Goods movements are an important area in almost every company and a fundamental element of logistics and warehouse management. Warehousing and its processes therefore play an important role.
Dynamics 365 Business Central offers many logistics functions to professionally manage the complexity of warehousing.
The warehouse setup in Dynamics 365 Business Central/ NAV
In our article "The warehouse setup in Dynamics 365 Business Central/ NAV" gives you an overview of the most important features of storage bin equipment.
This includes certain rules that must be observed during putaway, e.g. the assignment of a storage location. Displaying the availability of an item is an essential application function in Business Central. Storage bin contents can also be defined, depending on the storage activities and use of the item. Business Central also provides for the creation of storage bins with capacity values such as quantity, total volume and weight. This ensures that items are stored correctly in the storage bin.
This excerpt of features shows how important efficient inventory management is and how precisely warehousing processes are mapped in Business Central. This is the only way to get an overview of the costs associated with the warehouse.
In the following, we will show you which costs and key warehouse indicators play a role here:
1 - Storage and warehousing costs
- Various cost components, such as intermediate products, raw materials and supplies, semi-finished and finished products and spare parts
- Costs arising from warehousing itself, such as rental costs, energy costs, maintenance and cleaning costs and insurance premiums
2 - Inventory turnover rate
- indicates how often the stock was sold and renewed within a year
- A high inventory turnover rate is a characteristic of efficient inventory management
3 - Lead time
- Measure of the time that elapses between order entry and delivery to the customer
- Companies can use the lead time to provide their customers with information on delivery dates
4 - Inventory ratio
- represents the relationship between average inventory and sales
- A low inventory ratio stands for efficient inventory management
5 - Error rate for orders
- A low quota reduces the costs for returns and subsequent deliveries
You can see how important it is to have an accurate overview of stock levels and to be able to quickly identify shortages and excess stock.
Warehouse management can be set up according to your business processes. Dynamics 365 Business Central is able to map warehouse processes and management through various levels depending on the complexity. The retrieval of sales data, order history or supplier information as real-time data is an essential function of Dynamics 365 Business Central.
In addition, the "Cost Accounting 365" add-on module from our partner OPplus, as a cost control tool for analyses and evaluations, offers a wide range of options for monitoring and controlling your stock levels.
Would you like to use Dynamics 365 Business Central in your company in the future or are you already using Dynamics Business Central/ NAV and would like to optimize your logistics functions?
Get in touch with us! Our consultants will be happy to support you or answer any initial questions you may have.
Tel.: 089 - 211 11 848 or e-mail to vertrieb@br-ag.com.
