Overcoming the Supply Chain Crisis with Business Central: A Strategic Guide

Supply chain challenges aren’t new—but the last few years have definitely made them feel louder. I've personally worked with a lot of manufacturers trying to get better visibility and control over what’s coming in, what’s going out, and how to keep production moving when the ground keeps shifting.

This article walks through how to avoid those messes. It’s based on real conversations I’ve had with manufacturers—at Summit, in training sessions, and during implementations. If you’re using Business Central and want to get a handle on your supply chain, this is for you.

The Planning Worksheet: Where Things Usually Go Wrong

Let’s start with the Planning Worksheet—because when it's not doing what you think it should, it's almost always due to one of five things:

1. Starting Date is Wrong: This one seems small, but if the start date is off, everything else gets pushed in weird directions. Always double-check it.

2. Components at the Wrong Location: It’s not enough to have stock—it needs to be where you need it. A part sitting in the wrong warehouse might as well not exist.

3. Planning Parameters Are Off: Your reorder policies, safety stock, lead times—these need to reflect how you actually operate. Garbage in, garbage out.

4. Missing Dates: Every date field matters. If you're skipping them or leaving them blank, the system won't have what it needs to make good decisions.

5. Automation Without Good Data: Planning tools are great—but only if your data is accurate. You can’t automate what you haven’t properly defined.

   
   

   

   
   

Manufacturing Modes in Business Central (and Why They Matter)

Business Central can handle all sorts of manufacturing environments, but each one needs a slightly different approach.

• Job Shop – Simple jobs, heavy on costing and tracking.

• Engineer to Order (ETO) – One engineer for every tech on the floor? That’s your clue. These companies often use the Jobs module with an add-on.

• Configure/Assemble to Order (CTO/ATO) – No two finished goods are quite the same.

• Process Manufacturing – Think recipes, not BOMs. Different beast entirely.

• Make to Order (MTO) – You build only when you get an order.

• Make to Stock (MTS) – You build for inventory, based on forecasts.

Knowing what category you fall into changes how you forecast, plan, and set up your data.

What Business Central Actually Gives You

When you’re using it right, Business Central supports:

• Assemblies and full production orders

• BOMs and Routings (with version control)

• Sales order-driven planning

• Subcontracting workflows

• The Planning Worksheet and Requisition Worksheet

• Forecasting tools that plug right into MRP/MPS

There’s also the Jobs module for more project-style manufacturing, which some ETO companies lean on heavily.

What I Tell People About MPS

MPS is often misunderstood. It’s not going to generate supply for all your subcomponents. It’s a tool to help plan finished goods based on known demand or forecasts.

Here’s what I always say: “If you don’t trust the data you’re feeding into MPS, don’t expect magic to come out of it.” Run tests. Look at the dates. Ask yourself, does this actually match how we do things?

Getting Into MRP (Things Get Hairy Here)

MRP digs into your subcomponents and looks at what needs to be made or bought. It’s powerful—but as you layer on more parts and dependencies, it’s easy to miss something.

I’ve seen:

• Orders created in the past because of a setup error.

• Reorder quantities that don’t make sense.

• Parts missing because a setting was skipped.

  
  

My advice? Start small. Get one or two items planning correctly. Then scale up.

Forecasting: Don’t Wait for the Sales Order

This is where things get real. If you’ve got a 12-week lead time, you’re already behind. You need to forecast demand, especially for finished goods.

A few reminders:

• Forecasts get netted out when sales orders come in. They’re not added.

• Forecasts don’t apply to intermediate components—only finished goods.

• Forecasting isn’t a wish list. You need to confirm it with your customers and your vendors.

Don’t Sleep on Transfer Orders

A lot of companies don’t use these—and they should. Transfer Orders help track internal movements between warehouses, especially when you’re dealing with offshore shipments or subcontractors. They give visibility, structure, and packing slips.

Alternate BOMs and Routings: Real-World Flexibility

Things change. You need tools that account for that. Alternate BOMs and routings let you:

• Handle rework or alternate processes

• Subcontract specific operations

• Switch to a different version of the BOM for a different product variant

They also support revision control, which is huge when you're working with regulated industries or high-mix, low-volume production.

Final Thoughts

If you take anything from this article, let it be this: Business Central can absolutely help you navigate the supply chain mess—but only if your foundation is solid.

Start small. Get your planning worksheet right. Don’t let bad data ruin your automation. And don’t try to do everything at once.

If you need help, talk to a partner who gets manufacturing. It’ll save you a lot of time, money, and frustration.