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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) processing
    Supported
  • Directed / system-guided putaway
    Supported
  • Cross-docking
    Supported
  • Quality inspection and holds
    Supported
  • Returns receiving
    Supported

“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

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ERP integrations

Microsoft Dynamics 365Dynamics 365 Supply Chain Management — Warehouse Management (native module)
Prebuilt connector
Bi-directionalSales ordersPurchase ordersInventory levelsShipments

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

Full Dynamics 365 Supply Chain Management Warehouse Management pricing breakdown — cost at 25/100/500 seats, competitor rates & FAQs

Model
Quote-based
Starting price
Dynamics 365 Supply Chain Management is published from around US$210 per user/month
Free trial
No

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.

What does Dynamics 365 Supply Chain Management Warehouse Management cost?

Dynamics 365 Supply Chain Management Warehouse Management publishes a list price. Enter your seat count for an annual figure at that rate.

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11 of the 15 vendors we track in this category publish no list price at all.

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.

Compare Dynamics 365 Supply Chain Management Warehouse Management head-to-head

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The Warehouse Management (WMS) Buyer's Guide

Before you commit to Dynamics 365 Supply Chain Management Warehouse Management, see how it sits against the 15 warehouse management (WMS) systems we track — on capability, ERP integration depth and what each one actually charges for.

Warehouse Management (WMS) Buyer's Guide

15 systems compared · 2026

ERP Research

  • Dynamics 365 Supply Chain Management Warehouse Management compared side-by-side with 14 alternatives
  • ERP integration checklist — what to verify before you shortlist
  • The pricing questions that change the quote
  • A Dynamics 365 Supply Chain Management Warehouse Management evaluation brief, included with the guide
Free Download

Warehouse Management (WMS) Buyer's Guide

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