Our thoughts on D365 warehouse management only mode
Sep 25, 2023Why this matters
Over the years, we’ve supported organizations at every stage of their warehouse journey from early sales cycles to post-go-live optimization.
One thing has always been consistent: if you were already invested in the Microsoft ecosystem, implementing WMS within D365 Supply Chain Management was a natural fit embedded, scalable, and tightly integrated.
However, there were also clear cases where D365 WMS simply wasn’t the right option.
Historically, WMS was not a fit if you:
- Were not already on the Microsoft platform
- Wanted WMS capabilities without a full ERP implementation
- Had complex, multi-entity or multi-country rollout requirements
With the introduction of Warehouse Management Only Mode, that changes.
Were do you fit now?
This is where things get interesting. If you previously fell outside the “ideal” D365 profile, you likely have a clear path forward today.
- Running SAP (or another ERP) but need better WMS
Your situation:
You’re using an ERP like SAP and have identified strong WMS capabilities within the D365 ecosystem (including ISV solutions), but implementing full D365 SCM wasn’t feasible.
What changes now:
You can implement WMS independently, without replacing your ERP.
What this unlocks:
- Access to the D365 WMS ecosystem
- Ability to leverage specialized ISV solutions
- Incremental transformation instead of full ERP replacement
- Mid-sized organization using Business Central
Your situation:
You’re a single- or limited-warehouse operation (e.g., ~$50–100M revenue), running Business Central and looking to upgrade warehouse capabilities.
What changes now:
You can combine:
- The simplicity of Business Central
- With the advanced capabilities of D365 WMS
What this unlocks:
- Low operational overhead
- Enterprise-grade warehouse functionality
- A clear path to scale when needed
- Large enterprise with complex global operations
Your situation:
You operate multiple warehouses across countries and legal entities, and standardizing both ERP and WMS has always been a major challenge.
What changes now:
You can roll out WMS independently from ERP standardization.
What this unlocks:
- Deploy WMS globally first
- Standardize warehouse processes across regions
- Reduce risk by decoupling large transformations
- Existing AX customers not ready for full D365 migration
Your situation:
You’ve heavily invested in AX and moving everything to D365 at once is costly and disruptive.
What changes now:
You can deploy WMS first and integrate it with your existing environment.
What this unlocks:
- Gradual transition to D365
- Faster time-to-value from WMS improvements
- Reduced disruption to core business systems
- Shared warehousing scenarios
Your situation:
You operate shared warehouses across multiple legal entities a historically complex or limiting scenario.
What changes now:
You can separate:
- Warehouse operations
- From trading/legal entity systems
What this unlocks:
- Simpler architecture
- More flexible warehouse setups
- Easier scaling across entities
What this means for the market
Microsoft’s timing is not accidental.
Following the strong positioning of D365 WMS in the market, this new operating mode significantly lowers the barrier to adoption.
As of release 10.0.36, the feature is available in preview. While some limitations remain, the direction is clear:
WMS is becoming accessible to a much broader audience.
Final thought
Warehouse Management Only Mode introduces something that wasn’t previously possible:
a modular path into the Microsoft supply chain ecosystem.
If you previously didn’t fit the model you likely do now.
Want to explore what this looks like for your setup?
We’re happy to discuss different approaches based on your landscape and priorities.
For other partners and WMS enthusiasts, we have prepared a step-by-step guide on how to use and test the new Warehouse management only mode. Go back to the learning center to see the guides.