Microsoft Dynamics 365 in Distribution: Master Planning
Jeremy Centner
|
Jun 6 2022
|
4 min read
Microsoft Dynamics 365 Finance and Supply Chain (D365FSC) is Microsoft’s premium business application suite, and is purpose built for modern distributors combining world-class Azure technology and infrastructure with best practice business processes, and fully integrated analytical reports. Dynamics 365 can relieve the pains that are very common within the distribution space. Manufacturers and distributors have begun to rely heavily on master planning to understand how their organization can best manage having the correct inventory and materials at the correct time in the correct place.
About Dynamics 365 Master Planning
The master planning engine within Dynamics 365 is extremely powerful. The solution allows organizations to understand the future needs of their customer base and plan for those demands accordingly. Master planning evaluates what inventory is currently available, as well as what plan purchases, transfers, and production orders are needed to fulfill or meet that demand.
Those demand sources can include things like sales, quotation, sales orders, sales forecasts, safety stocks, transfers, and production orders. Dynamics 365 (D365) allows for three major planning processes, including master planning, forecast planning, and intercompany master planning. Within those supported processes, organizations can run regenerative, net change, or both. Regenerative plans update all requirements, while net plans only update the plans on items with new requirements that have come in since the last master planning run.
How to Use Marking in the Master Planning Workspace
Let’s take a quick look at the master planning workspace that sits within D365. The system allows for both static and dynamic master plan runs for both short and long-term planning.
Once the system runs, it generates recommended transactions in order to meet and fulfill demand. D365 utilizes inventory marking, which links supply and demand. It is similar to pegging, which indicates how master planning expects to cover that demand. Marking is essentially a more permanent form of pegging.
In the bottom pane, the system has organized the recommended plan purchase transfers and production orders into categories by statuses. As you can see, the statuses are urgent, delaying sales, delaying forecast, and delaying safety stock. Each of those identify the urgency or priority in which these planned or recommended transactions should occur. A planner can drill into the recommended transaction to see where the demand is coming from and why the system recommends it.
In this case (see the video above), the demand is coming from a sales order, transaction 1346. When/if the planner decides to firm the plan transaction, they’ll have options of how to handle the marking. The options include no marking, standard, where marking is updated based on the pegging, or extended, where both the demand and the supply are marked no matter the quantity on the supply order.
Once the order is firmed, then it becomes a live transaction instead of a recommended transaction. Of course, there are ways to include automation, rules, and criteria as part of these master planning runs.
Planning Optimization Add-in
Microsoft has started releasing new functionality for master planning called the planning optimization add-in. Planning optimization add-in allows for master planning calculations to occur outside of Dynamics 365 and its associated SQL database. Planning optimization functionality improves performance and minimizes its impact on the SQL database during master planning runs.
Historically, organizations would run master planning during off hours or overnight, but with this planning optimization functionality, the master planning wouldn’t impact the database or affect the performance of the ERP solution. As such, quick planning runs can be done even during office hours, allowing planners to react with agility to changes in demand.
Stay tuned for more content on the planning optimization add-in feature.
Have any questions about master planning in Dynamics 365? Please contact our distribution industry experts at any time!
This publication contains general information only and Sikich is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or any other professional advice or services. This publication is not a substitute for such professional advice or services, nor should you use it as a basis for any decision, action or omission that may affect you or your business. Before making any decision, taking any action or omitting an action that may affect you or your business, you should consult a qualified professional advisor. In addition, this publication may contain certain content generated by an artificial intelligence (AI) language model. You acknowledge that Sikich shall not be responsible for any loss sustained by you or any person who relies on this publication.
About the Author
Jeremy Centner
Jeremy Centner is the Pre-Sales Solution Architect Director at Sikich on the Enterprise Technology team. Jeremy has been working with the Dynamics products since 2011 with a focus on the manufacturing and distribution industries. His experience spans implementation consulting and project management to requirements gathering, business analysis, and solution presentations. With the vast experience in all aspects of ERP sales and implementations utilizing the Microsoft solution stack, Jeremy brings a unique perspective and provides extensive value to clients.
Sign up for Insights
Join 14,000+ Business executives and decision makers.
Latest Insights
Security
Intune’s Endpoint Privilege Management
December 10, 2024
Security
Intune’s Endpoint Privilege Management
December 10, 2024
Managing user privileges is a critical part of maintaining robust security policies. Traditional methods of managing privileges, such as using local ...
Setting Up Delegate Approval Functionality in NetSuite
December 9, 2024
Technology
Setting Up Delegate Approval Functionality in NetSuite
December 9, 2024
Unexpected delays can halt critical approval processes. Even the most benign activities can slow or stop business operations. Scheduled vacations, il...
Empowering IT System Administrators with Oracle RMC: A New E...
December 6, 2024
Oracle Cloud
Empowering IT System Administrators with Oracle RMC: A New E...
December 6, 2024
With Oracle Risk Management and Compliance (RMC), IT System Administrators, Oracle Cloud Support Teams, and Security Administrators experience a tran...
How to Ensure Marketing-Focused AI Initiatives Don’t Fall ...
December 6, 2024
Marketing & Communications
How to Ensure Marketing-Focused AI Initiatives Don’t Fall ...
December 6, 2024
Based on our discussions with clients and prospects, it is clear companies are increasingly putting their excitement about AI into action via both sm...
Dynamics 365>Dynamics 365 for Finance and Supply Chain Management
The Importance of Aligning Business Needs with the Benefits ...
December 5, 2024
Dynamics 365>Dynamics 365 for Finance and Supply Chain Management
The Importance of Aligning Business Needs with the Benefits ...
December 5, 2024
At a high level, the benefits of upgrading to a modern ERP solution seem pretty obvious: more functionality, more efficient workflows, better securit...
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Strictly Necessary Cookies
Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.