Giving suppliers better digital experiences shouldn’t require IT teams to create another disconnected system to manage. As organizations introduce AI and agents into business processes, that becomes even more important. Agents need access to business data and context, while organizations need to maintain the security, permissions, policies, and controls that govern how work gets done.

Supplier processes illustrate this challenge. Supplier information and interactions can span registration and qualification, sourcing, purchasing, invoicing, and ongoing supplier management. When those interactions take place across separate portals, email, and disconnected tools, organizations can end up with fragmented supplier information and additional integration and governance requirements.

Supplier Engagement in Microsoft Dynamics 365 Supply Chain Management is available in public preview and is designed for composability, helping organizations bring supplier interactions into a more connected environment.

Built using Microsoft Power Platform and as part of Dynamics 365 Supply Chain Management, Supplier Engagement extends how suppliers and procurement teams interact with strategic and operational source-to-pay processes while keeping those interactions connected to operational data and processes in Dynamics 365.

This approach gives organizations the flexibility to adapt supplier experiences to their business requirements while maintaining the connection to the enterprise resource planning (ERP) processes, data, and controls that support procurement operations.

For CIOs and IT teams, as well as sourcing and procurement teams, this provides a composable approach to supplier engagement today and can help establish the connected data, business context, and governance foundation needed as AI and agents become increasingly integrated into business processes.

Connect supplier experiences to the processes that run your business

Suppliers need accessible ways to register, maintain information, respond to requests for quotation (RFQs), confirm purchase orders, submit invoices, and collaborate with procurement teams. Traditionally, supporting these supplier experiences can mean adding supplier-facing systems and then integrating them with ERP systems.

Supplier Engagement takes a more connected approach. Microsoft Power Platform capabilities, including Dataverse, model-driven Power Apps, and Power Pages, support experiences tailored to suppliers and procurement teams. Suppliers can interact through a supplier portal, while procurement teams can manage supplier information and lifecycle activities through Supplier Engagement. Dynamics 365 Supply Chain Management remains the foundation for operational procurement processes and legal-entity transactions.

For IT teams, this architecture provides flexibility in how supplier experiences are delivered and extended while maintaining connections to the ERP processes and data that support procurement operations.

High-level logical architecture

Figure 1: Supplier Engagement architecture showing supplier and procurement experiences connected through Microsoft Power Platform to Dynamics 365 Supply Chain Management

Create a more consistent view of suppliers across the organization

A connected supplier experience depends on connected supplier information. This can be particularly challenging for organizations operating across multiple legal entities, where the same supplier may do business with different entities and business units of the organization.

Maintaining supplier information separately for each legal entity can contribute to duplicate information, inconsistent records, and additional administrative work. It can also make it more difficult to establish the consistent business context needed for analytics, AI, and agents.

Global vendor management in Supplier Engagement provides a shared supplier profile where information such as contacts, addresses, certifications, capabilities, and organizational details can be maintained centrally. Following the appropriate qualification and approval processes, relevant supplier information can then be released into one or more legal entities in Dynamics 365 Supply Chain Management for operational transactions.

This approach can help organizations establish a more consistent supplier identity across the business while continuing to support the legal-entity structures required for procurement operations.

The following illustration shows the data flow between the Supplier Engagement app and Dynamics 365 Supply Chain Management for global vendor records. When you create, update, or delete a global vendor record in the Supplier Engagement application, plugins trigger on the msdyn_globalvendor Dataverse table and synchronize the changes to the mserp_vrmglobalvendorentity entity in Dynamics 365 Supply Chain Management.

When you update the entity in Dynamics 365 Supply Chain Management, an OnExternalUpdate plugin triggers and synchronizes the changes back to Dataverse.

Adapt supplier experiences with Microsoft Power Platform

Supplier requirements rarely remain static. Organizations may need to change onboarding processes, capture additional information, adapt experiences for different supplier groups, or extend processes as business requirements evolve.

Supplier Engagement uses Microsoft Power Platform to provide an extensible foundation for these experiences. Dataverse supports the engagement data model, while Power Apps and Power Pages provide experiences for procurement teams and external suppliers. Organizations can build on these capabilities to adapt Supplier Engagement to their requirements while maintaining connections to Dynamics 365 Supply Chain Management.

For organizations already using Microsoft Power Platform, this also means Supplier Engagement can become part of a broader approach to application development, extensibility, and governance rather than introducing another technology environment for IT teams to manage.

This composable approach can give organizations greater flexibility to evolve supplier experiences as requirements change while keeping those experiences connected to the ERP processes they support.

Maintain control over data and process boundaries

Composability becomes more valuable when IT teams can maintain clear boundaries around data ownership and operational processes.

Supplier Engagement uses event-driven synchronization and configurable mappings to connect supplier information in Dataverse with Dynamics 365 Supply Chain Management. Virtual entities can make Dynamics 365 Supply Chain Management data available through Dataverse without requiring the underlying operational records to be copied into Dataverse, while APIs and OData actions connect supplier interactions with relevant Dynamics 365 Supply Chain Management processes.

Administrators can configure mappings for the data that needs to move between Supplier Engagement and Dynamics 365 Supply Chain Management. Dynamics 365 Supplier Engagement uses synchronization capabilities designed for its supplier data and process model, which are distinct from standard dual-write. Organizations should not configure both mechanisms for the same Supplier Engagement entities because doing so can result in duplicate records and make data ownership more difficult to manage.

These capabilities give IT teams tools to define data ownership and synchronization boundaries based on their architecture and business requirements while keeping operational procurement processes anchored in Dynamics 365 Supply Chain Management.

Build the business context agents need

As organizations introduce agents into business processes, the quality of the underlying business context becomes increasingly important. Agents need more than access to data. They need to understand the context surrounding that data, including the supplier relationship, where work is within a process, and the permissions, policies, approvals, and business rules that apply.

Disconnected supplier information makes that context more difficult to establish. Bringing supplier information and interactions into a connected environment with Dynamics 365 Supply Chain Management can help establish a stronger data and process foundation for AI and agents.

