Dynamics 365 Supply Chain Management Warehouse Management
by Microsoft · Warehouse Management (WMS)
Configurable warehouse management with waves, work templates and location directives
Updated August 2026 · By the ERP Research Editorial Team · Independent and vendor-neutral.
- Works with
Microsoft Dynamics 365- Deployment
- Cloud
- Company size
- Mid-market, Enterprise
- Pricing
- Quote-based
- Founded
- 1975
- Headquarters
- Redmond, USA
Overview
The Warehouse Management capability in Microsoft Dynamics 365 Supply Chain Management is the advanced warehousing module within Microsoft's cloud ERP. It is highly configurable, with warehouse processes defined through a combination of wave templates, work templates, work pools and location directives rather than hard-coded flows.
Work templates define the warehouse tasks and instructions that workers receive on a mobile device, typically as paired pick-and-put actions. Location directives determine where inventory is picked from and put away, evaluated against each work line. Wave templates drive the outbound release-to-warehouse process, generating picking work based on the associated work templates and location directives. The module supports wave, batch and cluster picking, replenishment strategies and a configurable mobile-device experience.
Microsoft also offers a standalone Warehouse Management deployment that can extend these capabilities to organizations running other ERP back ends. The solution is positioned for manufacturers, distributors and retailers operating within or alongside the Dynamics 365 ecosystem.
Screenshots & demo
Demo video hosted on YouTube. Screenshots sourced from Microsoft.
Modules & capabilities
Dynamics 365 Supply Chain Management Warehouse Management covers 17 of 52 capabilities we track in this category
33%- Advance shipment notice (ASN) processingSupported
- Directed / system-guided putawaySupported
- Cross-dockingSupported
- Quality inspection and holdsSupported
- Returns receivingSupported
“Not evidenced” means our research found no public documentation of this capability — the vendor may still offer it. Confirm on a demo.
Common use cases
- Manufacturers and distributors running Dynamics 365 Supply Chain Management
- Operations needing highly configurable warehouse process flows
- Warehouses standardizing pick-and-put work through templates and directives
- Organizations using the standalone deployment alongside a non-Dynamics ERP
- Retailers requiring wave, batch and cluster picking
- Businesses extending warehouse workflows via the Power Platform
Strengths & considerations
Strengths
- Highly configurable process engine using wave templates, work templates, work pools and location directives instead of hard-coded flows
- Standalone Warehouse Management deployment can extend the module to non-Dynamics ERP back ends
- Deep integration with the Microsoft Power Platform and Dataverse for extensibility
ERP integrations
Embedded in Dynamics 365 Supply Chain Management. Microsoft also documents a standalone Warehouse Management deployment for connecting to other ERPs, but that scenario was not independently evidenced.
Connector details independently verified against vendor marketplaces and documentation; last checked 2026-08-11.
Pricing
Licensed as part of Dynamics 365 Supply Chain Management or as a standalone Warehouse Management offering; cost depends on users and modules Get an independent shortlist with pricing guidance below.
Technical & security
- Hosting
- SaaS (multi-tenant)
- Mobile app
- Yes
- Languages
- English
About the vendor
- Founded
- 1975
- Headquarters
- Redmond, USA
- Employees
- ~220,000
- Ownership
- Public (NASDAQ: MSFT)
Alternatives to Dynamics 365 Supply Chain Management Warehouse Management in Warehouse Management (WMS)
Dynamics 365 Supply Chain Management Warehouse Management — frequently asked questions
How are warehouse processes configured?
Processes are configured through wave templates, work templates, work pools and location directives rather than hard-coded flows, giving fine-grained control over how work is created and where it occurs.
Can it be used without Dynamics 365 ERP?
Yes. Microsoft offers a standalone Warehouse Management deployment that can extend these capabilities to organizations running other ERP systems.
What picking methods are supported?
It supports wave, batch and cluster picking, configured through templates and directives.
Evaluating Warehouse Management (WMS)?
Tell us your ERP and requirements and we'll send an independent shortlist — including Dynamics 365 Supply Chain Management Warehouse Management and the best-fit alternatives — with honest pros and cons.