Blog Series on Microsoft Dynamics 365 Business Central Wave 2, 2026

Blog 3: Smarter Inventory Planning and Forecasting

The End of Spreadsheet-Based Inventory Planning?

Business Central continues to strengthen planning and forecasting capabilities with investments in demand forecasting, supply planning, inventory forecasting, and availability management.

ERP365 Perspective

Planning tools are becoming increasingly valuable as supply chain volatility continues across New Zealand and Australia.

For ERP365 customers in manufacturing, distribution and food processing, the industry impact is direct: better planning can reduce stockouts, protect customer service levels, lower excess inventory and release working capital tied up in slow-moving stock.

The advantage is not only improved purchasing accuracy, but a more disciplined planning culture where lead times, safety stock, reorder policies and forecast assumptions are reviewed using Business Central data rather than spreadsheet judgement. The expected outcome is greater confidence in supply decisions, fewer urgent freight costs, and improved resilience when demand or supplier availability changes.

Achievable Outcomes

• Reduce stockouts and urgent freight costs through more reliable planning recommendations.

• Release working capital by lowering excess and slow-moving inventory.

• Improve confidence in purchasing decisions by basing plans on Business Central data rather than spreadsheet judgement.

What's New

Business Central 2026 Wave 2 adds a more focused planning message for inventory-intensive businesses. The areas main areas we see as important are:

• Multi-level supply planning: stronger support for planning demand and supply across finished goods, components, raw materials, production requirements, purchase orders and transfers, helping planners understand the downstream impact of demand changes before shortages occur.

• Demand forecasting: continued emphasis on using forward-looking demand signals, historical sales patterns and forecast assumptions to guide replenishment decisions rather than relying only on recent sales or manual spreadsheets.

• Inventory forecasting: improved focus on projected inventory positions, excess stock risk and future availability, giving buyers and planners earlier visibility of where inventory investment may be too high or too low. 

• Order promising: better support for making realistic customer delivery commitments by considering supply, demand, lead times and available inventory before confirming dates. 

• Reservation calendars: clearer planning around when stock is reserved, available or expected, helping teams manage competing demand and avoid over-committing critical inventory. • Availability management: stronger visibility of what can be sold, produced, transferred or purchased, supporting more reliable decisions across sales, purchasing, warehouse and production teams.

Key Benefits

• Better purchasing decisions

• Reduced stockouts

• Lower inventory carrying costs

• Improved service levels

Questions Leaders Should Ask

• Which items regularly run out of stock?

• Where are excess inventory levels occurring?

• How accurate are current forecasts?