Supplier Engagement helps connect supplier information and experiences with the operational procurement processes in Dynamics 365. As organizations evaluate agentic scenarios across procurement and supplier management, this foundation can provide agents with access to relevant supplier and process context while helping organizations maintain the permissions and controls established for their ERP environment.

This becomes increasingly important as AI evolves from helping people find and summarize information toward agents that can participate in business processes. The opportunity is not simply to give agents access to more data. It is to provide the business context they need to support work within the processes and controls an organization has established.

Prepare supplier processes for what comes next

The question is no longer simply how to provide another digital experience for suppliers. It is how to extend supplier processes without creating additional fragmentation while preparing the organization’s data and architecture for a future in which people and agents increasingly work across business processes.

Supplier Engagement brings together the operational foundation of Dynamics 365 Supply Chain Management with the extensibility of Microsoft Power Platform. Organizations can adapt supplier experiences to meet business requirements, connect supplier information across procurement processes, and maintain control over how those experiences interact with ERP data and processes.

As organizations adopt more AI and agentic capabilities, this connected foundation becomes increasingly important. Bringing together supplier information, business context, extensibility, and governance can help organizations prepare supplier processes for an agentic future while continuing to support the procurement requirements they have today.

Explore Supplier Engagement to learn how the public preview can help connect supplier experiences, data, and procurement processes.

The post Build a connected foundation for Supplier Engagement and agentic AI with Microsoft Dynamics 365 Supply Chain Management appeared first on Microsoft Dynamics 365 Blog.

Private Preview: Dynamics 365 version 10.0.48 

Public Preview: Dynamics 365 version 10.0.49 

Disclaimer: The capabilities described here are in preview. Preview features are provided for evaluation only, are subject to change, and may not be released in their current form. Availability, timing, and functionality of any feature described here, including roadmap items and capabilities not yet generally available, are not guaranteed and should not be relied upon when making purchasing decisions. 

Inventory is often available, just not in the company where demand shows up. A customer may place an order in one legal entity while the best available stock sits in another. When that happens, teams often fall back on manual intercompany coordination, which slows fulfillment and adds operational cost. 

Cross-Legal-Entity Fulfillment Optimization in Dynamics 365 helps remove that barrier. By combining Distributed Order Management (DOM) with automated intercompany orchestration, the system can evaluate inventory across participating legal entities, help identify a suitable fulfillment location, and create the required transactions automatically. 

In practice, fulfillment decisions can be based on the right business signals, such as inventory availability, distance, cost, and sourcing rules, instead of being limited by company boundaries. 

For example, a retailer with separate legal entities in Germany, France, and Spain may receive an order in Germany when the local entity is out of stock. With this capability, DOM can identify available inventory in France, create the required intercompany flow, and route fulfillment to a suitable location. The customer gets a smooth order experience, while the retailer makes better use of inventory across the enterprise.

What we’re releasing 

Cross-Legal-Entity Fulfillment Optimization introduces five core capabilities: 

• Cross-LE fulfillment groups: Define fulfillment groups that include warehouses and stores across multiple legal entities, so DOM can evaluate a broader enterprise network instead of a single company. 
• Cross-LE inventory visibility for optimization: Allow DOM to evaluate inventory availability from participating legal entities and source from a larger inventory pool. 
• Enhanced fulfillment profiles and rules: Support multi-entity fulfillment strategies while preserving entity-specific configuration, such as delivery modes and sales order origins. You can define fulfillment logic once and apply it consistently across entities. 
• Automated intercompany transaction orchestration: When inventory is sourced from another entity, the system creates the required intercompany transaction chain automatically. 
• Cross-entity fulfillment execution: Orders sourced from another legal entity can be fulfilled through familiar execution experiences while remaining synchronized across participating entities. 

How it works 

Cross-Legal-Entity Fulfillment Optimization is a headless capability provided by Dynamics 365 Commerce and available in Dynamics 365 Finance and Operations (HQ). As long as orders are created in, or synchronized to, Finance and Operations, DOM can evaluate fulfillment options across participating legal entities and orchestrate the required fulfillment process. 

The initial release supports retail orders. Support for broader Supply Chain Management sales order scenarios is planned on the roadmap. Roadmap items are subject to change and are not a commitment to deliver. 

When DOM determines that inventory should be sourced from another legal entity, it orchestrates the intercompany transaction flow: the Original Sales Order (OSO), the Intercompany Purchase Order (IC PO), and the Intercompany Sales Order (IC SO). These documents remain synchronized throughout the fulfillment lifecycle. 

Fulfillment teams continue to use standard processes such as picking, packing, shipping, invoicing, and rejection handling. Status updates flow through the chain so each participating entity stays aligned. If a location rejects an order or inventory constraints change, fulfillment can be reassessed and optimized again using current conditions. 

The goal is a flow that feels seamless for operations while still preserving the controls, accounting, and intercompany structures that enterprises require. 

Business benefits 

• Increase inventory utilization: Make inventory usable across entities and reduce situations where stock exists but cannot satisfy demand. 
• Optimize fulfillment decisions: Let the engine choose the optimal location based on availability, distance, rules, and constraints, across participating legal entities. 
• Reduce manual effort: Automate intercompany transaction creation and ongoing synchronization. 
• Improve the customer experience: Increase fulfillment flexibility and help satisfy demand faster and more consistently. 
• Create a connected enterprise network: Move from isolated legal entity processes toward a more unified fulfillment strategy. 

From visibility to fulfillment: an end-to-end cross-legal-entity solution 

Cross-Legal-Entity Fulfillment Optimization follows Cross-Legal-Entity Inventory Lookup, released in 10.0.47. That earlier capability gave store associates the ability to see inventory across legal entities. Together, the two capabilities create a more complete cross-legal-entity flow, from visibility through fulfillment. 

The progression is simple: see inventory across legal entities, optimize fulfillment across legal entities, and execute fulfillment across legal entities. 

This helps organizations move beyond simply viewing inventory in another entity. They can act on it through intelligent optimization and automated execution, which is an important step toward a more connected fulfillment model across participating legal entities. 

