Why manufacturers should use Microsoft Dynamics 365 Business Central

ARTICLE | May 14, 2025

Authored by RSM US LLP

Manufacturing companies require innovative solutions to streamline operations, increase efficiency and drive growth to stay competitive in today’s landscape. Enterprise resource planning (ERP) systems play a crucial role in achieving these objectives by providing integrated tools for managing finances, the supply chain, production and more.

Microsoft Dynamics 365 Business Central stands out as one of the leading ERP solutions available for manufacturing companies regardless of their size, process complexity, costing requirements and manufacturing methods. With its depth of functionality, Business Central is a powerful and versatile platform tailored specifically for the manufacturing industry. It is a robust ERP system that can transform operations and help manufacturing companies thrive in the digital age.

Below are five key reasons manufacturing businesses should consider adopting Business Central as their ERP system:

1. Comprehensive manufacturing capabilities

Business Central offers a comprehensive suite of manufacturing functionalities designed to optimize your critical production processes. Key features include:

• Production planning: Business Central provides advanced tools for demand forecasting, production scheduling and capacity planning which enable you to optimize resource utilization and minimize lead times.
• Inventory management: The platform facilitates real-time tracking of inventory levels, materials requirements planning (MRP) and warehouse management, generating optimal stock levels and efficient supply chain management.
• Distribution management: With tools that assist with managing inventory stock counts, production time calculations and fulfillment of orders, Business Central creates seamless distribution, preventing manual errors.
• Shop floor control: Business Central supports shop floor operations with features such as work order management, routing and job costing, empowering you to monitor and control production activities effectively.
  

2. Seamless integration with Microsoft’s software ecosystem

One of the standout advantages of Business Central is its seamless integration with Microsoft's broader ecosystem. This includes modern workplace apps including Office 365 to Power Platform functionalities like Power BI and Power Automate. This integration offers several benefits, including:

• Unified user experience: Users can access Business Central directly from familiar tools like Outlook and Excel, enhancing productivity and user adoption.
• Enhanced reporting and analytics: Business Central leverages Power BI for advanced reporting and analytics, providing actionable insights into manufacturing performance and trends.
• Customizable workflows and automation: With Power Automate, you can automate repetitive tasks and workflows, improving operational efficiency and reducing manual errors.
  

3. Scalability and flexibility

Business Central is designed to scale alongside growing manufacturing businesses. Whether you're a small workshop or a large-scale production facility, the platform offers flexibility in deployment options (cloud, on-premises, hybrid) and customization capabilities. As your business evolves, Business Central can adapt to support new requirements and accommodate increased transaction volumes seamlessly.

4. Enhanced collaboration and communication

Effective collaboration is essential in modern manufacturing environments. Business Central facilitates collaboration by:

• Enabling real-time sharing of data across departments, suppliers and partners
• Supporting collaborative document management and version control
• Streamlining communication through integrated messaging and team collaboration tools

5. Built-in security and compliance

Manufacturers handle sensitive data related to products, customers and financial transactions. Business Central incorporates robust security features, including role-based access controls, data encryption and audit trails to safeguard critical information and ensure compliance with industry regulations (e.g., GDPR, ISO standards).

The takeaway

Overall, Business Central offers manufacturers a powerful and integrated ERP solution that can drive operational excellence, agility and growth. With its comprehensive manufacturing capabilities, scalability, built-in security features and seamless integration with familiar software, Business Central is a leading ERP system for the manufacturing industry.

Streamline your processes, make smarter decisions and accelerate growth with Business Central

RSM can help you start slowly and add complexity as needed by adding features to your ERP capabilities and integrating with Microsoft 365 and the Power Platform. We have extensive, relevant experience in your industry and wield the technical skills required to meet industry-specific challenges and objectives. Learn more about RSM's Microsoft Dynamics 365 Business Central services or reach out to our Business Central advisors.