Plan and prepare for Dynamics 365 Supply Chain Management in 2025 release wave 1

Overview

Dynamics 365 Supply Chain Management offers comprehensive capabilities for end-to-end processes that manufacturers, distributors, consumer product groups, and retailers need to meet their supply chain requirements. Its functionality spans product information management, forecasting, planning, inventory, sales, and procurement, as well as complex manufacturing, asset maintenance, warehousing, transportation management, and costing.

The 2025 release wave 1 introduces several key enhancements:

• Demand Planning: Copilot, generative insights, and cell-level explainability features improve forecasting accuracy.
• Manufacturing: New features include optimized testing strategies and digitized records for quality management. Copilot-assisted updates to manufacturing planning data enhancements lead to more accurate production processes.
• Planning Optimization: Integrates lean manufacturing principles, catch weight, and step consumption features for better management of material use.
• Contract Lifecycle Management: Supports integration with external systems for efficient management of supplier contracts.
• Vendor Rebate Management: Updates reconciliation and resubmission workflows, so vendor transactions are more flexible.

Updates to Dynamics 365 Supply Chain Management 2025 release wave 1

Investment areas

Copilot and AI innovation
Dynamics 365 Supply Chain Management provides a rich set of capabilities for supporting organizations' business processes with innovative, in-product, AI-based features that empower users to quickly unlock the full potential of supply chain management.

Inventory and logistics
By using the inventory and logistics capabilities in Dynamics 365 Supply Chain Management, you can efficiently manage your sales and fulfillment processes while keeping inventory available to meet your service level goals. These capabilities give you greater visibility, efficiency, and resiliency in your supply chain operations.

Manufacturing and asset management
The manufacturing and asset management features in Dynamics 365 Supply Chain Management help companies gain agility, efficiency, and visibility in their manufacturing and maintenance operations while maximizing asset uptime and productivity. These investments focus on increasing flexibility and agility. Manufacturers who need to comply with multiple inventory accounting practices across multiple currencies benefit from enhancements to the Global Inventory Accounting add-in. Improvements in material picking and handling last-minute manufacturing changes increase agility on the shop floor.

Planning
Demand planning uses best-in-class, ready-to-use forecast models, immersive user experiences, intelligent reports, and analytics. With demand planning, your organization can build an agile, resilient, and sustainable demand planning practice that's fueled by intelligence and collaboration. In-memory supply planning gives you the performance and scalability to get near real-time insights into requirement changes with material requirements planning and production scheduling.

Procurement
Procurement and sourcing cover all steps from identifying a need for products and services, through procurement, receipt, invoicing, and processing payments to vendors. You can configure procurement processes for your specific business needs by defining purchasing policies and workflows.

Warehouse management
The warehouse management solution in Dynamics 365 Supply Chain Management provides a rich and flexible set of capabilities that you can combine and configure to support many warehouse layouts and operational scenarios. You get the same capabilities in warehouse-only mode. With this mode, a dedicated legal entity uses Supply Chain Management's warehouse management features and integrates with other legal entities or external systems.

To learn more about the entire set of capabilities being delivered during this release wave, check out the release plan for Dynamics 365 Supply Chain Management below:

For application administrators

User-impacting features to the user experience enabled automatically
User-impacting features should be reviewed by application administrators. This facilitates release change management and enables successful onboarding of new capabilities released to market. For the complete list, look for all features tagged "Users, automatically" in the release plan.

Features that must be enabled by application administrators
This release wave contains features that must be enabled or configured by administrators, makers, or business analysts to be available for their users. For the complete list, look for all features tagged "Users by admins, makers, or analysts" in the release plan.

Get the most out of Supply Chain Management