Business value

Maximize customer satisfaction on delivery performance and still save on shipping and transport? The following common scenario can be a challenge in Microsoft Dynamics 365 for Finance and Operations.

• Remaining backorders should be shipped with highest priority. The situation that a backorder is shipped later than a regular order that was entered afterwards, should be avoided.   
• In the morning, it makes sense to start picking sales orders that are fully reserved. For this moment postpone the picking of partial reserved sales orders until a later time today. Even if the customer would accept a fulfillment rate less than 100%, partial shipping should be avoided.
• The orders that are still waiting for incoming goods expected to arrive today, can probably be picked in the afternoon.

To maximize the number of DIFOT (delivered in-full, on-time) shipments, and to prioritize backorders, Advanced Warehouse Management  includes automatic functionality to allocate scarce inventory in a smarter way.

Microsoft Dynamics 365 for Finance and Operations perfectly shows the lines to be picked for a separate shipment, however it lacks overall visibility of all lines in a wave. Advanced Warehouse Management adds extra visibility.  

In a warehouse, often 60% of the labor hours or more is used for picking activities. So a considerable costs can be saved by reducing the travel distance per picking route. Microsoft Dynamics 365 for Finance and Operations always uses a default picking sequence through the warehouse.

Advanced Warehouse Management adds new pick line sequence heuristics (mathematic rules of thumb) to find a shorter picking route through the aisles of the warehouse, both for single pick lists and for cluster pick lists. This can easily save 10-20% of the picking time.

As stated above, in a warehouse, the larger part of labor hours is used for picking activities. So a lot of travel time and a lot of costs can be saved by combining multiple picking lists.
Assumption for cluster picking is that the size of pick bin (tote) can be determined upfront, so bins will not be full before the cluster picking is finished. In practice, the physical dimensions and / or weight of all items should be defined in Microsoft Dynamics 365 for Finance and Operations. Only include works in a cluster that do not exceed a certain weight or volume.
In case one of the bins is full during cluster picking though, the user can pass and cancel the cluster, and the cluster has to be broken on the PC

Challenge in Microsoft Dynamics 365 for Finance and Operations is that there is no way to prepare clusters, other than printing each work header and scanning work headers that appear to be an efficient combination.

Advanced Warehouse Management has a paperless process that enables warehouse work preparation and clustering in an efficient way, and auto-directs the cluster to the picker on the floor.

Release to warehouse strategy

Warehouse management > Release to warehouse > Automatic release of sales orders

In the Automatic release to warehouse dialog Microsoft Dynamics 365 for Finance and Operations has these options:

• Quantity to release: All or Physical reserved.
• Allow release of partially released backorders: Yes or No
• Keep reservations on fulfillment rate failure: Yes or No

Challenge in Microsoft Dynamics 365 for Finance and Operations:

• it is not possible to release backorders only
• the definition of backorder is not according to generally accepted principles (the Microsoft Dynamics 365 for Finance and Operations definition only includes orders where already some order line(s) have been released to the warehouse).
• the minimum fullfillment requirement on the customer does not work for backorders
• without a minimum fullfillment requirement on the customer, expensive partial shipping can not be avoided automatically

Advanced Warehouse Management optimizes maximum DIFOT against minimum shipment costs. New parameters are added to the automatic release of sales orders dialog. This enables smart allocation of inventory.

Yes/No slider “Use release priorities”

When use release priorities, open sales orders within the selection of records to include are divided into:

Which category should be prioritized when assigning free inventory?

The new Release priorities functionality allows to discern for each before mentioned groups between “in full” deliveries and partial deliveries.

If this functionality is used, some standard settings in the release dialog are enforced:

• the quantity to release is always physically reserved
• partially released orders are allowed
• if the release would only be blocked by the fulfillment criterium the reservations are kept on fulfilment failure

Yes/No slider “Deliver remaining quantity complete”
In the automatic release sales orders screen, select which of the above backorder situations should be released to warehouse when fully reserved.

