Leverage Microsoft Dynamics 365’s Supply Chain Management’s ‘Warehouse Management Only Mode’ to Optimize Your Automotive Business

Posted on: September 25, 2023 | By: Fred Liu | Microsoft Dynamics AX/365, Microsoft Dynamics Manufacturing

Navigating the automotive landscape requires innovative warehousing solutions, especially with the frequent release of new car models and parts. Dynamics 365 Supply Chain Management’s “Warehouse Management Only Mode” helps separate warehouse management functionality from the broader ERP function. This mode empowers users to utilize the core warehouse management (WMS) functionalities while also allowing them to maintain their existing investments in third-party enterprise resource planning (ERP) and order management systems. Businesses can readily implement Dynamics 365’s advanced WMS functionalities. This allows automotive companies to access WMS features, including automation systems integration, carrier link-ups, and the Warehouse Management mobile app tailored for auto parts tracking.

Deployment Tailored for Automotive Needs The “Warehouse Management Only Mode” is designed to offer flexible deployment options, matching the diverse demands of the automotive sector. The detailed diagram below visualizes the interconnected components and operations.

This solution is very flexible and here’s how you can integrate Supply Chain Management warehouse management mode with other systems:

  1. Automotive-Exclusive Warehousing: Utilize Supply Chain Management strictly for automotive warehousing functions, delegating order processing and financials to an external system.
  2. Holistic Automotive Integration: Rely on Supply Chain Management for a broader spectrum, including sales of vehicles or parts, procurement of materials, and production, while simultaneously managing automotive warehousing duties across multiple ERPs or order systems.
  3. Hybrid Approach for Automotive Systems: Integrate the above strategies, perhaps by setting up a distinct legal entity in Supply Chain Management exclusively to handle automotive warehousing tasks for external or third-party systems.

Automotive Inbound Process: A detailed representation below illustrates the elements of the inbound procedure:

  • An external system submits an inbound shipment order message to Supply Chain Management.
  • This message is processed by Supply Chain Management in Warehouse management-only mode, which creates orders.
  • Inbound loads are then created.
  • The Warehouse Management mobile app registers inbound shipment transactions.
  • Supply Chain Management receives completed processes.
  • The load status is updated to Received, generates shipment receipts, and triggers business events for the external systems.
  • The external systems read and use the shipment receipt data for further processing.
  • The inbound shipment orders are finalized by supply Chain Management running the Post shipment receipts batch job.

Automotive Outbound Process: The visual below illustrates the elements of the outbound process:


  • An external platform sends an outbound shipment order notification.
  • Supply Chain Management evaluates this in Warehouse management mode and generates orders.
  • Inventory reservations are set up based on the system’s configuration.
  • These orders are then advanced for subsequent warehouse tasks.
  • Depending on wave template definition setups, warehouse operations might be initiated and released immediately.
  • The outbound warehouse tasks are then carried out, leading to an update in the status of related outbound shipment order lines to “Picked”.
  • The shipments are then confirmed for outbound shipping. Business events and a shipment packing slip are then generated for the external system.
  • The external system retrieves the shipment packing slip information for additional tasks (like invoicing sales orders linked with outbound shipment orders).
  • The Supply Chain Management completes the outbound shipment order by executing the post-shipment packing slips batch job.

Next Steps:

If you want to learn more about how to leverage warehouse management-only mode to optimize your automotive business in Microsoft Dynamics 365 Supply Chain Management, contact us here to learn how we can help you grow your business. You can also email us at info@loganconsulting.com or call (312) 345-8817.

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