Addressing Planning and Forecasting Challenges in Business Central

Introduction to Forecasting and Planning

Hey, good afternoon or morning everyone. This is Mark here. Today we’re going to go through forecasting and planning inside Business Central using some of the tools that Insight Works has to offer.

We’ll start with a brief overview of who we are and the solutions we provide, then jump into how you can use Business Central to do planning and forecasting more effectively. This session will run about 45 minutes depending on questions, so feel free to enter questions as we go.

Overview of Insight Works Solutions

We primarily work in manufacturing and distribution, and everything we cover today applies to both warehousing and manufacturing. Planning includes purchasing for warehouses or component parts for manufacturing facilities.

We offer a full suite of applications, many of which are free. These include tools for production scheduling, document management, shipping, and warehouse management. Most of our solutions are delivered through reseller partners, so they are your first point of contact for pricing or implementation support.

Enhanced Planning Pack Overview

The Enhanced Planning Pack is the focus of today’s session. It includes the Enhanced Planning Worksheet and Enhanced Forecasting Worksheet, both of which are free for SaaS users. These tools improve usability and efficiency compared to standard Business Central planning features.

The goal is to eliminate the need for external tools like Excel and allow you to manage purchasing and planning directly within Business Central.

Enhanced Forecasting Worksheet

Forecasting is the first step in planning. The Enhanced Forecasting Worksheet uses Microsoft’s Azure Machine Learning forecasting model and makes it more usable by allowing you to forecast multiple items at once.

You can filter by item, location, and other criteria, then define parameters such as forecast period and historical data range. The system calculates expected demand based on past sales history.

Forecast Output and Usage

Once calculated, the forecast shows expected demand for upcoming periods. You can then update the demand forecast in Business Central, which feeds directly into planning processes like MRP and MPS.

Alternatively, instead of updating demand forecasts, you can use the results to automatically update planning parameters such as minimum stock levels, reorder points, and maximum inventory.

Importance of Historical Data

Forecasting relies on historical sales data. If that data is missing, tools like the Import-Export Power Tool can be used to bring in historical transactions without affecting system integrity.

Managing Components with Item Planning Review

Forecasting is typically done at the finished goods level. For components, the Item Planning Review tool is used instead. It calculates average usage rather than forecasting and allows you to define formulas to determine reorder points and inventory levels.

This tool provides flexibility by allowing you to define which transactions count as usage and apply custom formulas to calculate planning parameters.

Enhanced Planning Worksheet

The Enhanced Planning Worksheet improves on the standard planning worksheet by simplifying purchasing and reducing noise. One key feature is the Calculate Purchase Plan function, which focuses on new demand and eliminates unnecessary action messages.

This makes it especially useful for distribution environments where speed and clarity are critical.

Performance and Efficiency

The purchase plan is significantly faster than standard MRP. For example, planning 50,000 SKUs can take less than two minutes. It can also run automatically in a job queue to continuously accumulate purchasing requirements.

Improved Visibility

The worksheet provides enhanced fact boxes showing supply, demand, and projected inventory. It also includes vendor planning summaries, allowing you to track purchasing totals and determine when to release purchase orders based on thresholds like prepaid freight.

Visual Verification

A built-in chart allows you to visually verify planning suggestions. This helps identify issues such as over-ordering and quickly adjust planning parameters without navigating through multiple screens.

Planning Parameters in Business Central

Effective planning depends on correctly configured planning parameters. These include reordering policies, safety stock, reorder points, and order quantities.

Reordering Policies

• Fixed Reorder: Orders a fixed quantity when inventory drops below a threshold.
• Maximum Quantity: Replenishes inventory up to a defined maximum level.
• Lot-for-Lot: Orders exactly what is needed based on demand.
• Order: Creates supply only when demand exists.

Each policy impacts inventory levels differently. For example, maximum quantity increases inventory levels, while lot-for-lot minimizes them.

Reducing Planning Noise

Parameters like rescheduling period, dampener period, and overflow level help reduce unnecessary planning messages. These settings control how sensitive the system is to changes in demand or supply.

Planning Flexibility

Planning flexibility can be set on purchase or production orders to prevent the system from suggesting changes. This is useful when orders are fixed and should not be modified by the planning engine.

Key Takeaways

The Enhanced Planning Pack significantly improves planning efficiency in Business Central. Forecasting helps determine demand, while the planning worksheet simplifies supply generation and reduces noise.

Proper configuration of planning parameters is critical to getting accurate and actionable results. Small enhancements like better visibility, faster processing, and easier parameter adjustments can save hours of work each week.

Closing Remarks

If you’re using the cloud version of Business Central, you can install the Enhanced Planning Pack and start using it right away. Explore the tools, test them in your environment, and reach out to your partner or Insight Works if you have questions.

Thanks everyone for joining. Hope you have a great rest of your week.