If your warehouse still shuts down for a full physical inventory, there’s a better way. Microsoft Dynamics 365 Supply Chain Management (D365 SCM) makes it possible to count small, often and in real time, without putting operations on pause.
Here are some practical steps you can use whether you’re new to D365 SCM or already live and looking to improve.
Why Inventory Counting Matters
Small errors in inventory create big problems: missed shipments, costly expedited freight and unnecessary write-offs. Traditional full physical counts pile up risk until the day of the count.
Cycle counting spreads the work across days and weeks, so you’re always validating inventory accuracy. In D365 SCM, you can run cycle counts, blind counts and spot checks through the Warehouse Management mobile app. Your team can scan, count and submit on the spot, no spreadsheets or paper required.
What D365 Can Do
- Cycle counting: Schedule counts by item or location. Plans can run by time (daily, weekly, monthly) or by thresholds (like when stock hits zero).
- Blind counting: Hide expected quantities so employees don’t just “count to the system.” This builds accuracy.
- Spot counting: Perform quick checks when something doesn’t look right—no setup required.
- Variance review: All differences go to Pending review, where a supervisor approves or rejects before posting.
- Work orchestration: Use templates and location directives to keep counting tasks short and local. Less walking, faster results.
Quick Wins for Teams Already on D365
- Turn on blind counting where shrink is highest: Hide expected quantities in problem areas so you get truer counts and fewer “perfect matches” with the system.
- Use thresholds for zero or low stock: Set a cycle count threshold so work automatically generates when inventory hits zero or drops below a certain level. This catches errors when they matter most.
- Block only what you must: Instead of freezing the whole warehouse, use inventory status or temporary blocking to protect only the area you’re counting. For conflicts, use work blocking to pause competing tasks.
- Keep tasks short with targeted work: Configure templates and location directives so warehouse employees stay within one zone, following scan-first workflows. This reduces walking time and mistakes.
- Track what moves the needle: Monitor key metrics: accuracy, discrepancy rate (variance ÷ counts), time per count and % of planned locations completed. Power BI and warehouse telemetry reports make it easy to see progress.
Quick Wins for Teams New to D365
- Start with ABC classification: Assign items into A/B/C groups based on value and impact. “A” items are the most valuable, usually only 10–20% of total items (but they represent 70–80% of total value), so they should be counted most often. “B” items fall in the middle and need regular attention, though not as frequently as A’s. “C” items make up the majority of items, often 50–60% (but only 10–15% of total value), so they can be counted less frequently without much risk. Adjust the frequency of cycle counts to match the ABC values, A’s more frequently, B’s on a moderate scheduled and C’s the least. This approach ensures you put the most effort where it matters most.
- Go mobile-first: Configure mobile menu items for cycle and spot counts. Decide whether to show or hide expected quantities. Consistent prompts on handhelds reduce errors.
- Mix plans with spot checks: Use cycle count plans for steady coverage but add spot counts in high-risk areas, especially after large picks or put-away activity.
- Add governance as you grow: If you’re using Inventory Management journals, turn on approval workflows for better control. (Note: cycle counts in WMS already include the Pending review step.)
The Results You Should Expect
When done right, leaders see two curves: accuracy goes up, time goes down.
By combining cycle count plans, thresholds, blind counts and streamlined mobile workflows, many teams achieve 98%+ inventory accuracy – without weekend shutdowns or costly disruptions. With results visible in Power BI, you can prove improvements and build trust across the business.
Bottom line: D365 makes inventory counting smarter, faster and more accurate. Whether you’re just starting out or fine-tuning your processes, these quick wins help you count less and trust more.
