How to Ensure Correct Transportation and Inventory Costs with D365

Thursday, February 18, 2021

Dynamics 365’s transportation management helps you identify vendor and routing solutions for inbound and outbound orders. By allocating transportation costs to each individual inventory item by specific criteria such as weight and volume, you can ensure that your cost of inventory is correct and inclusive of all components of the landed cost. Further, you can select the fastest routes while using the least expensive rate for a shipment. Keeping track of inventory with D365 allows you to record specific information and create a historic log of all related work orders. Not only does this offer a seamless experience to customers, but it also efficiently manages costs. In this blog post, we will be discussing how to ensure correct transportation and inventory costs with Dynamics 365.  

Route Plans

With route plans, which contain information about the stops and carriers that are visited and used on the route, you can reduce both operational and transportation costs. For example, you can specify an origin hub and a destination hub, limits for the container volume or weight, and a shipping carrier, service, or group with route guides associated with the plan. Defining the stops on the route as hubs, which can include vendor, a warehouse, a customer, or even just a reloading place where you change carrier, enables businesses to use transportation information to optimize delivery and minimize costs. Further, Dynamics 365 for SCM helps businesses to define the required operations resources, the required setup time and run time, and how the cost should be calculated. With route optimization, companies can better manage how they deliver products and complete the job on time.

Transportation Management Statuses

By setting up master codes for transportation statuses to interpret codes that are provided by your shipping carriers, you can integrate with shipping carriers to provide a status. The transportation status that you provide for a transportation master status code can help you track the status of a load, shipment, or container. Further, the transportation management engines used to define the logic behind transportation rates can calculate tasks such as the carrier’s transportation rate. Types of engines include:

  • Rate engine
  • Generic engine
  • Mileage engine
  • Transit time engine
  • Zone engine
  • Freight bill engine

Catch Weight Product Processing

With catch weight products, you can handle business scenarios related to warehouse management processes. This feature provides a catch weight tag that fetches the captured weight per catch weight unit assigned. With this approach, the user scans the catch weight tag to identify the weight at the time of picking or packing based on the product configuration. Then, invoicing is based on the weight that is associated with the captured catch weight tag. This new functionality upgrades the capabilities for existing catch weight items that have open inventory transactions. Further, this process can reduce errors during order fulfillment procedures by using an automated system. By seeking a more accurate invoicing and billing solution like D365, companies can gain financial, accuracy, productivity, and ultimately customer service benefits.

Next Steps  

If you are interested in learning more about ensuring correct transportation costs as well as maximizing the use of Microsoft Dynamics 365 for Finance and Supply Chain Management contact us here to find out 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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