Microsoft Dynamics 365 Inventory & Logistics Management

Logistics in Microsoft Dynamics 365 gives you the flexibility to manage inventory and purchasing according to your needs, with functionality to support forecasting, classifying and tracking inventory and the efficient creation and management of bills of material (BOM).

The solution exchanges information with many other functional areas in the solution including production, master planning, trade, finance and CRM, to help ensure a high degree of synergy between logistics and other key areas of your business.

Optimize inventory levels

Logistics in Microsoft Dynamics 365 offers strong forecasting functionality that supports long-term planning, to help you optimize inventory levels. You can create sales and purchase forecasts based on items and time periods and use an unlimited number of forecast models to simulate various future scenarios. To quickly project cash flow, you can transfer item forecasts to the general ledger forecast.

Get detailed insight into your inventory

Inventory dimensions are a powerful tool for classifying your inventory according to storage and item characteristics, so that you can get a detailed overview of your inventory whenever you need it. You can track items throughout the system using batch and serial numbers. You can also view documents related to an item using a simple tree-graphic from anywhere in the system. At any time, you have direct access to information telling you where items were used and where they can be found.

Create bills of material quickly and easily

The graphical BOM designer is a graphical suite used to create and manage BOMs based on Microsoft drag-and-drop technology. The familiar, user-friendly environment makes it faster and easier to construct BOMs using a graphical tree-structure. The BOM designer displays all levels and components of the BOM, and you can drag and drop relevant items from the inventory table into the BOM.

The BOM designer also displays the route for the current BOM, allowing you to drag and drop items from the BOM into the operations on the route where they are to be consumed. This helps to achieve more accurate lead time calculations when scheduling production in Master Planning in Microsoft Dynamics 365.

Flexible management of bills of material

Logistics in Microsoft Dynamics 365 gives you an efficient and flexible means of managing bills of material to ensure you get the most accurate costing and materials requirements information. Forty BOM levels can be managed effectively and accurate consumption of raw materials can be calculated using formulas specific to each component. Price calculations, using cost price, can be performed for each level of the BOM, giving you accurate and detailed pricing information which is updated throughout the solution.

You can create multiple BOM versions to provide m365imum flexibility, and you can use the version date of each BOM to control the validity of different versions. Previous BOM versions can be accessed and reused at any time.


  • Optimize inventory levels by matching supply with customer demand.
  • Improve your inventory management with detailed insight into your inventory and item tracking.
  • Improve your materials requirements planning with flexible options for managing bills of material.
  • Create bills of material (BOM) quickly and easily using the graphical BOM designer.