Advanced Warehouse Management will now start with the selected category of orders with the highest priority (1) as set in the warehouse parameters, and tries to reserve the whole order.
 

Yes/No slider “Deliver remaining quantity partial”
In case the remaining quantity of an order can not be reserved completely, select in which of the backorder situations, delivery of the partial quantity should take place though.

• No: if the remaining quantity can only be reserved in part, the current reservations attempts for the full order are discarded. Reservations that were created earlier, remain.
• Yes: partial deliveries are released to the warehouse, but only if the fulfillment threshold is met. Reservations are kept in case of a fulfillment rate failure.
  All successfully reserved order lines within selection are released to warehouse.

Suggested use of release priorities

In the warehouse management parameters, define the relative priorities of back orders and on-time sales orders.

Automatic release of sales orders can be setup as a batch process, or multiple batch processes running at different times of the day with different settings.

In a warehouse, there is often a daily schedule. Example:

To achieve the best DIFOT (deliver in full on time), the highest percentage of lines delivered on time, efficient shipment of backorders, against minimal transport costs, for the example above, the following setup is advised:

Before 14:30: completely shippable orders and backorders that can be shipped in full

With the release priorities it is possible to setup automatic release of sales orders to warehouse at 9:30 for wave 1, at 11:00 for wave 2, at 13:00 for wave 3. In these waves, only orders should be picked that are already completely shippable. This is to avoid partial shipping with extra transport costs, even if the customer has no fullfillment requirement.

After 14:30 Completely shippable (back)orders and partially shippable orders that are on time 

Automatic release of sales orders to warehouse at 14:30 for wave 4:

• all orders where the remaining quantity can be shipped in full, as well as
• the orders that are on time, but are partially shippable should be picked (as long as this is not prevented by the required fullfillment percentage). 

Load line overview (shipment line overview)

Warehouse management > Inquiries and reports > Load line overview

On the wave screen, one can easily see the shipments, but Microsoft Dynamics 365 for Finance and Operations does not provide a total overview of wave lines nor work lines.
Advanced Warehouse Management adds two important screens to be able to see what is in a wave in a glance. Note that load lines and shipment lines are basically the same.

In the Advanced Warehouse Management Load line overview, the load lines (or shipment lines) can be filtered on expected zone group, wave, shipment, load, order number, item, item search name, quantity, unit, code 1 – 4, package class ID, pack size, physical dimension group

To get a quick overview of the content of a wave, before it is processed the form Load line overview can be opened from the wave as well.

Suggested use of the Load line overview: even before the wave processed is over multiple loads (both inbound and outbound), the Advanced Warehouse Management Load line overview provides information about the nature of items, weight, volume, dangerous goods, filter codes etc. This information might be important for timely preparing dangerous goods provisions, arranging transport etc.

Work line overview

Warehouse management > Inquiries and reports > Work line overview

In the Advanced Warehouse Management Work line overview, the work lines can be filtered on expected zone group, wave, shipment, load, order number, work type, work status, zone ID, location, item, item search name, work quantity, remaining quantity, unit, estimated time, actual time, code 1 – 4, package class ID, pack size, physical dimension group, work class.

To get a quick overview of the content of all work within a wave, after it is processed the form Work line overview can be opened from the wave as well.

Suggested use: get a filterable overview, e.g. when there is a problem with a specific item, just filter all open work lines to avoid shipping. Or detect any problems that certain workers might have had while picking specific products.

Picking route optimization

If the wave process steps for the current wave template include picking route optimization, and the wave gets processed, after the work is created Advanced Warehouse Management will check whether an alternative sorting of the work lines will result in a shorter travel distance. Two heuristics are evaluated:

For a detailed description of the heuristics please refer to the interactive warehouse of prof. K.J. Roodbergen.

http://www.roodbergen.com/warehouse/

Setup warehouse

Warehouse zone groups

Warehouse zone group setup

Warehouse cross aisles

Warehouse blocks

Aisles

Location layout

Warehouse management > Work > All work > Button Location layout

Warehouse management > Inquiries and reports > Route optimization > Location layout

For the selected warehouse zone group a schematic graphical representation of the warehouse blocks, aisles and cross aisles is visible.

