real time
Quality Management Define quality orders, sampling plans, and test results at receiving, production, and shipping — with non-conformance workflows
Production Scheduling Optimize production schedules using finite capacity scheduling, job sequencing, and constraint-based planning

Advanced warehouse operations — directed putaway, pick strategies, wave planning, and mobile device integration for high-throughput fulfillment.

CapabilityWhat It Does
Receiving & Putaway Direct incoming goods to optimal bin locations using license plate receiving, cross-docking, and configurable putaway strategies
Wave & Cluster Picking Automate pick wave creation and release with configurable sort criteria, cluster picking, and pick-to-light integration
Outbound & Shipping Manage packing, manifesting, and carrier integration for outbound shipments with shipping container tracking and load planning
Mobile Device Integration Configure mobile device menus for every warehouse task with barcode scanning, voice picking, and hands-free operation support
AI-Assisted Warehouse Operations AI-powered picking recommendations, inventory rebalancing, and demand-driven slotting to optimize warehouse layout and flow

Embedded AI across the supply chain — from intelligent demand forecasting and anomaly detection to natural language queries and autonomous supplier communication.

CapabilityWhat It Does
Copilot in Supply Chain Natural language assistant for querying inventory, orders, and exceptions — surfacing insights and recommended actions in context
Demand Forecasting AI Machine learning demand forecasting with external signals, seasonality detection, and AI-generated forecast insights with explainability
Supplier Communication Agent Autonomous agent that contacts suppliers for order confirmations, delay alerts, and proactive exception management at scale
Supply Chain Insights AI-powered risk scoring and supply disruption alerts — identifying shortages before they impact production or customer delivery
Traceability & Sustainability End-to-end supply chain traceability for carbon footprint, responsible sourcing, and product journey compliance reporting

Unified planning across supply, demand, and inventory — with AI forecasting, master planning, and real-time operational analytics.

CapabilityWhat It Does
Master Planning Generate planned purchase, production, and transfer orders based on demand, BOM, and lead time with Planning Optimization
Demand Planning Collaborate on demand plans across sales, marketing, and operations with statistical forecasting and consensus planning
Transportation Management Plan, execute, and reconcile freight across modes and carriers with rate shopping, load consolidation, and freight audit
Supply Chain Analytics Monitor KPIs across inventory turns, supplier performance, on-time delivery, and production efficiency with Power BI dashboards
Available-to-Promise Give accurate delivery promise dates based on real-time inventory, open orders, and planned receipts across all fulfillment sources

Product Roadmap

2026 Release Wave 1 (Apr – Sep 2026) — Source: Microsoft Learn Release Plans

FeatureCategoryGA Date
Analyze demand using generative insights for better planning Copilot & AI Jun 2026
Manage the downstream impact of PO changes with Procurement Agent impact analysis Procurement Released Apr 24, 2026
Gain quality-management insights with analytics dashboards Manufacturing Jun 2026
Run Planning Optimization on Azure operated by 21Vianet Planning Released Jun 9, 2026
Protect confirmed CTP dates with Planning Optimization Planning Sep 2026
Enhance demand forecasts with multiple data inputs Copilot & AI May 2026
Manage supplier relationships with Supplier Engagement Procurement Jul 2026
Calculate prices for external systems through API Sales & Pricing Released Jun 5, 2026
Link pricing decisions to demand forecasts Sales & Pricing Sep 2026
Enhance warehouse efficiency with dynamic item placement Warehouse Jun 2026
Enable precise serial and batch capture in cluster picking Warehouse Jun 2026
Improve database health by archiving load data Administration Sep 2026
Streamline transfer order receiving in WOM with ASNs Warehouse Jun 2026
Automate dynamic work classification with Power FX Warehouse Jun 2026
Improve picking efficiency with wrist-mounted scanning devices Warehouse Jun 2026

Prior Releases

Source: Dynamics 365 Release Plans — Microsoft Learn

2025 Release Wave 2 (Oct 2025 – Mar 2026) — View full plan
2025 Release Wave 1 (Apr 2025 – Sep 2025) — View full plan
2024 Release Wave 2 (Oct 2024 – Mar 2025) — View full plan
2024 Release Wave 1 (Apr 2024 – Sep 2024) — View full plan