Getting started 

Configuration builds on existing Distributed Order Management capabilities: 

• Enable Distributed Order Management and Azure Maps. 
• Establish intercompany trading relationships between participating legal entities. 
• Configure DOM Intercompany Vendor Mapping. 
• Define fulfillment groups that span participating legal entities. 
• Configure fulfillment profiles and rules. 
• Schedule the DOM processing jobs. 

Full configuration steps, fulfillment scenarios, and troubleshooting guidance are available in the product documentation. 

Availability 

Customers in the 10.0.48 private preview can contact the product team for enablement by creating an ICM with their environment details. Beginning with the 10.0.49 public preview, customers can self-enable the feature through Feature Management. 

Looking ahead 

Cross-Legal-Entity Fulfillment Optimization is more than a new feature. It is an early step toward more connected fulfillment across participating legal entities. 

Today, the capability supports Commerce sales orders across channels, including POS, e-commerce, call center, and headless orders through Commerce Scale Unit (CSU). We have also heard a clear ask from customers: make this compatible with Supply Chain Management (SCM) sales orders as well, so the same cross-legal-entity fulfillment approach can work for all sales order types. 

Cross-legal-entity inventory visibility for customer-facing e-commerce experiences is another area we are evaluating. Roadmap plans are subject to change and are not a commitment to deliver.

We are already looking into that direction. If SCM sales order support is important for your business, please reach out. We would like to understand your requirements. 

How to enable and share feedback 

• Have feedback?: Leave a comment or reach out to me directly. 
• Want to try it on 10.0.48 private preview? Raise an incident to request flight enablement and include your environment details. In 10.0.49 public preview, you can self-enable through Feature Management, so no incident is needed. 

Also recent release: DOM support for advanced warehouse items (10.0.46) 

DOM now supports advanced warehouse-enabled items, allowing them to participate in sourcing and fulfillment optimization scenarios where they were previously excluded. This expands the inventory DOM can evaluate and helps organizations apply fulfillment optimization more consistently across products managed with advanced warehouse processes. 

DOM is also compatible with advanced warehouse scenarios where inventory availability is correctly calculated with inventory statuses enabled, and where warehouse work, loads, and shipments align with the fulfillment strategy. 

One inventory network. Multiple legal entities. One intelligent fulfillment decision. That is the future we are building toward. 

The post Breaking the Company Boundary: Cross-Legal-Entity Fulfillment and Advanced Warehouse Support in DOM appeared first on Microsoft Dynamics 365 Blog.

Sourcing and procurement processes are being reimagined to strengthen supplier collaboration, improve operational efficiency, and drive greater control across source-to-pay processes.

Sourcing and procurement teams are being asked to onboard suppliers faster, collaborate across global operations, respond to supply disruptions, and meet growing compliance requirements—all while maintaining trusted supplier data across the business.

Managing these activities through disconnected systems, email, and manual processes can make it difficult to maintain supplier information and efficiently collaborate throughout the supplier lifecycle.

 The public preview of Supplier Engagement for Microsoft Dynamics 365 Supply Chain Management is a centralized workspace that enables organizations to onboard suppliers, manage supplier information across legal entities, and collaborate across sourcing and procurement activities.  Dynamics 365 Supply Chain Management, Supplier Engagement helps organizations streamline supplier collaboration while maintaining a trusted, consistent source of supplier information across procurement, finance, and supply chain operations.

Build a stronger foundation for modern sourcing and procurement

Modern sourcing and procurement require more than efficient transactions. Organizations need trusted supplier information, connected business processes, and more secure collaboration across teams.

Supplier Engagement brings supplier onboarding, supplier information management, supplier collaboration, and operational processes together in a cohesive experience connected to Dynamics 365 Supply Chain Management. By unifying supplier engagement across Microsoft Power Platform and Dynamics 365 Supply Chain Management, organizations can improve operational efficiency, strengthen supplier collaboration, and establish a stronger foundation for future innovation.

Simplify supplier onboarding and lifecycle management

Supplier Engagement extends Dynamics 365 Supply Chain Management with capabilities that support the complete supplier lifecycle—from supplier registration and onboarding through qualification, approval, and ongoing supplier management.

Procurement professionals like buyers or supplier relationship managers can register prospective suppliers, guide them through structured onboarding, evaluate qualifications, manage approvals, maintain supplier certifications and capabilities, capture supplier feedback, and manage supplier relationships from a centralized workspace.

The solution supports both supplier self-registration and buyer-initiated onboarding.

Manage global suppliers with greater consistency

Many organizations work with the same suppliers across multiple legal entities. Maintaining separate supplier records for each legal entity can result in duplicate information, inconsistent records, and unnecessary administrative effort.

Supplier Engagement introduces Global Vendor management, enabling organizations to maintain a shared supplier record across multiple legal entities. Supplier information, including contacts, addresses, certifications, and organizational details, is maintained centrally and shared where appropriate. Once qualified, suppliers can be released into one or more legal entities within Dynamics 365 Supply Chain Management for operational transactions while maintaining a single global supplier profile.

This approach provides sourcing and procurement teams with greater visibility across supplier relationships while helping establish a trusted, consistent source of supplier information across the organization.

During private preview, customers cited the unified supplier data management experience as a key advantage, sharing that it could help address the data mismatches and duplicate supplier information their buyers experience today.

Keep supplier collaboration connected to your business processes

Suppliers now can use a dedicated self-service portal to maintain their information and participate directly in sourcing and procurement processes, helping reduce manual effort while improving data quality.

Through the supplier engagement portal, Supplier professionals like sales managers, selling executives can:

• Register and onboard their organizations
• Respond to requests for quotation (RFQs)
• Review and confirm purchase orders
• Propose changes to quantities or delivery dates
• Submit invoices
• Create Category requests
• Monitor consignment inventory
• Maintain contact information, certifications, and organizational details

Adapt supplier engagement to your business

Supplier Engagement is built on Microsoft Power Platform using Microsoft Dataverse, model-driven Power Apps, and Power Pages.

This architecture gives organizations the flexibility to tailor Supplier Engagement to their business requirements. Organizations can customize onboarding experiences, extend questionnaires, configure workflows, automate notifications, and adapt supplier processes while remaining connected to Dynamics 365 Supply Chain Management.