If picking route optimzation is used, the location layout can be opened from the work, and the locations of this work are displayed with colored cells.

Work heuristic results

Warehouse management > Work > All work > Button Work heuristic results

Warehouse management > Inquiries and reports > Route optimization > Work heuristic results

Per work the outcomes of the applied heuristics are stored. The best alternative is selected automatically. If picking route optimization is used, the work heuristic results can be opened from the work.

Work header aggregated information

Warehouse management > Work > All work

Extra fields with aggregated information are added to the work header. Useful for automatic selection of optimal cluster candidates, or filtering and sorting on the mobile device in work lists.

These fields are available for most work types, incl. Sales picking work, Purchase put away work, Cross docking work and Packed container picking work. 

The aggregated fields are filled automatically when the work is created. The fields are not synchronized afterwards, e.g. when a work is split or inventory with existing work reservation was moved etc.

Setup released products with physical dimensions (length, width, height, volume, weight), and a package size category.

No further setup required.

Mixed LP picking - Locate LP

Warehouse management > Setup > Work > Work templates

Purpose: if a mixed license plate exists for the same destination, it should be sufficient to scan only the mixed LP code, without the need to scan individual products on that mixed license plate. Standard Microsoft Dynamics 365 for Finance and Operations has only limmited functionality for mixed LP picking.

Though there are constraints and restrictions, through Advanced Warehouse Management mixed LP cross dock and pick is now available for many use cases.

• A thorough setup of pick work template and pick location directives is prerequisite!
• Location for the mixed LP must have a location profile that is LP-controlled
• Sort and break the work per location
• One work per mixed license plate
• Ideal situation is each mixed LP on a separate location, or any other splitting logic that guarantees one work per mixed LP
• The whole mixed license plate must have the same destination
• If the item on the mixed LP also occurs in other locations and / or other license plates, use the pick strategy crossdock linked orders
• On the work template a new check mark Locate LP will, after the work is created,
  • search on the specific work line locations for the license plate, and if found, write that license plate on the work line (field located license plate),
  • and will set the work line flag ask for new license plate to no
  • and will fill the target license plate on the work header if all lines are on the same located mixed LP.
• The work can be picked through the standard user directed mobile process Handle by LP
  • this standard mobile process has feature limitations: advice is to setup a detour data inquiry list of mixed LPs to be picked (open work sorted on work start location)

Cluster picking planning

https://learn.microsoft.com/en-us/dynamics365/supply-chain/warehousing/system-directed-cluster-pick

Deprecation end of 2024:

The work screen facilitates the warehouse planner to identify the best pick list cluster candidates.

E.g. if the works should be clustered in groups of four, the planner can filter on all works for which the weight and the volume and the longest length does not exceed a specified value.

A typical procedure can be:

• Filter the open work on volume < 0.01 and number of lines < 5 and longest item length < 0.30.
• Add this and other filtered work list page to a work space Outbound work planning.
• Select all or make any manual selection.
  • Note that the selected works should all be open, in the same warehouse, not part of an existing cluster yet.
• Press Add to cluster.
• The dialog displays the number of work headers, total lines, total weight, total volume
• The user can select a cluster profile ID. The number of clusters that will be created is based on the total number of works divided by the maximum number of works per cluster, rounded up
• Each work within a cluster gets a temporary target license plate equal to underscore + work ID. This value may be overridden when picking the first line in a plastic bin.

The optimal route sequence of multiple combined works can be different from the optimal route sequence of the single works. Therefor, after the clusters are generated, Advanced Warehouse Management  can apply route optimization to the cluster automatically. According to the heuristics None, Largest gap, and Aisle by aisle, Advanced Warehouse Management calculates the shortest distance, and will update the sort codes of the work lines according to the optimal heuristic

Setup cluster profile

Setup mobile device menu item

Unblock or block multiple work headers

Warehouse management > Work > All work > Button Block or unblock work

Microsoft Dynamics 365 for Finance and Operations  allows to release all work within a wave automatically or by hand. Individual work can be unblocked or blocked, and in the past Microsoft Dynamics 365 for Finance and Operations did not enable this work blocking or unblocking for multiple selected work headers.

