Manufacturing is not a one-size-fits-all industry. From discrete to process manufacturing and everything in between, there are many types of businesses with many different processes to manage. Microsoft Dynamics 365 Business Central (Business Central) is a powerful ERP solution many manufacturers use to streamline operations, improve efficiency, and minimize operational disruptions.
6 Challenges of Business Central for Manufacturing
For the right kind of manufacturer, Business Central can be the answer to many of their inefficiencies and struggles. However, no ERP is right for everyone, and Business Central has a few key shortcomings when it comes to advanced manufacturing processes.
- Limited support for process manufacturing
Business Central generally lacks out-of-the-box functionality for recipes and continuous fills, making it less than ideal for industries like food, beverage, and chemical manufacturers.
- Niche scenarios require customization or add-on apps
Business Central’s ability to manage coproducts, byproducts, or reverse manufacturing is limited, though usually overcome and manually managed through customizations. Business Central assumes infinite capacity by default.. It also does not support Kanban or Agile manufacturing workflows.
- Real-time visibility
While Business Central is excellent at providing insight before and after an order and can intelligently track inventory levels, oftentimes, organizations have to update their progress tracking manually. For real-time visibility, Business Central can be paired with a Manufacturing Execution System (MES) app.
- Compliance reporting
Business Central’s financial reporting capabilities are very strong and secure. However, specific compliance reports such as tax filings, labor compliance reports, or environmental compliance data are not included by default.
- Planning and forecasting
While Business Central’s MRP and MPS tools are highly effective, they don’t consider historical demand or usage trends, and parameters like reorder points have to be updated manually. The are multiple forecasting apps designed to bridge this limitation.
While the above challenges are important to note, they can be easily overcome through working with the right Dynamics partner, implementing custom software, or adding on a app designed for Business Central from Microsoft AppSource.
6 Strengths of Business Central for Manufacturing
Even though Business Central may require some customizations depending on a company’s specific requirements, it truly is an excellent option for manufacturers because it combines powerful, industry-specific with tools with a user-friendly, flexibility, and scalability. It supports a range of manufacturing needs, from production planning and inventory management to cost tracking, subcontracting, and quality control.
Here are a few key strengths of Business Central for manufacturing businesses.
- Integrated Supply Chain Management
Business Central manages inventory, procurement, production planning, and distribution, providing the ability for manufacturers to streamline their entire supply chain.
- Production Planning & Scheduling
Manufacturers can plan production schedules efficiently by optimizing resources, reducing downtime, and minimizing material waste, assisting with overall productivity and minimizing costs.
- Real-Time Data & Analytics
With real-time reporting and data analytics, manufacturers can make informed decisions quickly. They can track production performance, monitor inventory levels, and identify trends.
- Inventory Management
Business Central monitors inventory levels, tracks raw materials and finished goods, and can automate reordering processes, therefore reducing the risk of excess stock or stockouts, and helping prevent manufacturing delays.
- Customization & Scalability
Whether a company is small or large, Business Central can scale according to its needs. It allows customization to meet specific industry or company requirements, making it flexible for various manufacturing operations.
- Integration with Other Systems
Business Central integrates very easily with other Microsoft products, such as Power BI, as well as third-party applications. This provides further customization of the product for specific company processes and bridges the gaps where Business Central may not fill an exact business need. Integrations also create a seamless flow of information between finance, sales, and CRM systems.
When evaluating Business Central, organizations should consider their manufacturing type and complexities, especially those with custom or advanced processes. Business Central makes an excellent ERP option for manufacturers because of its native ability to simplify and streamline processes such as production bills of materials (BOMs), routings, and more. Business Central truly shines in helping manufacturers optimize their inventory planning, vendor management, and profitability tracking.
For those considering Business Central for the first time or searching for the best options to make Business Central work for them, DSWi is a trusted implementation partner that specializes in manufacturing, supply chain, and project-based businesses. To start the conversation, CALL TO ACTION HERE.
