In many manufacturing operations, raw material picking can make or break production efficiency. When materials aren’t staged on time or are picked incorrectly, production lines slow down, schedules slip and costs rise. Too often, companies manage raw material picking with manual spreadsheets, disconnected warehouse systems, or limited visibility between production and inventory. These gaps cause delays, misallocations and inaccurate stock records, therefore creating a ripple effect across the supply chain.
To solve this, manufacturers need an integrated approach that connects warehouse operations, production orders and material consumption data in one system. That’s exactly what Microsoft Dynamics 365 Supply Chain Management provides.
Solving Raw Material Picking Challenges with Dynamics 365
Microsoft Dynamics 365 unifies warehouse and manufacturing workflows, so production teams always have the right materials at the right time. Its built-in production picking capabilities streamline coordination between planners, warehouse workers and production lines.
Key Dynamics 365 Features for Raw Material Picking
- Integrated Production Picking Workflows: Connects warehouse and production operations so materials are automatically allocated and picked for open production orders.
- Material Reservation and Allocation Prioritization: Ensures high-priority jobs get the materials they need first, improving production flow and resource utilization.
- Real-Time Consumption Tracking and Visibility: As materials are picked and consumed, D365 updates inventory balances automatically – reducing stock discrepancies and ensuring accurate costing. In addition, lot numbers are captured accurately in case of a future product recall.
- Mobile-Enabled Picking with BOM Integration: Workers can use mobile devices through the Warehouse Management mobile app to pick directly from the production bill of materials (BOM), reducing errors and increasing speed. The mobile interface is easily configurable to provide an easy user interface with limited options for making mistakes.
Together, these features eliminate manual tracking and improve coordination between your warehouse and production floor.
Implementation Tips for Raw Material Picking
To get the most value from Dynamics 365 raw material picking, setup and process design are key. Below are four best practices to help ensure success:
- Configure Dedicated Raw Material Staging Locations: Create designated staging areas near production lines for incoming materials. This helps streamline the flow of goods from warehouse to production and prevents congestion on the floor.
- Set Up Production-Specific Work Templates and Directives: In D365, define clear work templates that guide workers on how materials should be picked, staged and delivered based on production order type or location.
- Implement Pull-Based Material Release: Automate material releases based on production status updates, such as when a production order is started or reaches a specific operation. This “pull” approach keeps material flow aligned with actual demand.
- Design Picking Strategies Aligned with Production Schedules: Sync picking and staging times with production runs. This avoids early or late deliveries of materials, optimizing both labor and floor space utilization.
These configurations not only improve accuracy but also reduce downtime and waste on the production line.
Measuring the Results
When raw material picking is fully integrated in Dynamics 365, manufacturers see measurable performance gains:
- Reduced Production Delays: Real-time visibility ensures materials are always ready when needed.
- Increased Utilization of Production Lines: Production lines or machines do not sit idle while waiting for raw materials.
- Decreased Inventory Discrepancies: Automated tracking eliminates errors caused by manual updates or paperwork.
- Improved Labor Efficiency: Warehouse staff spend less time searching for materials and more time supporting production.
- Better Schedule Adherence: Streamlined picking keeps production lines moving smoothly and on time.
These outcomes drive higher throughput, lower operational costs and more accurate reporting across both warehouse and manufacturing functions.
Why It Matters
Raw material picking is often overlooked in warehouse optimization, yet it plays a critical role in overall production performance. Disconnected or manual processes can cause costly slowdowns that ripple through every stage of manufacturing.
By leveraging Microsoft Dynamics 365 Supply Chain Management, organizations can integrate raw material picking into the broader production lifecycle. This unified approach improves visibility, accuracy and control to help manufacturers meet production goals with fewer disruptions and less waste.
The Bottom Line
When warehouse and production processes work together, efficiency improves across the board. Microsoft Dynamics 365 makes this possible by connecting raw material picking, material tracking and production orders in one system.
By automating and optimizing these workflows, manufacturers can reduce delays, eliminate inventory discrepancies and deliver products faster – all while maintaining complete visibility and control from warehouse to production line.
