This episode discusses the persistent challenges of achieving accurate freight costing within Microsoft Dynamics 365 Business Central. It highlights how manual data entry errors and disconnected carrier systems create financial blind spots and costly reconciliation issues. The conversation offers a technical perspective for warehouse and finance teams on why native BC tools fall short and explores integrated application solutions to improve real-time shipping data integrity.
Challenges of Achieving Shipping Accuracy in Business Central
Transcript
Emma: Okay, let’s unpack this. If you run financials or you know, you’re managing a busy shipping dock, you know this exact feeling. It’s that moment of dread the stack of carrier invoices lands on your desk, or maybe even worse, that carrier chargeback statement shows up and you look at it and you just realize the freight cost you thought you had in your system, well, it’s not even close to the final bill. And that gap, that’s the hidden cost that just wreaks havoc on everything. So this deep dive is for those of you working inside the Microsoft Dynamics 365 Business Central Environment, or BC as we’ll call it. We’re going to be focusing on a pretty universal challenge. Why getting consistent shipping accuracy and a true handle on your freight costs feels like this constant uphill battle if you’re only using BC’s native tools. And our mission today is, well, it’s pretty clear we’re going to dig into the sources to see exactly where BC’s architecture falls short, why that creates these financial blind spots and what specific integrated tools can actually bridge that gap for your warehouse and finance teams.
Ryan: That’s it exactly. I mean, when we look across all the source material, the fundamental problem really just boils down to a failure in real time data integrity. The core issue isn’t that you’re shipping the wrong item, it’s that the data about the shipment. So the precise weight, the dimensions, the carrier service you picked, that data is often just an estimate or it’s just plain wrong at the point of shipment.
Emma: And the stakes there are just huge.
Ryan: Oh, massive. Yeah, you mentioned LTL and FTL shipments and that is a perfect example. A tiny misclassification of a pallet’s freight class that can instantly flip a profitable order into a loss. These little discrepancies, they completely obscure the true cost of freight. And that because any kind of accurate operational budgeting, well, almost impossible if your budget is based on estimates. You’re just constantly fighting a losing battle when it’s time for financial reconciliation, right?
Emma: You have to capture that cost before the truck leaves.
Ryan: Before the truck even backs into the bay, ideally.
Emma: Okay, so let’s talk about the root cause here. What we’re calling the manual trap. Business Central is a powerful erp, right? It manages sales orders, inventory, the general ledger, it handles all that core data. So what’s actually going on inside this robust system that’s causing these, you know, systemic, expensive errors.
Ryan: What’s fascinating here is that the key Challenge is actually BC’s native design philosophy. At its core, Business Central is an accounting and transaction system.
Emma: Okay.
Ryan: It’s built to record your internal activities, your inventory flow. So when it comes to shipping, it just assumes that the data you’re putting in, the weight, the dimensions, that estimated cost is already final and accurate. It basically treats freight cost as a flat placeholder on the sales order.
Emma: So it’s not actually designed to validate any of that against the external world in real time.
Ryan: Precisely. It relies almost entirely on manual data entry and these disconnected workflows. If a shipper types in pound 40 for a package that really weighs 42, BC just says, okay, great, and accepts it, no questions asked.
Emma: It’s a record keeper, not a fact checker.
Ryan: Perfect way to put it. It just lacks that embedded validation against live carrier rules. The system is designed to manage the transaction record, not to be in constant sync with these complex, ever changing external carrier systems.
Emma: I can absolutely see the financial fallout from that because the shipping details are just logged as an estimate. The actual freight cost validation, the reconciliation, all of that gets pushed down the road. It doesn’t happen until the carrier sends their final audited invoice.
Ryan: And that’s the reconciliation nightmare we hear about constantly. Your finance teams are suddenly forced into this massive manual alignment process. They’re trying to match an invoice line item from three weeks ago with an original sales order. It’s a mess.
Emma: And that’s where the chargebacks come from.
Ryan: That’s where they come from. It leads to huge delays, data inconsistencies, and, yeah, those really painful chargebacks. It’s a fundamental gap in the process.
Emma: So if BC assumes that this is all managed externally, what are the two core features that are just missing that let this manual trap keep happening?
