Dynamics 365 Supply Chain Management — 2026 Release Wave 1

Dynamics 365 Supply Chain Management as part of 2026 Release Wave 1 focuses on further increasing automation, leveraging AI, and improving process visibility across the supply chain. The key direction of change is to reduce manual operational activities and better link planning decisions with real-time business data.

According to Microsoft's release plan, new features include development of demand and supply planning, improvements in supplier collaboration, and significant investments in warehousing and logistics operations.

Key areas of development

Demand & Supply Planning

The system is being developed towards more advanced analytics and prediction. Among other things, price and demand correlation and mechanisms for securing availability deadlines (CTP — capable to promise) have been introduced, which translates into greater planning stability.

The result is a marked improvement in the accuracy of forecasts and a reduction in the risk of shortages and excesses.

Cooperation with suppliers (Supplier Collaboration)

The development of this area is focused on improving communication and increasing operational integration with suppliers. The system better supports the flow of information and synchronization of purchasing activities.

In practice, this means fewer operational errors and greater predictability of order fulfillment.

Warehouse and logistics operations (Warehouse & Fulfillment)

The largest investments are in warehouse operations. The system uses AI to support picking, automatically balances inventory and develops support for hands-free operations.

These changes directly translate into increased productivity and reduced manual labor, especially in high-volume environments.

Strategic direction

All the changes are part of a clear trend:

• the transition from a trading system to a decision-making system,
• the use of AI to optimize operations in real time,
• greater autonomy of warehouse and planning processes.

The system ceases to be exclusively a tool for recording events, and begins to actively support operational and strategic decisions.

What's new in March and April?

March 2026

March focuses on automation and operational efficiency.

Planning and forecasting

• generative insights that identify trends and seasonality,
• forecasts based on multiple sources (sales, prices, inflation, weather),
• use of XGBoost and additional models (Naive, Croston),
• dynamic grouping of data (rising/downtrend/stable),
• maintaining manual adjustments in rolling forecasts.

Warehouse and logistics

• automatic re-slotting of stock based on demand,
• optimization of picking paths and increasing throughput,
• support for wrist scanners (hands-free),
• reduction of operation time and picking errors.

Production

• automatic production reporting by sensors,
• full visibility of production progress in real time,
• elimination of manual reporting,
• handling complex units (e.g. multi-level packaging).

Quality and traceability

• Copilot analyzing quality problems,
• automatic collection of production and batch data,
• identification of causes and correlations,
• full product tracking (serial/batch) throughout the lifecycle.

Prezzo

• one base currency for global price lists,
• automatic currency conversion,
• price simulations at the level of order attributes,
• Improved import/export of pricing data.

April 2026

April develops control, integration and process management.

Planning

• time freeze — blocking periods before recalculation,
• automatic selection of forecast models (Prophet, XGBoost),
• best-fit model choosing the best forecast,
• automatic detection of seasonality.

Shopping

• integration with CLM (contract lifecycle management) systems,
• linking contracts to purchasing processes,
• better control of conditions and compliance.

Suppliers and Billing

• improved management of supplier discounts,
• greater flexibility in billing,
• consolidation of accounting records.

Warehouse (WMS)

• integration with work management systems (LMS),
• resource planning based on operational data,
• performance monitoring and task tracking,
• Predictive work planning.

Conclusions

Release Wave 1 2026 in SCM does not introduce individual features — it changes the way the system works:

• Planning becomes predictive.
• the warehouse becomes autonomous,
• production reports itself,
• Pricing is centrally managed
• decisions are supported by AI.

This is the transition from ERP as a record-keeping system to an operating system that actively controls the supply chain.

Full list of changes

The full range of functionality along with the schedule is available in the official Microsoft release plan:
https://releaseplans.microsoft.com/en-us/?app=Supply+Chain+Management

Benefit from expert support

If an organization uses Dynamics 365 and needs to prepare for upcoming changes, analyze the impact of new features or plan a secure deployment, the support of the retcon.pl team allows you to reduce operational risks and accelerate the adoption of new system capabilities.

https://www.retcon.pl/contact

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