Comparing the Dynamics 365 Warehouse Management Module with Best-of-Breed Solutions

Just 5 years ago, it was a given that third-party, best-of-breed WMS solutions were the smart choice for distribution centers focused on growth, especially those delivering multi-channel services through direct fulfillment, wholesale, and retail store replenishment. The warehouse management functionality that came from the ERP developer was often basic, lacking more comprehensive features that such companies need.

Today, that landscape has changed. Dynamics 365 continues to advance as a world-class cloud ERP platform, and the Warehouse Management Module is stretching forward to feature parity with best-of-breed WMS solutions.

So here’s the big question: What WMS solution will provide the features you need, the tight integration with your Dynamics 365 ERP, and will deliver the most bang for your buck?

We’ve prepared a white paper to help you evaluate your Dynamics 365 warehouse management options.

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Read the Whitepaper

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Which WMS Is Right For Your Business?

We invite you to examine the topic in depth in our publication, “Microsoft Dynamics 365 Warehouse Management Module Versus Best-of-Breed.” In the white paper, we show that the decision, while complex, can be reached through a thorough analysis of six key factors. What are they?

1. Single Platform

In this section, we’ll show you why having a single, integrated IT platform for the backbone of your business can provide significant advantages. At the same time, it’s not the single deciding factor; choosing a WMS solution is first and foremost an operational improvement. Yet, simplifying the tech stack can further enhance efficiency, as you’ll see.

2. Functionality

If the system you choose doesn’t fulfill your functional requirements, it can impede efficiency and stunt business growth. Thus, it’s important to answer three key questions to ensure the solution fits your needs:

1. Will the WMS meet key operational requirements to run the business?
2. Can the system handle my current throughput and future growth?
3. Is the WMS adaptable as my business changes?

We think you’ll be surprised at the feature depth, capability, and flexibility of Dynamics 365 Warehouse Management.

3. Productivity Gain

Since finding good employees (and keeping them) is one of the greatest post-pandemic challenges, businesses are turning to technology to automate processes and boost productivity, ensuring they can keep up with demand without tiring out their workforce.

We’ll show you some of the key features that boost productivity in a warehouse, such as transportation management, advanced warehouse equipment integration that enables additional picking methods, and labor management. You’ll see where Dynamics 365 Warehouse Management provides the most support and a few edge cases where you might need to consider a standalone solution.

4. Technology

Here it’s important to evaluate the complexity of integrating a standalone solution with your Dynamics 365 ERP versus the drop-in connectivity of Microsoft’s solution. Such complexity can increase the Total Cost of Ownership (TCO) both through initial setup and ongoing maintenance.

It is also of note that supporting two (or more) technology stacks can further increase complexity. Does the best-of-breed solution use a different deployment model or database? Will additional resources be required to keep systems operational?

And, of course, no discussion of ERP and WMS technology would be complete without the age-old debate of the advantages and disadvantages of on-premises and cloud deployments, along with all the variants in between.

5. Complementary Products

Many best-of-breed WMS solutions are part of a greater, modular ecosystem. As such, they can supply comprehensive solutions to many complex business challenges through additional modules that seamlessly integrate with the WMS. This can include deep point-of-sale, order management, transportation management, and order fulfillment through marketplaces such as Amazon and eBay.

At the same time, Microsoft continues to build out features that meet the more complex needs of their customers. Each year they continue to narrow the gap in the supply chain space.

6. Total Cost of Ownership

A thorough analysis of implementation costs is necessary to understand the true financial impact of any WMS solution. It is important to consider licensing costs, support, maintenance, upgrades, integrations, and much more.

Choosing the Microsoft solution isn’t an automatic win here – each case is unique, and ensuring the right functionality is present can mean additional customizations are necessary, leading to increased implementation fees.

Get Expert Guidance from a Partner Who Knows Dynamics 365 and WMS

Choosing a WMS is a decision that can have far-reaching implications for your business. It’s common for a business, once committed, to keep the same WMS for 7 to 10 years, or more. That underscores the importance of choosing wisely.

We encourage you to read our white paper, “Microsoft Dynamics 365 Warehouse Management Module Versus Best-of-Breed.” Inside you’ll see an in-depth treatment of the aforementioned six factors, and how each one can help you narrow down your choices until you settle on the right solution for your organization.

At enVista, we’re committed to helping you make the right decision. With over 20 years of industry experience, we leverage our knowledge for your benefit.

Let’s have a conversation?. Contact us today.

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By enVista | envistacorp.com

This article originally published on ERP Software Blog https://erpsoftwareblog.com/2025/01/comparing-the-dynamics-365-warehouse-management-module-with-best-of-breed-solutions/