By combining the extensibility of Microsoft Power Platform with the operational capabilities of Dynamics 365 Supply Chain Management, organizations can evolve supplier engagement processes without modifying core ERP functionality

Supplier engagement is also available for Agents

Global supplier management gives agents something most AI initiatives lack: a trusted, non-duplicated source of supplier truth to reason over. Agent access respects the same security roles, approval workflows, and data boundaries as human users, while operational transactions remain anchored in Dynamics 365 Supply Chain Management.

This means instead of building custom integrations for every scenario, organizations use one standard interface and agents built in Microsoft Copilot Studio, or any MCP-compatible host, can reason over supplier data and act within the permissions and business rules already defined in Dynamics 365 Supply Chain Management and Dataverse.

Practically, that opens scenarios such as:

• Reviewing inbound supplier registrations requests.
• Flagging incomplete or potentially duplicate onboarding submissions before buyer review.

• Monitoring global certifications and prompting suppliers ahead of expiration.
• Performing Risk assessments and recommend corrective actions.
• Summarizing a RFQ response set so a buyer compares terms instead of assembling them.

Learn more

Supplier Engagement is now available in public preview for Microsoft Dynamics 365 Supply Chain Management.

To learn more about capabilities, deployment prerequisites, and configuration guidance, visit Microsoft Learn.

Supplier Engagement overview (preview) – Supply Chain Management | Dynamics 365 | Microsoft Learn

Install the Supplier Engagement app and supplier portal on Power Platform (preview) – Supply Chain Management | Dynamics 365 | Microsoft Learn

The post Supplier Engagement in Dynamics 365 Supply Chain Management is now available in public preview appeared first on Microsoft Dynamics 365 Blog.

Continued supply chain disruptions, geopolitical uncertainty, and rising cost pressures are putting procurement organizations under increasing pressure to move faster and make better decisions. Every supplier delay, sourcing event, contract negotiation, invoice exception, or payment inquiry has the potential to impact costs, inventory availability, customer commitments, and ultimately business performance.

Enterprise resource planning (ERP) systems have long served as the operational foundation for managing suppliers, contracts, purchasing, invoicing, and spend. That foundation remains critical. But as business complexity increases, legacy ERP systems and traditional automation are beginning to show their limits. Procurement leaders are being asked to reduce costs, navigate ongoing supply chain disruption, and gain greater visibility into spend and risk. The challenge is no longer simply capturing transactions and tracking compliance—it is identifying what requires attention, evaluating options, and responding quickly enough to stay ahead of disruption.

This is where AI agents can introduce a new opportunity. Rather than focusing solely on automating tasks, agents can monitor business conditions, surface insights, coordinate workflows, and take action across source-to-pay business processes, while keeping people in the loop. When built on the agent-ready ERP foundation of Microsoft Dynamics 365, they have the potential to transform how procurement teams get work done.

How agentic ERP can transform source-to-pay

Agentic ERP can represent the next evolution. Rather than simply recording transactions and executing predefined workflows, as part of agentic ERP, AI agents can monitor business conditions, understand context, reason over data, coordinate actions, and help teams make more informed decisions.

As an example, a supplier communication can trigger an impact analysis. A sourcing event can trigger supplier evaluation and recommendations. A payment inquiry can trigger an invoice automation and communications. Or a supplier risk signal can trigger proactive intervention before operations are affected. These types of actions can help teams move from reacting after the impact is felt toward more proactively managing outcomes.

What makes this possible is the combination of Dynamics 365, Microsoft 365 Copilot Cowork, Microsoft Copilot Studio, Microsoft Fabric, and the entire Microsoft Cloud. Together, they provide a common foundation for building, deploying, and governing agents across the enterprise using Microsoft Agent 365 and ERP governance processes. Organizations can leverage Microsoft-built agents, specialized partner-built agents, and custom agents while maintaining a more consistent approach to identity, security, privacy, compliance, and governance.

The Dynamics 365 ERP Model Context Protocol (MCP) servers extend this foundation by providing a standardized way for AI and agents to securely access ERP and business performance analytics data. This enables agents to operate within the context of existing procurement, supply chain, and financial and business performance workflows rather than as disconnected AI tools. Organizations can start with Microsoft agents, extend capabilities through partner innovation, and build custom agents for unique business requirements—all while leveraging the same governance provided in the Microsoft Cloud.

The result is more than process automation. It can result in a more connected, intelligent, and adaptive approach to source-to-pay that can help organizations improve agility, strengthen supplier relationships, reduce risk, and respond faster to change.

Reimagining source-to-pay using Microsoft 365 Copilot Cowork

Microsoft 365 Copilot Cowork introduces a new way to engage with source-to-pay processes run in Dynamics 365. Using the Dynamics 365 ERP apps plugin for Copilot Cowork, users can interact within the flow of work using natural language prompts. 

For example, a procurement manager can evaluate supplier bids by combining ERP data accessed through the Dynamics 365 ERP MCP Server with supplier emails and supporting documents, compare vendors, identify tradeoffs, and execute the supplier bid evaluation and award process without switching between systems. By bringing ERP data, business processes, and operational context into Copilot Cowork, organizations can move more quickly from insight to action while remaining grounded in the systems, controls, and governance provided by Dynamics 365 ERP.  

Imagine a future where employees no longer need to be ERP experts to participate in business processes. Instead, they can engage through intent in Copilot Cowork while AI helps navigate the underlying complexity of ERP data, business processes, policies, and workflows. This is an important step toward a future where ERP increasingly adapts to people, rather than requiring people to adapt to ERP. 

Streamline operations further with the Procurement Agent in Dynamics 365

Procurement teams spend a significant amount of time managing supplier communications. Buyers routinely review purchase order confirmations, delivery updates, quantity changes, and supplier responses while evaluating the potential impact on inventory, production schedules, customer commitments, and financial performance.

