Optimizing Warehouse Execution for Wholesale Distributors with Microsoft Dynamics 365 Supply Chain Management

Efficient warehouse execution is critical for wholesale distributors balancing high-volume orders, tight delivery windows, and complex inventory profiles. With ever-growing SKU counts, multi-location logistics, and increasing pressure on fulfillment timelines, distributors must ensure that warehouse operations are not only digitized but also configured to align precisely with their workflows.

Microsoft Dynamics 365 Supply Chain Management (D365) provides robust warehouse execution capabilities, including Release to Warehouse (RTW) and Work Configuration. These features allow businesses to automate warehouse task generation, streamline order processing, and increase labor productivity.

In this blog, we examine how distributors can optimize RTW and Work Configuration to improve fulfillment performance, reduce handling inefficiencies, and maintain visibility across the warehouse network.

Core Capabilities in Warehouse Execution

Microsoft Dynamics 365 Supply Chain Management offers an end-to-end Warehouse Management module with advanced capabilities designed to support real-world distribution requirements. Two features — Release to Warehouse and Work Configuration — serve as the foundation for controlling order flow, task creation, and resource allocation within the warehouse.

1. Release to Warehouse (RTW)

Release to Warehouse is a key step in the outbound process, acting as the bridge between order creation and warehouse execution. When sales or transfer order lines are released to the warehouse, the system initiates wave processing, evaluates warehouse configurations, and generates structured work instructions for fulfillment teams.

Distributors can leverage RTW to:

• Automatically group outbound order lines using wave templates.
• Align release timing with picking windows, delivery cutoffs, or consolidation needs.
• Minimize manual intervention through system-driven wave triggers.
• Ensure that orders follow specific pick-pack-ship processes tailored to product type or customer.

This controlled release process ensures that work is issued to the floor in a prioritized and organized manner, reducing congestion and increasing order accuracy.

2. Work Configuration

Work templates define the structure of the tasks executed by warehouse workers. Each template outlines a series of pick and put steps, tailored to specific processes such as sales picking, purchase put-away, or returns handling.

Key configuration points include:

• Pick and Put Sequences: Determine the flow of inventory from storage to staging or directly to outbound docks.
• Staging Requirements: Include or omit staging steps based on operational needs.
• License Plate Handling: Control whether inventory movements are tracked at the license plate (LP) level.
• Work Breaks: Segment large tasks for more manageable execution across multiple workers.
• Disposition Codes: Route returned goods to appropriate inspection or quarantine areas based on condition.

By aligning work templates with actual warehouse processes, distributors can increase efficiency, eliminate redundant handling, and reduce training time for new employees.

Enabling Key Distribution Scenarios

When properly configured, Release to Warehouse and Work templates support a wide range of wholesale distribution requirements, including:

Mixed Order Fulfillment

Distributors frequently receive mixed orders containing standard stock items, custom assemblies, and replenishment products. Configuring wave templates to group by customer, delivery address, or order type allows the system to generate appropriate work based on each line’s unique handling requirements.

Partial License Plate Movements

Inventory is often received in bulk but needs to be distributed across multiple zones or pick faces. Through license plate-controlled locations and partial LP move logic, users can split quantities while maintaining traceability and stock accuracy.

Dynamic Inventory Allocation

Work creation can be driven by real-time inventory availability using location directives. The system considers site, warehouse, location, and inventory status to direct pickers to optimal inventory locations, avoiding stockouts and unnecessary travel.

Mobile Task Execution

The Warehouse Mobile App (WMA) supports the execution of system-generated work, guiding users through picking, put-away, cycle counting, and returns. Mobile menu items are fully configurable, allowing distributors to:

• Control which tasks are accessible by role or user.
• Set field visibility and input modes (manual vs. scan).
• Prioritize data fields for faster task completion.

The result is a tailored mobile experience that aligns with the distributor’s operational model and minimizes training effort. To learn more about the Warehouse Mobile App in Microsoft Dynamics 365 Supply Chain Management, view our in-depth blog post here.

Implementation Considerations

To achieve operational excellence with D365 Supply Chain Management’s warehouse execution capabilities, wholesale distributors should focus on the following areas:

• Wave Template Design: Build templates that reflect order profiles, picking strategies, and carrier requirements.
• Work Template Mapping: Match each outbound and inbound scenario with the correct pick/put flow.
• Location Directive Configuration: Ensure the system selects optimal storage and staging locations based on product velocity, zone, or volume.
• License Plate Strategy: Define when and how LPs should be generated, reused, or split.
• Mobile App Optimization: Use field priority settings to guide users with minimal screen interaction.

A properly configured system not only improves productivity but also increases accuracy and warehouse visibility across all locations.

Conclusion

Warehouse execution plays a critical role in streamlining outbound operations, optimizing inventory movement, and maintaining fulfillment accuracy for wholesale distributors. With Microsoft Dynamics 365 Supply Chain Management, features like Release to Warehouse and Work Configuration enable businesses to standardize task creation, automate warehouse flows, and improve labor productivity. By aligning these tools with operational needs, distributors can increase throughput, reduce order processing errors, and enhance visibility across the supply chain. Through expert implementation and configuration, businesses can maximize the platform’s potential and support long-term distribution efficiency.

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