A few years ago, a mid-sized manufacturing unit faced a strange problem. Orders were coming in steadily. Machines run fine. Workers were on the floor. Still, production was often delayed by hours every day.
At first, nobody could figure out why this happened. Supervisors assumed teams had been issued the raw materials. Warehouse staff thought they had already picked them. Production teams waited without knowing what was causing the delay. Their overall workflow was driven by unclear assumptions only.
As a result, every delay ended with phone calls, confusion, and rushed decisions.
When they analyzed the situation thoroughly, they discovered that raw material picking was causing the problem.
This is a common story for many manufacturing firms. Raw material picking looks simple from the outside, but inside the operation, it is one of the most fragile processes. One failure can hold everything up.
Dynamics 365 addresses this exact problem. Instead of treating raw material picking as a manual warehouse task, Dynamics 365 connects it directly to production planning, inventory data, and shop floor activity. The result is not just faster picking, but smarter picking.
Let us explore how this actually works throughout this blog.
Why Picking Materials Often Causes Major Delays For Manufacturing Companies?
Most manufacturing firms do not design their raw material picking process. It evolves on its own.
At first, only some employees in the warehouse knew exactly what stock had arrived and how much was needed. Later, that data was entered into spreadsheets. This approach is still followed by many small and mid-sized businesses. Over time, this manual process brings complexity and causes stress to their team when they expand their firm or operations.
Here are the issues that are expected to happen:
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Materials are picked based on habit and assumptions, without understanding priority.
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Inventory records show availability that does not exist physically.
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Production orders compete for the same raw materials.
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Warehouse staff depend on verbal instructions.
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Errors are discovered only after production has collapsed.
Employees do not cause these problems; disorganized data does.
Here, Dynamics 365 ERP software changes how the raw material picking process is treated. It makes it a controlled, data-driven process instead of an informal task.
How Dynamics 365 Connects Material Picking With Production Planning
In many firms, production planning and warehouse operations work in isolation. That gap leads to errors.
Dynamics 365 closes this gap.
When a production order is created, the system already understands the full material requirement through the bill of materials. It also knows current stock, reserved quantities, and incoming supplies.
This allows the system to:
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Reserve materials accurately for each production order.
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Generate raw material picking tasks only when materials are truly available.
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Align material picking schedules with the production timeline.
As a result, it organizes and provides complete insights into material requirements. This helps firms to make raw material purchases when they actually need them. This lowers unexpected expenses and drives the firm to operate profitably every quarter.
From Manual Logs to Smart Material Handling
Traditional picking often relies on printed lists or manual notes. These methods leave too much room for interpretation. In this case, implementing Dynamics 365 ERP solutions becomes highly helpful for manufacturing firms. This solution replaces the manual and time-consuming processes with structured raw material picking instructions.
Each raw material picking task clearly defines:
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Which material to use
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Exact quantity required
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From which warehouse and location
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For which assigned order
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In what sequence
This removes ambiguity, and warehouse staff do not need to guess or ask for clarification. The system directs each step.
Smart Location Management Inside the Warehouse for Faster Picking
In many warehouses, items have location codes, but workers often ignore them and search manually. Dynamics 365 ensures strict location control by linking materials to specific bins, racks, or zones. It can also optimize picking routes to save time and reduce unnecessary movement.
This improves efficiency and assists warehouse employees in practical ways. So, with Dynamics 365 ERP, you get:
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Less walking inside the warehouse, saving time and effort.
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Faster completion of picking tasks, which boosts productivity.
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Reduced fatigue for staff, keeping them energized.
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Fewer mistakes when picking items, improving accuracy.
By using Microsoft Dynamics 365 for manufacturing solutions to optimize material picking routes, companies see more than just happier staff. According to Codeverse Industry Reports, manufacturers using integrated ERP systems typically experience a 30% reduction in lead times and a 25% higher inventory turnover.
These small improvements compound daily and boost the overall firm's productivity.
Simplifying Batch, Lot, and Expiry Management
Picking the wrong batch or lot can wipe out investment and time for manufacturing units. Dynamics 365 ERP software is designed to understand them perfectly. They help in picking the right materials for the firm every time without any extra effort.
Dynamics ERP software can automatically:
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Suggest batches based on FIFO (First In, First Out) or FEFO (First Expired, First Out) rules.
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Prevent picking from blocked or expired batches.
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Record batch usage against each production order.
This approach keeps materials traceable without slowing operations and makes compliance part of the workflow, not an extra step.
Keeps Inventory Up-to-Date in Real Time
One major reason teams stop trusting many ERP systems is an inventory mismatch. But, Dynamics 365 ERP solutions update inventory in real time as soon as materials are picked.
This means:
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Inventory levels reflect physical movement instantly.
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Other production orders see updated availability.
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Planning teams work with reliable data.
Overall, this solution helps companies or firms in making better decisions with accurate data visibility.
Cloud-Enabled Mobile Picking for Real-Time Efficiency
Warehouse environments are not desk environments. With cloud accessibility, Dynamics ERP solutions enable employees to do their work using mobile phones.
So, employees can:
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Opt for scanning barcodes over manual input.
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Confirm picks instantly.
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Limit reliance on hard-copy materials.
The data uploaded from their mobile devices is reflected in the ERP software instantly. This approach is especially useful for businesses with high staff turnover or seasonal labor.
Related Article: Key Differences Between Cloud and On-Premises in Dynamics 365
Why Scaling Businesses Need a Dynamics 365 ERP Solution?
Manual raw material picking workflow on manufacturing units works well until complexity increases. As product variants grow and order volumes rise, informal processes collapse.
In this scenario, Dynamics 365 supports scaling businesses by:
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Standardizing picking workflows.
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Making work less dependent on individuals.
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Maintaining precision in pressured situations.
This stability is critical for firms aiming to expand without operational chaos.
For a scaling business, these efficiencies compound. Research from Microsoft/IDC shows that organizations implementing Dynamics 365 for supply chain and manufacturing see a 20% average increase in overall productivity. This allows firms to handle higher-order volumes without necessarily doubling their warehouse headcount.
Final Notes
Manufacturing efficiency does not always improve through bigger machines or faster lines. Often, it improves by fixing small critical processes like raw materials picking for production.
Microsoft Dynamics 365 turns material picking from a reactive task into a planned, well-coordinated operation. It reduces confusion, prevents delays, and improves visibility across the organization.
For manufacturing firms focused on long-term growth, Microsoft Dynamics implementation provides this level of control and clarity.