Now in public preview, Procurement Agent in Dynamics 365 Supply Chain Management helps orchestrate this process by monitoring supplier communications, detecting changes, and providing impact analysis across inventory, production schedules, and customer orders. Rather than manually reviewing every supplier interaction, procurement teams can focus on the exceptions that matter most and make faster, more informed decisions.

This shift delivers value beyond procurement efficiency. Procurement leaders gain greater visibility into supplier activity, while operations leaders benefit from faster responses to issues that could impact production, fulfillment, or customer commitments.

Farmlands Cooperative brings agentic procurement to life 

This is already transforming how companies work. Farmlands Cooperative, New Zealand’s largest farmer-owned rural supplier, consolidated seven ERP systems onto Dynamics 365. As it shifted to centralized purchasing, it deployed Procurement Agent in Dynamics 365 Supply Chain Management to manage vendor communications at scale. The agent reads incoming supplier emails, summarizes requested changes for staff to approve, and drafts follow-ups on delayed orders to stay ahead of stockouts. Today it automates half of Farmlands’ purchase order email traffic and is expected to save the team about 20 hours a week.

By standardizing on Microsoft Dynamics 365 and thoughtfully applying agentic AI with humans firmly in the loop, we are creating a more efficient, resilient, and scalable operating model.

—Andre Scheepers, Chief Digital Officer, Farmlands Cooperative

Connect procurement decisions to business outcomes with Finance Agent and Business Performance Analytics

Every sourcing decision has downstream implications for costs, margins, cash flow, and business performance. Finance Agent in Microsoft 365 Copilot helps leaders explore business performance data using natural language, making it easier to understand the impact of supplier and purchasing decisions. 

Building on the reporting, analytics, and insights available through Business Performance Analytics in Dynamics 365, Finance Agent can help leaders investigate performance trends, answer business questions, and better understand the operational and financial outcomes of source-to-pay decisions. 

Explore partner agents to support the source-to-pay process

While Microsoft agents help address common procurement scenarios, many organizations require additional capabilities tailored to specific organizational processes. This is where the Microsoft partner ecosystem can extend the capabilities of agentic ERP by using the Dynamics 365 agent-ready foundation—including our MCP servers.

Vendor Onboarding Agent from Sonata

Supplier onboarding is often the first bottleneck in the source-to-pay lifecycle. Sonata’s Vendor Onboarding Agent can help organizations accelerate vendor activation by automating supplier data collection, validation, and workflow orchestration across procurement and accounts payable. By focusing on reducing onboarding cycle times and improving compliance, organizations can work to bring suppliers online faster, accelerate sourcing activities, and improve business responsiveness.

Smart Sourcing Agent from MCA Connect

When supply conditions change, procurement teams must quickly identify alternative suppliers and evaluate sourcing options. MCA Connect’s Smart Sourcing Agent can automate request for quote (RFQ) creation and supplier scoring within Dynamics 365 Supply Chain Management, helping organizations evaluate suppliers across cost, lead times, quality, and risk. This can enable faster sourcing decisions, improved supplier selection, and greater resilience when responding to disruptions.

KPMG Supplier Insight Agent

Supplier performance has become a strategic concern for procurement, supply chain, and finance leaders alike. The KPMG Supplier Insight Agent combines Dynamics 365 ERP apps data with external business signals to help organizations proactively monitor supplier performance and identify emerging risks. By surfacing insights and recommended actions, the solution can help organizations strengthen supplier resilience, improve continuity, and maximize value across their supplier ecosystem.

Together, these partner-built agents demonstrate how organizations can apply AI across the source-to-pay lifecycle—from supplier onboarding and sourcing to supplier performance management. More importantly, they show how agentic ERP can help procurement and operations leaders be more resilient, accelerate decision-making, and create more adaptable supplier ecosystems.

Extend source-to-pay with custom agents

No two organizations operate exactly alike. Industry regulations, supplier ecosystems, sourcing strategies, approval structures, and operational priorities often create requirements that extend beyond prebuilt capabilities.

Using Copilot Studio, leaders can build custom agents for those requirements, on the same security, governance, and business data that power Microsoft and partner agents. Procurement leaders can address specialized sourcing needs, supply chain leaders can automate disruption monitoring, and finance teams can streamline exception management and payment processes. Because every agent runs on a common foundation, organizations can work on business process innovation without creating new complexity or disconnected workflows.

Get started with agents for source-to-pay processes

The future of source-to-pay is not simply about processing transactions more efficiently. It’s about helping leaders make better decisions, respond faster to disruption, strengthen supplier relationships, reduce risk, and improve resilience across the business. This is a fundamentally different way to work, one where agents can reason alongside your team, act on their behalf, and give time back for the work that truly moves the business forward.

Are you ready to reinvent source-to-pay?

Reimagine your procurement strategy

See how agentic ERP in Dynamics 365 can transform your source-to-pay operations

Get started today

The post Reinventing source-to-pay with agentic ERP appeared first on Microsoft Dynamics 365 Blog.

Supply chain disruption is no longer the exception. It is the daily reality every business operates, driven by geopolitical instability, supplier failures, regulatory changes, and freight volatility. The challenge is not identifying disruption; it is synthesizing it fast enough to act. Businesses are flooded with signals across suppliers, logistics, operations, and compliance, but those signals remain fragmented across systems and teams, forcing reactive trade-offs instead of strategic action.

The leaders in this next era will be defined not by visibility alone, but by their ability to turn disruption into coordinated, cross-functional action before the cost of delay becomes too high. That’s where agentic AI comes in. 

Agentic AI redefines the supply chain workflow 

As supply chains become more dynamic, the way work gets done and operations are run is changing, and agentic AI is at the forefront. Agentic AI enables people and systems to work together more effectively, and Gartner predicts 60% of supply chain disruptions will be resolved without human intervention by 2031 (Gartner, March 18, 2026). Agents have the ability to reason over data, take action across workflows, reduce manual effort, and support faster, more consistent execution—while keeping humans in control of decisions and outcomes.  

Frontier firms are moving beyond isolated AI use cases and focusing on how decisions and actions connect and orchestrate across end-to-end processes. This shift it happening in three practical ways: 

• More proactive risk management: With access to real-time signals, teams can identify potential disruptions earlier and take action before they impact orders, production, or customer commitments.  

