How to Optimize Multi-Site Production and Distribution with Dynamics 365 Business Central

How to Optimize Multi-Site Production and Distribution with Dynamics 365 Business Central

In today's fast-paced manufacturing and distribution environments, managing production and inventory across multiple locations can be a daunting task. Companies often struggle with maintaining production integrity, accurately tracking manufacturing expenses, and ensuring efficient distribution of goods. These challenges can lead to increased costs, inefficiencies, and missed opportunities.?

If you find yourself grappling with these issues, you're not alone. The good news is that there are powerful tools available to help you streamline your operations and overcome these hurdles. By leveraging Microsoft Dynamics 365 Business Central, you can optimize your multi-site production and distribution processes, ensuring that your business runs smoothly and efficiently.?

In this month’s newsletter, we will demonstrate how to use Dynamics 365 Business Central to:?

  • Enhance production integrity across multiple facilities using Stock Keeping Units (SKUs).?

  • Efficiently manage Material Requirements Planning (MRP) and Master Production Scheduling (MPS) to meet demand.?

  • Automate transfer orders and streamline the distribution of goods across multiple locations.?

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How to use Stock Keeping Units for Manufacturing and Distribution?

In Microsoft Dynamics 365 Business Central, SKUs are essential for managing inventory across multiple locations, defining location-specific production processes, and handling item variants. They also facilitate automated replenishment and detailed reporting, ensuring accurate and efficient inventory and production management. ?

SKU Set-Up?

To use stock keeping units to enhance production Integrity across multiple facilities and accurately record and track manufacturing expenses across multiple facilities, begin with your standard item in inventory then add Stock Keeping Units?to it to make the relationship between the item and the location or variant code. ?

For this scenario, there are three different location codes, and each location has its routing number. As you scroll through, you’ll see the different routing number for each location.?

As you scroll through, you’ll see the different routing number for each location.?

Manufacturing – Multiple Routing?

To review the routings for a specific finished good item, slightly adjust the time for each location to reflect different manufacturing processes. You can also modify the work centers or machine centers an item passes through, as well as the labor codes and associated costs, allowing different facilities to produce the same finished good in various ways and accurately record the actual costs. This will enhance the ability to manage your manufacturing operations in your system.?

When you have the sales order set up for the finished good from different locations - This will drive the demand in your MRP process. Run the planning worksheets to get the results. Process the production orders for the finished good items to complete the manufacturing process.?

Once processed, there will be ledger entries that were created when the finished good items were finished out of production. Scroll right to see each production order and the different routings for each location. ?

?? Watch the full video to learn how to use SKUs for distribution and automatically create transfer orders between your locations.?

How to use Purchase to Pay Purchasing with MRP ?

MRP Requisition Process?

In this sample scenario as a user working in the operational area, you can run the MRP process by starting on a blank planning worksheet. Select prepare > calculate regenerative plan > fill parameters > Ok?

This MRP process will look at the inventory and requirements to give you the results.?

For example, if you want to order a new product in your business to meet your safety level, mark the action message > carry out the action ?

Purchase Order and Creation ?

To create a new purchase order from the MRP process, go into the purchase order > fill in the parameters such as inventory location/cost ?

If this purchase order needs to be approved, select Request Approval > Send Request Approvals?

?? Watch the full video to demo PO Receiving, Quality Control Inspection, Vendor Invoices/Returns.?


How to Plan and Execute Production Orders from Multiple Locations.? ?

Product Setup?

Start with the finished good item you want to create. ?In this scenario, to create three production orders in three different locations, use a standard routing number because the SKUs isn’t being used. However, if SKUs are used, you could specify separate routings for each location.?

?Bills of Materials?

Select the item > structure to get to the BOM structure. We're bringing back all the items and work centers for a seamless backflush. This simplification in demonstration is created solely by this particular sales order. The completed product line I possess is tapped from three separate locations, adding further convenience.?

Calculate the plan for both the MPS and the MRP?

If you’re logged in to the manufacturing manager Role Center, the first thing you want to do is go to a blank planning worksheets and fill it by selecting prepare > calculate the regenerative plan to calculate the MRP and MPS.?

Once calculated, BC wiill give you suggestions that the system is making in order to fulfill the demand in the system. It will show all the component items ready to go on a purchase order. Next accept the action messages for those items. ?

When the items that you want to execute?are marked > home > carry out the action messages. This is going to create production orders in the plan status and purchase orders ready to go.?

?? Watch the full video to demo production/purchase order.?

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Graham D Rae

Interim Programme Manager | Business & Digital Transformation | ERP | CRM D365| Change Leadership | Agile | IT Strategy | CEng CITP MIIM MIoD MBCS MCIM MCIET #ono

2 个月

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