Ryan: It’s the absence of two things integrated real time rate shopping and automated documentation generation. Okay, think about what a shipper has to do manually in native bc. They look up the package details, okay? Then they go to Carrier A’s website, get a quote. Then they open another tab, go to Carrier B’s website, get another quote. Then they have to manually pick the best rate, go back to bc, type in the estimated cost, and then probably use yet another piece of software to actually print the label.
Emma: Wow, that sounds incredibly inefficient and just so prone to error, especially when things get busy.
Ryan: It is. And because there’s no integrated real time check against the carrier Systems. No API connection that instantly verifies the package details against the carrier’s live rates. Any small error goes completely unnoticed.
Emma: Like a wrong dimension or something.
Ryan: Exactly. A fractional difference in weight. A forgotten dimension that triggers a huge dim weight penalty. A simple mistake in the service level. You won’t know about it. You only discover that true cost when the final bill lands on your desk weeks later.
Emma: All right, here’s where it gets really interesting. Because if manual data entry is the main vulnerability in this whole ecosystem, then the solution has to be integrated controls that work in real time. We have to stop relying on, you know, human accuracy in such a high stakes process. So we’ve laid out BC’s limitations. Let’s talk about the solutions, the applications that fix this. Your operational teams, your warehouse managers, logistics coordinators. They need tools that embed these missing controls directly into bc. It’s about creating one single source of truth, right?
Ryan: Exactly. The source is very clear on this. You need a coordinated stack of applications that talks directly to Business Central on one side and directly to the carriers on the other.
Emma: So what’s the first piece of that puzzle?
Ryan: The first pillar is an application called Dynamic Ship. And this thing fundamentally changes how you think about execution. Instead of leaving BC to go shop for rates, Dynamic Ship integrates real time rate shopping and full carrier connectivity right inside your Business Central screens.
Emma: So you never leave the environment.
Ryan: You never leave. When you’re ready to ship a sales order. The application uses carrier APIs and we’re talking dozens of different carriers here to pull back instantaneous contract specific rates.
Emma: That sounds like it solves the rate shopping and the documentation headache in one go. But what’s it really doing under the hood? Is it just pulling a number?
Ryan: Oh, it’s doing way more than that. It’s not just pulling a number. It’s providing pre posting validation. It already knows your negotiated rates. It accounts for fuel surcharges. It verifies that a service is even available for that address. And here’s the crucial part. It automates the shipping label generation and then updates the sales order with the final audited cost instantly before that shipment gets posted to your general ledger.
Emma: Ah, so that’s how you close the reconciliation gap.
Ryan: That’s how you close it. You never have a gap to begin with.
Emma: Okay, that covers the financial rate risk. But the sources also really stressed what happens on the physical warehouse floor. If the person packing the box types in the wrong dimension or just grabs the wrong size box. No amount of fancy rate shopping is going to help.
Ryan: Is it and that is the second pillar of a controlled environment. That’s where a tool like Warehouse Insight comes into play. It focuses entirely on physical accuracy using mobile devices and barcode driven verification right on the warehouse floor.
Emma: So it’s forcing discipline into the process.
Ryan: It forces discipline. Exactly. When you scan items into a package, the system confirms you have the right product. But critically, it also locks down the dimensional accuracy. This is so vital because of dimensional weight, where carriers charge you for volume, not just scale weight.
Emma: Right.
Ryan: If a warehouse employee tries to skip entering the dimensions for a big light box, Warehouse Insight makes sure those details are captured and then pushed over to Dynamic Ship for a truly accurate RAID calculation.
Emma: Got it. And you also mentioned license plating LPNs. For someone who isn’t maybe, you know, deep in advanced logistics, how is an LPN different from just a regular item barcode? What problem is that?
Ryan: Solving that is a great question. A standard barcode identifies a single thing, right? A single 6Q of a laptop charger, a license plate number or LPN identifies a whole container, a unitized load. Think of a pallet or a tote. It’s a temporary ID for a whole group of goods.
Emma: Okay, I see.
Ryan: This is absolutely essential for more complex high volume operations. Instead of scanning 50 individual boxes on a pallet for an LTL shipment, the warehouse worker just scans one LPN. It lets you move, track and ship entire containers with a single scan, which drastically improves accuracy.
