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Writer's pictureJohn Ellis

Safety Lead Time: The Unknown Field in Business Central

In handling supply chain management, Microsoft Dynamics 365 Business Central is extremely powerful.  To see this, look no further than Inventory’s Item Card.

 

The Item Card’s “Planning” tab offers Reordering Policies and parameters for Reorder Points and Order Modifiers.  Such fields empower businesses with enough supply to meet customer demand.

 

Using the “Safety Stock Quantity” field is for good measure, especially during times of supply and demand fluctuation.

 

One important field that many end users don’t know about, however, is Safety Lead Time.


Safety Lead Time's Purpose


Safety Lead Time verifies that supply will be available, prior to when it’s required.  For example, let’s say that you set Safety Lead Time to one month by typing “1M” in the field.  Accordingly, supply will be available for the customer one month before it’s due.


Safety Lead Time

Setting such lead times are important for very critical goods or for when a company is doing business with a new vendor.

 

Also, unlike the “Safety Stock Quantity” field, Safety Lead Time may be used with any of Inventory’s Reorder Policies.  In this article, we’ll focus on the “Order” Reordering Policy.


Controlling Replenishment Dates


We have 0 quantity in stock for item 1900-S, yet one of our best customer’s wants 100 of this item by 10/15/2024.  This is the Sales Order transmitted to our company:


Sales Order

Even though there are different ways of meeting this demand, we’ll use Business Central’s Requisition Worksheet to generate the necessary Purchase Order:


Business Central Requisition Worksheet

On the Purchase Order’s “Lines” tab, the Requested Receipt Date specifies the date that you want the vendor to deliver the product to the ship-to address. 


Since the Sales Order’s Order Date is 10/15/2024 and since the Item Card’s Safety Lead Time is one month, the Requested Receipt Date on the Purchase Order’s line item is 09/15/2024.


Work Date Setting

Microsoft Dynamics 365 Business Central’s Inventory Item Card is a robust tool for managing supply chain operations effectively. By leveraging features like Reordering Policies, Safety Stock Quantity, and Safety Lead Time, businesses can ensure timely replenishment and meet customer demands efficiently. The ability to control replenishment dates precisely, as demonstrated with the Requisition Worksheet and Purchase Order example, highlights the system’s capability to handle complex supply chain scenarios seamlessly. Embracing these functionalities can significantly enhance operational efficiency and customer satisfaction.



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