• Faster, more coordinated execution and orchestration: Insights are surfaced directly within the flow of work, so planners and operators can act immediately.  

• Coordinated human and agent workflows: Agents can take on high-volume tasks across the supply chain—from monitoring conditions to initiating actions—while people stay focused on oversight, exception handling, and strategic decisions. 

The result is a more responsive operating model. Let’s see how this approach comes to life in Dynamics 365 Supply Chain Management, and how organizations are using it to improve resilience, responsiveness, and end-to-end performance. Watch this video for a preview on how agentic AI with Dynamics 365 can transform your supply chain operations to a frontier firm.

Building an agentic supply chain 

Enabling this model requires connecting data, decisions, and actions across the supply chain. Dynamics 365 and Microsoft 365 Copilot support this by enabling agents to work across data and business processes in a governed way—linking signals, decisions, and execution within the flow of work. 

Several capabilities make this possible: 

• Connecting agents to data and execution systems: The Dynamics 365 enterprise resource planning (ERP) model context protocol (MCP) Server provides agents with secure, governed access to business processes and data. Using Dynamics 365 ERP MCP Server, agents can take action across the system—such as updating orders, adjusting supply plans, or initiating transfers—based on current conditions. See how Coca-Cola Beverages Africa uses Dynamics 365 and the Dynamics 365 ERP MCP server to autonomously run planning cycles, making the lives and the work easier for their end users.

• Grounding agent actions in business context: Work IQ gives agents real-time understanding of how work happens across the organization by connecting the productivity tools where decisions are made, including Outlook, Teams, and Word, to live operational data in Dynamics 365. Agents see the full context of a disruption, including its impact on orders, inventory, and customer commitments, and act on it directly in the system of record. 

• Agents operating within business policies and constraints: Agents act within defined rules—such as service levels, customer prioritization, and cost thresholds—so decisions remain aligned to business objectives and governance requirements. Additionally, Microsoft Agent 365 gives IT teams one place to observe, govern, and secure agents in your organization.  

“Our partnership with Microsoft has been instrumental in enabling Farmlands’ digital transformation. By standardizing on Microsoft Dynamics 365 and thoughtfully applying agentic AI with humans firmly in the loop, we are creating a more efficient, resilient, and scalable operating model.” 

Andre Scheepers, Chief Digital Officer, Farmlands Cooperative 

Dynamics 365 Supply Chain Management

Learn how more customers are streamlining operations

See customer stories

Driving impact with agents from planning to delivery 

The impact of an agentic approach is best understood through how work changes across core supply chain processes.  

Forecast to plan: Continuous alignment of demand and supply 

Demand planning is no longer limited to periodic forecast updates. With Demand planning in Dynamics 365 Supply Chain Management, planners can incorporate external signals—such as changes in demand patterns, promotions, or market conditions—alongside operational data to continuously adjust forecasts and supply plans. Copilot in Demand planning, helps planners understand why the numbers are moving, not just what they are. With Copilot cursor and generative insights, every forecast becomes traceable and explainable, so planners spend less time consolidating data and more time evaluating scenarios and making decisions that keep demand and supply in lockstep.

Source to pay: From supplier signal to business action

Supplier updates often require immediate analysis—what orders are affected, what production is at risk, and what actions need to be taken. When a supplier flags a component delay, the Procurement Agent in Dynamics 365 Supply Chain Management triages the supplier communication, matches it to the affected purchase order, and summarizes the downstream impact across inventory, sales orders, and production schedules. If inventory is available elsewhere in the network, the agent highlights the option. The procurement lead reviews the recommended response and moves forward spending time on decisions and mitigation, not tracing impacts across systems. 

Plan to produce and Inventory to deliver: Adjusting production execution, order fulfillment, and warehouse operations in real time 

Changes in material availability, labor capacity, or priorities require constant updates to production schedules and warehouse activities. Agents can help apply these changes directly within operational workflows—supporting updates to schedules, work orders, and task prioritization—so teams can keep operations running without delays often caused by manual coordination. Customer commitments depend on accurate, up-to-date information across inventory, production, and logistics. Dynamics 365 Supply Chain Management connects these data points so teams can ensure that order promising reflects current conditions—reducing the risk of overpromising and enabling earlier communication when changes occur. 

“With Dynamics 365, we gain real-time visibility into our inventory across all locations, empowering faster, data-driven decision making and enhancing our overall operational agility.” 

Erdal Arslan, Financial Affairs Group Manager, LC Waikiki 

Order to cash: Enabling a smooth end-to-end customer order experience

Whether it is B2B or B2B2B, agentic commerce can connect customers to the right distribution channel, automate and accelerate the purchase experience from quote-to-order and the availability of accurate data increases speed and agility across the supply chain processes.  

Service to deliver: Optimizing asset performance and seamless field operations 

AI and agents in field service can provide timely updates on asset and work order information and coordinate field technician schedules that in turn improves overall production uptime, efficiency of delivery and customer satisfaction. 

Connect with us at the Gartner Supply Chain Symposium 

We invite you to engage with our leaders and explore these innovations firsthand during the symposium. Whether you are looking to learn more about the technology or for a strategic conversation on business outcomes, there are several ways to connect: 

• Our Featured Session: From Intelligence to Impact: Agentic AI for Faster, Smarter Supply Chains. Join Sameer Verma, Raghav Jandhyala, and Jodi Larson for a deep dive into how organizations are moving from initial AI exploration to achieving impact with agentic supply chain transformation. 

• Executive Boardroom: Join Sameer Verma, Raghav Jandhyala, and your fellow supply chain leaders for a strategic conversation and best practice sharing session where we’ll discuss how agentic-based approaches can improve supply chain speed, resilience, and business impact. CSCO Boardroom: Win the Volatility Era: Build a Faster, Agentic Supply Chain. 

Also, be sure to visit our booth during expo hours to talk to our experts and experience Dynamics 365 Supply Chain Management in person.  

The post From intelligence to impact: How agentic AI is reshaping today’s supply chain appeared first on Microsoft Dynamics 365 Blog.