Emma: So the synergy is really the key here. Warehouse Insight makes sure the physical data is correct. Dynamic Ship uses that correct data to get the accurate carrier rate and the documents. And they both feed that final clean cost data right back into the business central ledger.
Ryan: Exactly right. That coordinated use promotes what the sources call integrated execution controls. You’re moving from a reactive state waiting for chargebacks to a proactive one where accuracy and cost visibility are just built into the process in real time.
Emma: Okay, let’s shift gears and tackle some common misunderstandings. Because when a company realizes native BC doesn’t do this, I imagine the first thought is, well, I’ll just build an integration myself. We need to tackle these assumptions head on. So misunderstanding number one, the belief that standard Business Central can be easily customized in house to handle all this. Why is that DIY approach usually a mistake?
Ryan: That assumption just fundamentally underestimates the complexity of carrier integration. I mean, every major carrier, FedEx, UPS, USPS, DHL, and all the LTL providers, they each have their own unique API, their own application programming interface, and they’re all different, completely different. Different data formats different connection protocols. And this is the real killer. They update their rules and their APIs constantly. So if you build a custom integration, you are now responsible for the maintenance. You have to monitor, update and recertify dozens of distinct API connections forever.
Emma: So it’s not the initial connection that’s the real hurdle. It’s the continuous day to day maintenance of all these moving targets that makes it so unsustainable.
Ryan: Precisely. You want your internal IT team focusing on your core business logic, not tracking API changes for 30 different shipping companies. It just doesn’t make sense.
Emma: And the second myth we need to dispel goes back to the warehouse floor. The assumption that barcode verification is somehow optional or may be overkill for getting cost accuracy.
Ryan: If we connect this to the bigger picture, the operational necessity of barcode based verification is it’s just not optional for financial hygiene. If your shipping system is integrated, but the data going into it is being typed in by hand.
Emma: Garbage in, garbage out.
Ryan: It’s the classic example. The integration is useless. Barcodes and LPNs are the only way to lock down data accuracy at the source. Out there in the physical world, the mistake finance teams often make is they neglect this physical link. They have to understand that if they want clean reconciliation data, they have to mandate these controls on the packing floor.
Emma: Let’s summarize the key action points then. If an operations team is trying to get their freight costs under control within bc, what are the three absolute non negotiables they need to focus on?
Ryan: Okay. First, they have to acknowledge that the native system’s dependence on manual data entry is a guaranteed path to errors. You have to mitigate that with automation. Right. Second, unify the workflows. Disconnected systems for shipping and finance will always create that reconciliation backlog. Okay, and the third and third and this is the most critical, they have to acquire the functionality. Real time. Carrier rate shopping, validation and automated label generation are simply not native to Business Central. They have to be added with specialized integrated applications.
Emma: So what does this all mean for you, the learner? The path forward here is pretty clear. Business Central provides that foundational framework for your financial transactions and it does that job very well. But to get accurate freight costing and real operational efficiency, you have to take a more disciplined approach. You have to bring in specialized integrated applications like Dynamic Ship and Warehouse Insight. These tools are so vital because they enforce data integrity in real time. Errors get caught and validated before a package can even leave the loading dock. And this intentional investment, it creates a controlled environment that just dramatically reduces manual errors, eliminates those surprise chargebacks and finally streamlines the link between what’s happening in the warehouse and what’s happening in finance.
Ryan: And this all leads to a final, provocative thought for you to consider. Given that this real time integration can now provide instant automated validation of weight, dimensions and carrier rates, what does that mean for the human element in logistics?
Emma: That’s a great question.
Ryan: If the system is automatically capturing and validating all that data, the logistics specialist is no longer a data entry clerk. They’re not an invoice reconciler anymore. Their role has to evolve. They can spend far less time correcting errors, and way more time focusing on purely strategic functions. Deep dive carrier negotiations. Optimizing service levels for a better customer experience. Building a more resilient supply chain. This strategic shift from tactical data entry to high level optimization, that’s truly the next most exciting frontier of supply chain efficiency for every single PC user out there.