Similar functionality was added in Advanced Warehouse Management before, but is now part of standard Microsoft Dynamics 365 for Finance and Operations.

Copy address note to sales header

Accounts receivable > Setup > Accounts receivable parameters

On the Accounts receivable parameters, specify whether address notes must be copied to the sales header. Set up the address note type that is copied.

Accounts receivable > Customers > All customers > Fast tab: Addresses > More options: Advanced > Paperclip

On the address, it is possible to attach a simle note. When the sales order address is entered or changed, the applicable address note is retrieved from the address. This note is copied to the shipment automatically. The information is visible on the shipment and can be displayed on the packing station (in the Warehouse management parameters, set the same document type for packing station texts).

Automatic shipment carrier selection rule

In standard Microsoft Dynamics 365 for Finance and Operations, the mode of delivery (which can be a combination of carrier and carrier service) can be defaulted from the customer address or the customer. On the sales order (line), this default can be overridden. However, the system does not advise a carrier and service based on the totals and the geographical area.

The Advanced Warehouse Management automatic shipment carrier selection rule can be used in a wide variety. Examples:

• when a volume that fits in our delivery van needs to be shipped to an address within our region, it is not necessary to ship through an external carrier
• when the value of a shipment exceeds a certain amount, the carrier service "High value" must be selected
• the decision whether to send individual goods per carton through carrier A or B, or combine multiple goods on a mixed shipping pallet and send through carrier B or C, often depends on volume and weight.

Note that in theory it is possible to set up the TMS module, but this is generally an overkill on one hand, and on the other hand still does not comply with daily requirements.

Release sales orders or transfer orders to warehouse through one of these functions:

• Release from sales order / transfer order
• Automatic release to warehouse
• Manual release to warehouse form
• Load planning workbench, release load to warehouse

At the moment the wave is processed, and the functionality is activated on the wave template through the new wave process method "Automatic carrier selection rule":

• first these values are calculated and stored in new fields on the shipment:
  • gross volume
  • gross weight
  • sales value (not for transfer orders)
  • longest length
  • maximum parcel girth (circumference + length)
• unlike the standard display methods for weight and volume, these new fields can be used as criteria for selecting or sorting:
  • work templates
  • location directives
  • license plate labels
  • open shipments
• the shipping carrier and the carrier service can automatically be set on the shipment
• optionally the corresponding mode of delivery can be updated on the sales order line
• the layout of pick labels, license plate labels and ship labels can be based on the carrier and service

The automatic shipment carrier selection rule updates the carrier and service

• on the shipment (when there is no load yet)
• on the load and the shipment (when there is already a load and the current shipment is the only shipment on this load)

Setup

Wave process method

Warehouse management > Setup > Waves > Wave process methods

Regenerate methods. This will insert a.o. the method DYSDWAAutoCarrierSelectWaveStepMethod.

Warehouse management > Setup > Waves > Wave templates

Add the method DYSDWAAutoCarrierSelectWaveStepMethod - Auto carrier select to the wave template, immediately after the validateWave, and before the postLoads

Shipment carrier selection rule

Warehouse management > Setup > Release to warehouse > Shipment carrier selection rule

In this form the setup is defined for which ranges of volume, gross weight, sales value etc. in combination with the geographic location of the delivery address a certain carrier must be selected. Optionally, the setup can depend on the shipment consolidation policy.

For easy setup, the button Copy will insert a duplicate of the current setting at the end of the list.  

Constraint validation

Optionally, the constraints for the carrier and service can be validated. If there is a restriction, the next rule will be evaluated. Use this functionality e.g. to exclude a carrier when the shipment contains flammable items, or when a customer does not accept certain carriers on his yard, or when there is a road restriction at a customer for large vehicle carriers etc.