Manufacturing leaders today are under constant pressure: volatile demand, fragile supply networks, inventory risk, and zero tolerance for missed customer commitments. Plants must protect margins and maintain uptime while responding to disruption with incomplete or delayed information. 

To lead in this environment, manufacturers need decision-making that surfaces risk earlier, absorb supply shocks faster, and replans quickly, so production stays aligned to demand and customer commitments. 

Microsoft Dynamics 365 is your agentic enterprise resource planning (ERP) foundation

Dynamics 365 gives manufacturers a connected foundation where signals from demand, supply, capacity, and cost can drive action. As part of the Microsoft platform, it brings together data, analytics, automation, and collaboration across the business. 

Imagine a manufacturing stack where every part of the business is connected, where data isn’t fragmented across systems but unified into a shared understanding of operations, and where insights don’t sit in dashboards but show up in context, in the flow of work. Where your teams can build AI agents and adapt processes in real time rather than reengineering them months later. Where every person operates with the full context of the business, demand, supply, capacity, and commitments, every decision drives aligned action across the company. This is what it means to close the gap between knowing and doing. 

At Hannover Messe 2026, Microsoft is showcasing how agentic ERP with Copilot, agents and Dynamics 365 supports these operational decisions amid constant change, helping manufacturers replan faster, make better production tradeoffs, and meet or exceed customer service SLAs.   

From sensing demand shifts to mitigating supplier delays, production constraints, and equipment downtime, these signals must translate into real-time fulfillment and order promise decisions. Agentic ERP can connect planning, sourcing, production, fulfillment and service commerce to execute these decisions across the manufacturing value chain. 

Agentic demand planning can sense shifts earlier  

Demand planning can help you forecast demand, applying a structured phase in/phase out with external signals to account for market dynamics. Copilot accelerates this data analysis, scenario modeling, and incorporates market intelligence. For structured planning, Demand Planning in Dynamics 365 Supply Chain Management provides an agentic collaborative demand planning solution, powered by best-in-class forecasting algorithms and models, an immersive user experience with AI, intelligent segmentation and signal analysis, and analytics.  

“Now, we can see the item-level details and the solution populates Dynamics 365 with that information for master planning. That’s a big step forward because now we essentially have a planned budget and we can easily produce the next production cycle’s budget without manually exporting the data.” 

Patrick Keller, Head of ERP, Poloplast | Read more about how Poloplast modernizes manufacturing and streamlines forecasting and planning with Dynamics 365

Agent evaluates supplier disruption impact enabling operational resilience 

A delayed component or supplier exception is not a paperwork problem. It is a production and operational risk. Today, Microsoft announced the Procurement Agent in Dynamics 365 Supply Chain Management is available in public preview. The Procurement Agent helps teams respond faster to supply disruption by decoding supplier communications and identifying which production orders, inventory positions, and customer commitments are at risk, while keeping humans in control. Beyond triaging supplier communications, the Procurement Agent performs impact analysis so teams can assess downstream effects and act before a supplier issue turns into an on time, in full (OTIF) failure.

“Across the team, Dynamics 365 will save us a total of 20 hours weekly. The big benefit in time savings is that the agent has read the email, found the order, found the lines affected, decoded what the vendor is trying to say, and recommended actions.”

Sean Barrett, Inventory and Analytics Manager, Farmlands Cooperative | Read more about Farmlands Cooperative: Sowing the seeds of innovation with autonomous agents in Dynamics 365

Agent mitigates production constraints 

For the shop floor, Copilot, connected to Dynamics 365 Supply Chain Management via Dynamics 365 MCP Server (Model Context Protocol), can provide AI-generated insights to schedules, inventory, and orders. Copilot can also surface quality-related alerts and can suggest targeted inspections to prevent recurring recalibration issues enabling supervisors to proactively mitigate resource constraints and shortages before they impact production schedules, triggering downstream inventory repositioning and order promise adjustments across fulfillment and customer commitments. 

Dynamics 365 Supply Chain Management provides near real-time visibility to the production floor; with agentic experiences, supervisors can spend less time gathering data and more time on proactive exception management. This translates to higher Overall Equipment Effectiveness (OEE), fewer unplanned stops, and better on-time delivery to customers. 

Agent protects production uptime 

Equipment uptime and asset health are critical inputs to manufacturing performance. Unplanned downtime, delayed service, or poorly coordinated technician schedules can quickly cascade into constrained capacity and missed production targets. The Scheduling Operations Agent in Dynamics 365 Field Service can help maintain equipment availability for constrained production schedules by dynamically coordinating technician assignments based on geography, skills, certification requirements, capacity, travel time, and SLA commitments.  

Today, Microsoft announced Researcher in Microsoft 365 Copilot is available in public preview within Dynamics 365 Field Service. With Microsoft 365 Copilot in Dynamics 365 Field Service, manufacturers can use Researcher to quickly view operational information across work orders, asset and service history, and parts availability. Researcher surfaces relevant context from Field Service data and Microsoft 365 signals to help teams understand situations as they arise.

“The field technicians understand that AI can be a benefit for them. It’s really about trying to improve their overall experience as well as the customer’s”

Matthew Hashenberger, Head of Service Excellence, Siemens Smart Infrastructure (U.S.) | Learn how Siemens elevates field service operations with Microsoft Dynamics 365

Agentic warehouse management can fulfill demand faster  

As finished goods hit the warehouse, intelligent inventory on-hand balancing in Dynamics 365 Supply Chain Management warehouse management updates slotting to align demand with pick zones. When inbound put-away happens, workers are directed to the best locations based on the intelligent inventory balancing, keeping the warehouse organized dynamically. On the outbound side, optimized pick routes shorten travel distance. The combined outcome is higher throughput with the same labor—faster fulfillment, lower picking cost.  

With Dynamics 365, we trust the system. It’s easy to retrieve information and know it’s correct; people can just drive the forklift over. All the considerations we have for our picking, packing, and customer details, the system is doing it for us. 

