When it comes to enterprise resource planning (ERP) software, Microsoft offers two modern cloud-based options: Microsoft Dynamics 365 Business Central and Dynamics 365 Finance & Supply Chain Management (F&SCM). Both platforms provide businesses with comprehensive tools to manage their financials, supply chain and operations.
If your organization is already on a hosted, on-premises Microsoft ERP solution, there is a ‘default’ solution to migrate to; however, that solution may not be the best one for you. Why? An ERP is a long-term investment. Taking account of your current state of business, processes and operations is a given. More importantly, you need to take into consideration where you will be three, five and even seven years from now.
Dynamics 365 Business Central vs Finance and Supply Chain Management
Choosing the right ERP for your organization can be daunting, especially with two powerful options available. Let’s take a closer look at just a few of the differences between ERP solutions.
Microsoft Dynamics 365 Business Central
Microsoft Dynamics 365 (D365) Business Central offers easier implementation, user-friendliness and affordability for small to medium-sized businesses. Here are some unique advantages and applications of the D365 Business Central ERP that differentiate it from D365 Finance and Supply Chain Management:
- Designed for small to medium-sized businesses: Business Central is designed to cater to the needs of small- to medium-sized businesses, making it an affordable and streamlined option for organizations that do not require the advanced functionalities offered by Finance and Supply Chain Management.
- Faster implementation: Due to its simplified features, Business Central can be implemented more quickly than Finance and Supply Chain Management, allowing businesses to get up and running with their ERP solution faster.
- Customizable: Business Central is highly customizable, allowing businesses to tailor the software to their specific needs without requiring extensive programming knowledge. This flexibility is particularly useful for organizations that require industry-specific features.
- Integration with Office 365: Business Central integrates seamlessly with Office 365, allowing users to access and work with their data from a familiar interface.
- Easier to use: Business Central has a user-friendly interface that is easy to navigate, making it accessible for users with limited ERP experience.
- Project management functionalities: Business Central includes project management functionalities that allow businesses to manage tasks, resources and budgets for their projects, making it a useful tool for service-based organizations.
Dynamics 365 Business Central is a highly customizable, affordable and user-friendly ERP solution that is well-suited for small to medium-sized businesses that require basic functionalities. Its integration with Office 365 and project management features makes it a powerful tool for organizations in service-based industries.
Microsoft Dynamics 365 Finance & Supply Chain Management
Microsoft D365 Finance & Supply Chain Management is a more scalable, modular and feature-rich solution designed for larger organizations with more complex structures and needs. Here are some unique advantages and applications of Dynamics 365 F&SCM that differentiate it from Dynamics 365 Business Central:
- Designed for large enterprises: Finance and Supply Chain Management is designed for large enterprises and organizations with complex structures, making it a comprehensive solution for businesses that require advanced functionalities and scalability.
- Supply chain management: Finance and Supply Chain Management includes advanced supply chain management functionalities, such as warehouse management, transportation management and demand planning, making it an ideal solution for organizations that have complex supply chains.
- Financial management: Finance and Supply Chain Management offers advanced financial management features, including budgeting, financial planning and forecasting, making it a powerful tool for organizations that require complex financial management capabilities.
- Global capabilities: Finance and Supply Chain Management offers global capabilities, such as multi-language and multi-currency support, enabling businesses to manage their operations across different countries and regions.
- Manufacturing capabilities: Finance and Supply Chain Management includes manufacturing functionalities that enable businesses to manage production processes, including planning, scheduling and inventory management.
- Business intelligence: Finance and Supply Chain Management offers robust business intelligence and analytics capabilities, allowing businesses to gain insights into their operations, identify trends and make data-driven decisions.
Microsoft Dynamics 365 F&SCM is a comprehensive, scalable and powerful ERP solution that is well-suited for large enterprises and organizations with complex structures and operations. Its advanced functionalities, supply chain management capabilities, financial management features, global capabilities, manufacturing functionalities and business intelligence make it a robust tool for businesses that require advanced ERP functionalities.
How to Choose the Best ERP System for Your Business
Choosing the right ERP system is more than a technology decision; it’s a strategic move that can shape how your organization operates and grows. To make the best choice, start by assessing your company’s size, industry requirements, IT resources and long-term growth plans. For example, a regional distributor may find that D365 Business Central meets all of its core needs with a faster implementation and lower cost, while a multinational manufacturer may require the advanced capabilities and global compliance features of Finance & Supply Chain Management.
Consider practical factors such as available internal IT support, potential customizations and how each system integrates with your existing software stack. Look at licensing models carefully. Per-user pricing may suit smaller teams, while enterprise tiers might make sense for larger organizations.
Finally, think about adoption and training. Allocating time and resources to change management can reduce disruption and increase ROI. By weighing both functionality and practical considerations, you can choose an ERP system that supports today’s needs and positions your organization for sustainable growth.
Cost Considerations
When evaluating cost, Microsoft Dynamics 365 Business Central is generally more affordable than Finance & Supply Chain Management, making it an attractive option for small to mid-sized businesses. However, the total financial investment extends beyond licensing fees.
Business Central typically charges on a per-user, per-month basis, while F&SCM uses enterprise-level licensing tiers that can significantly increase upfront and ongoing costs. Implementation costs can also vary widely depending on the complexity of your deployment, required customizations and the need for additional modules to extend system capabilities. Support requirements, both internal IT resources and external vendor support, should be factored in, as these can impact operational efficiency and overall expense.
Hidden costs, such as training employees, change management initiatives and integration with third-party solutions, can also add up quickly, so it’s important to assess the full scope of your investment before choosing an ERP solution.
Choosing the Right ERP System
Choosing between Microsoft Dynamics 365 ERP solutions – Business Central or Microsoft Dynamics 365 F&SCM – isn’t always cut and dry. Teaming up with a partner like enVista can help you in the decision-making process, implement the solution that is best for your specific business needs and ensure that you are getting everything you can out of the platform.
We have completed several ‘F&SCM or Business Central’ assessments for customers to help them through this process; we can help you too! Contact us for more information on our ERP Comparison Assessment.
