Let’s start with a quick recap of the framework that Microsoft uses to release new features in Dynamics 365 Supply Chain Management. Each year, there are two main release waves. Wave 1 includes versions that are generally available between April and September, while Wave 2 covers those released between October and March.
This structure aligns with Microsoft’s high-level planning cycle for introducing new functionality and enhancements. Within these two waves, a total of four versions are now released annually. Previously, there were seven versions, but Microsoft has streamlined this approach, reducing the number and introducing more flexibility in scheduling updates.
A significant improvement is the ability for Dynamics customers to select an auto-update window that suits their needs. Since the 10.9.39 release, organizations can choose between two auto-update windows for each service update, spaced four weeks apart. This allows businesses to align updates with their internal validation processes and operational schedules more effectively.
In addition, with the reduction in service updates, Microsoft has adjusted the rules around update pauses. Previously, organizations could pause up to three updates, but starting in early 2024, this limit has been reduced to one. These changes reflect Microsoft’s commitment to balancing customer flexibility with streamlined update processes.
Wave 2 Release Timeline
The first major release in this wave was version 10.0.41, which has been generally available since September 17th. Following that, version 10.0.42 was released on December 27th. In line with the reduced service updates, the next move into Wave 1 2025 is scheduled for March.
First, let’s review the new Copilot and AI features that are available in this release.
In the area of Demand Planning—specifically referring to the Demand Planning Power App-based application—there are two new features showcasing how Copilot can assist planners in their forecasting. These Copilot cursor prompts are already in public preview, so if you have the Demand Planning app installed, it’s highly recommended to explore these capabilities.
On the Copilot front, Microsoft continues to enhance the sidecar experience. This in-app help feature functions like a chat tool, providing users with direct support and guidance within the Dynamics 365 application.
In the procurement domain, Copilot introduces automated reminders for suppliers who haven’t responded to purchase inquiries. Additionally, it brings incoming change requests to the attention of purchasers, such as when a vendor cannot deliver on time or in full. Copilot then offers options to update the purchase order based on the change request, effectively handling these tasks on behalf of the user.
Copilot and AI Innovation
Copilot cursor prompts in the Demand Planning app help you explore specific data points or a data range in a forecast or a time series. They provide a set of predefined questions that you can ask Copilot, which then returns insights into notable shifts, whether that’s a positive or a negative shift, as well as any trends or anomalies.
These capabilities work across multiple dimensions. Copilot replies using natural language, summarizing the response and providing visuals, if available. This makes it easier to digest the information and use it to make informed decisions, such as updating your forecast.
Inventory and Logistics
Let’s move from Copilot and AI innovation to talk about fundamentals. And we are going to start with inventory and logistics.
In the costing area, we have a new ability for recalculating weighted average. You can now choose whether to include transactions that have not yet been financially updated. This feature adds an option for item model groups, includes transactions without financial closing, and only applies during recalculations. It does not affect inventory closing. This feature is now in public preview.
When we look at quality management, we now have the ability for Copilot to help trace and solve quality issues within the traceability add-in. This add-in tracks manufacturing activities against the serial and/or batch numbers of specific components and the related finished goods.
When quality issues occur, Copilot can quickly collect all the relevant details from both the traceability add-in and Supply Chain Management itself to summarize product status, track custody, and analyze deviations related to the impacted products.
Not only does this help companies solve quality issues quickly, but it also finds correlations between specific component batches and manufacturing delays, improving overall manufacturing performance efficiency.
This new release adds an activities page in Supply Chain Management that includes a Copilot-generated summary of recent activities and a full list of activity details.
Copilot provides an activity summary that highlights the related item status plus other useful information. From there, users can drill down into an activity and find related details. The summary for each activity provides instant access to key information such as location, time, items, workers, vendors, and more.
This feature is planned for public preview in March 2025, which is part of Wave 1 2025.
Traceability
The traceability add-in for Dynamics 365 Supply Chain Management enhances visibility into product genealogy across the supply chain. It tracks events and attributes, offering an interface for data query and analysis that’s crucial for meeting regulatory requirements and achieving sustainability goals.
Traceability is essential in industries like pharmaceuticals, high-tech manufacturing, and food and beverage process manufacturing and distribution due to the regulatory and legal requirements in those industries specifically.
The traceability add-in enables Dynamics 365 users to quickly access product trace information so that they can stay compliant and reduce time to recall processes. With its composable architecture, it can both natively access Dynamics 365 data and be integrated with any other source of traceability data.
In this new release, adding the Copilot summarization helps users identify where those quality issues may lie across the product genealogy and the related activities and events.
Planning and Procurement
Planning Features
In the planning space, we have a handful of new features.
The first one is the capable-to-promise (CTP) calculations in Dynamics 365 Supply Chain Management.
CTP calculations now consider both materials and resources when calculating delivery dates, making this information essential for assemble-to-order or make-to-order businesses. CTP calculations explode all the components, purchases, transfers, and capacities needed to manufacture any specific item and can be run on any selected sales order line. This feature is now in public preview.
Dynamics 365 SCM now provides greatly improved support for master planning collaboration because it continuously recalculates your master plans, refreshing them after each edit. Planners and other stakeholders will see the latest fully optimized planning results as they evaluate and update each plan. This feature is now also in public preview.
Finally, in the planning area, this release enhances the demand forecasting and planning app by adding the following capabilities:
- Filter the data you need from different legal entities
- View and select the best fit model for each planning unit based on accuracy and performance metrics
- Allocate demand across different dimensions such as products, customers, or channels based on the allocation basis you define
- Incorporate external signals such as inflation rates or weather conditions into your forecast calculation and understand how they impact your demand
- Export your data to other systems or platforms, such as Dynamics 365 and Azure Data Lake
- Customize and map your export fields as needed
- Aggregate your data by different time periods such as year, quarter, or week in the grid view
- Perform calculations in the grid view that update in real time
- Manage orchestration templates for running your forecast jobs
There are a lot of enhancements in the demand planning area.
Procurement Features
Let’s also look at the procurement area.
Here we have a new mobile app that allows users to approve purchase orders and purchase requisitions without having to log in to the Dynamics 365 client portal.
Let’s have a deeper dive into the app.
The mobile app starts by presenting an overview of the user’s assigned tasks and due dates. From there, the user can open the details for each purchase requisition and purchase order to be approved without switching context. On gaining a full understanding of the context and details of an approval request, the user can then choose between the approval options configured for the workflow by selecting the appropriate response. This could be approve, reject, delegate to another user, or request a change.
This feature is now generally available.