{"id":19168,"date":"2026-10-27T12:31:54","date_gmt":"2026-10-27T07:31:54","guid":{"rendered":"https:\/\/dynamics.folio3.com\/blog\/?p=19168"},"modified":"2026-10-27T12:36:25","modified_gmt":"2026-10-27T07:36:25","slug":"dynamics-365-supply-chain-management-for-manufacturing","status":"publish","type":"post","link":"https:\/\/dynamics.folio3.com\/blog\/dynamics-365-supply-chain-management-for-manufacturing\/","title":{"rendered":"Dynamics 365 Supply Chain Management for Manufacturing: How a US Lamb Processor Runs Everything on One Platform"},"content":{"rendered":"

Key takeaway:<\/b> Dynamics 365 Supply Chain Management (D365 SCM) puts product data, production, warehousing, costing and transportation on one platform. A US lamb processor uses it to handle catch weight products, short shelf life, multi-site formulas and compliance paperwork, mostly with standard features and only a few targeted customizations.<\/span><\/p>\n

Manufacturers rarely struggle with one process. They struggle with the gaps between processes: a product catalog that doesn’t match the recipe, a warehouse that doesn’t match the production floor, a shipment that doesn’t match the order.<\/span><\/p>\n

Dynamics 365 Supply Chain Management closes those gaps by putting product data, production, warehousing, costing and transportation on a single platform. For companies evaluating<\/span> Dynamics 365 Finance and Operations implementation<\/span><\/a>, this case shows what that looks like in a demanding food manufacturing environment.<\/span><\/p>\n

What is Dynamics 365 Supply Chain Management?<\/h2>\n

Dynamics 365 Supply Chain Management is Microsoft’s ERP application for manufacturing, inventory, warehousing, procurement and logistics. It is one of the two applications that came out of Dynamics 365 Finance and Operations, alongside Dynamics 365 Finance. It supports discrete, lean and process manufacturing on a single platform.<\/span><\/p>\n

A demanding example: from livestock to supermarket<\/h2>\n

A US lamb processor buys feeder lambs, feeds them in a feedlot, and harvests them once they reach target weight. When needed, it also buys frozen imported boxed products. From there, it sells a wide range of cuts, in many variants, to large supermarket chains, restaurants and other meat sellers.<\/span><\/p>\n

Nearly every difficult manufacturing requirement shows up in this one business: variable weights, short shelf life, many sites, customer-specific labeling and regulatory paperwork. Businesses that start upstream with livestock often pair this with dedicated<\/span> livestock and agriculture ERP software<\/span><\/a>. Here, D365 SCM was configured to handle all of it, acting as the processor’s full ERP for meat processing.<\/span><\/p>\n

Where the implementation starts: the product catalog<\/h2>\n

Everything downstream depends on getting products right. The processor sells many variants of each cut, so the solution uses the standard product master and product variants rather than creating thousands of unrelated items.<\/span><\/p>\n

Two requirements go beyond standard behavior: shelf life and nominal weight at variant level. These were added as targeted customizations so users can see and maintain them where they work.<\/span><\/p>\n

How does D365 handle catch weight items?<\/h3>\n

All finished products are catch weight items, handled with D365’s standard catch weight functionality. Catch weight means a product is sold and stocked in one unit (such as boxes) but priced and valued by its actual, variable weight.<\/span><\/p>\n

Dry goods and packaging materials are not catch weight items, though some still carry variants.<\/span><\/p>\n

Production control for process manufacturing<\/h2>\n

Production runs on batch orders and formulas, configured per variant and per warehouse. The same variant can use a different formula at a different site, with different raw material costs. Even meat raw materials are catch weight items. This is where D365 behaves like a true process manufacturing ERP rather than a discrete-only system.<\/span><\/p>\n

Items that change roles<\/h3>\n

Carcasses and similar primals can be finished goods in one flow and raw materials in another, for example when feeding a shoulder assortment. D365 tracks each stage of that transition with standard functionality, so inventory and cost stay traceable from carcass to boxed product. That same principle underpins<\/span> lot traceability<\/span><\/a> for food recalls and audits.<\/span><\/p>\n

Advanced warehousing with Dynamics 365 warehouse management<\/h2>\n

The facility uses Advanced Warehouse Management to optimize throughput through wave templates, location directives and automated work workflows. For a deeper look at the module itself, see our guide to<\/span> warehouse management in Dynamics 365 Finance and Supply Chain Management<\/span><\/a>.<\/span><\/p>\n

Operational efficiency and rapid user adoption come from the F3 WMS application, Folio3’s proprietary WMS app for warehouse management. It streamlines daily routines for frontline staff, including moving goods between warehouse locations, shelves, the shop floor and the shipping area; printing and scanning license plates and product labels; and putting goods into and pulling them out of quarantine. It does this while keeping full flexibility to use native Microsoft warehouse capabilities for complex operational scenarios.<\/span><\/p>\n

Shop floor execution and transportation management<\/h2>\n

On the production floor, the Ardia app (Folio3’s proprietary shop floor application) handles all production floor execution, including recipe selection, weight scale integration, dry goods and raw material consumption, routing and operations, production of finished goods, product label generation and automatic production journal posting.<\/span><\/p>\n

Dynamics 365 Transportation Management uses standard rating and routing wherever possible, extended with estimated and final route sheets and custom bill of lading reports. Paperwork accuracy matters as much as route efficiency here; we cover the wider picture in our article on<\/span> logistics ERP and its benefits for the supply chain<\/span><\/a>.<\/span><\/p>\n

How the modules work together<\/h2>\n

It helps to follow a single product through the supply chain:<\/span><\/p>\n