Niclas Strand, Warehouse Manager, KåKå, Orkla Food | Read more about why Orkla Food Ingredients’ Dynamics 365 transformation is a sweet upgrade

Agentic B2B Commerce aligns customer orders to production reality 

As manufacturers and industrial distributors modernize how they sell, serve, and scale, digital ordering is becoming a core capability of the ERP rather than a standalone channel. Dynamics 365 Commerce enables manufacturers to support complex buying and selling models including business-to-business (B2B), business-to-business-to-business (B2B2B), and multioutlet ordering across direct customers, distributors, and dealer networks. 

Agentic B2B commerce can help automate routine ordering, replenishment, and quote-to-order processes while remaining tightly connected to pricing, inventory, warehousing, and production planning. This can allow manufacturers and distributors to accelerate order cycles, strengthen partner collaboration, and scale indirect growth with accuracy and control. 

Partner agents to empower manufacturers and solve unmet needs 

Frontier Manufacturing Firms can extend ERP embedded‑operational decisioning using Copilot and agents built with the Dynamics 365 ERP MCP Server. Microsoft’s partners are building agents to solve high friction manufacturing workflows, including engineering change impact analysis, product recalls, and configure-price‑quote‑ processes, enabling manufacturers to execute operational decisions across sourcing, production, and fulfillment within the systems they use to run their business. 

“With the Experlogix CPQ MCP Server and Dynamics 365 ERP manufacturers can turn Copilot into a revenue agent that understands complex configurations, validates engineering rules and constraints, and generates accurate quotes instantly. This accelerates sales cycles, with many customers reducing time to quote by well over 90%.”

Louis-Philippe Perras, CTO, Experlogix 

“Cegeka’s Quality Impact Recall Agent turns disruptive recall events into a controlled, orchestrated process for manufacturers reliant on end-to-end traceability. Running inside Dynamics 365 Supply Chain Management, companies handling batch- or serial-controlled products can identify affected materials across plants and distribution channels in minutes, trigger automated communication flows, and accelerate quality-investigation cycles. This approach supports manufacturers in maintaining continuity, reducing risk, and protecting both customers and brand reputation.” 

Stijn Geeroms, VP Business Solutions, Cegeka

“The most expensive moment in manufacturing isn’t when something breaks. It’s when an engineering change gets approved without anyone understanding the impact. Manufacturers don’t need another disconnected AI tool to fix that. They need intelligence embedded where they already work. That’s why we built the Staedean ECM+ Impact Agent natively on Copilot inside Dynamics 365 – your rules, your data, your answer – without asking teams to leave the system they run their business in.”

Michiel Toppers, Chief Product Officer, Staedean

These agents extend ERP-embedded decision execution into engineering, quality, and configure-to-order workflows that directly impact production scheduling and customer commitments. 

Become a Frontier Manufacturing Firm 

The manufacturers that lead this next era will be the ones who can respond to demand shifts, supplier delays, and equipment constraints by coordinating planning, production, fulfillment, and customer commitments across the value chain in real time. 

Microsoft is committed to helping manufacturers make that transition, combining a connected Dynamics 365 foundation with Copilot and agents embedded in everyday workflows plus a partner ecosystem that brings manufacturing expertise to the front line. Join us and become Frontier.  

Join us in person at Hannover Messe 2026: 

• Return on Intelligence: The Next Frontier of Manufacturing, Dev Cupp, Yitshak Kesselman, Monday, April 20, 2026, 2:00 – 2:30, Hall 25, Center Stage
• From Insight to Action: The Rise of Agentic Supply Chains in Manufacturing, Sam Schotte, Monday, April 20, 2026, 3:30 – 3:50, Hall 17, Stand G06 

Register to watch a series of executive conversations recorded at Hannover Messe 2026: Executive Insights: Unlock the Future of Industrial Intelligence 

The post Becoming a Frontier Manufacturing Firm: Agentic decisions across the manufacturing value chain appeared first on Microsoft Dynamics 365 Blog.

We’re entering a new era of AI-powered business applications, and today we’re excited to publish the 2026 release wave 1 plans for Microsoft Dynamics 365, Microsoft Power Platform, and role-based agents in Microsoft 365 Copilot, outlining a broad set of capabilities slated for release between April 2026 and September 2026. These updates reflect our ongoing commitment to making AI an essential partner in how organizations operate, innovate, and grow.

Dynamics 365 leads this wave with AI-powered, agentic innovations across sales, service, finance, supply chain, human resources (HR), and commerce—helping organizations unify data, automate processes, and elevate customer and employee experiences. Microsoft Power Platform continues to expand modern app development, intelligent automation, and enterprise-grade governance to empower makers and developers to innovate with confidence. Role-based agents in Microsoft 365 Copilot further evolve into intelligent daily command centers, helping to deliver richer, data-grounded insights and extensibility that help teams work smarter across every role.

To help you stay current on the most important and innovative capabilities, we’re moving beyond bi-annual launch events to lighter, more frequent business applications updates, featuring expert insights and demonstrations from Microsoft product leaders and engineers.

• Watch on demand: Dynamics 365 Business Applications Update
• Register for the Power Platform and Copilot Studio update April 15 at 9 AM PDT

Be sure to stay updated on the latest features and create your personalized release plan using the release planner.

Highlights from Dynamics 365

2026 release wave 1 updates for Dynamics 365 deliver AI-powered, agentic experiences across sales, service, finance, supply chain, commerce, HR, projects, sustainability, and enterprise resource planning (ERP)—bringing deeper Copilot integration, intelligent automation, unified customer and operational data, and enhanced cross-app capabilities to help organizations drive efficiency, elevate customer and employee experiences, and operate with greater agility and confidence.

Dynamics 365 Sales

Dynamics 365 Sales brings the power of AI to help sellers build their pipeline, enrich opportunities, and accelerate deal closure, while helping sellers easily access accurate, up-to-date information and recommending high-impact actions that sellers can take. Copilot experiences in Dynamics 365 Sales can draw on data spanning customer relationship management (CRM) and Microsoft 365 signals, like email and meeting recaps, to deliver actionable insights across Dynamics 365 and Microsoft 365 experiences.

Dynamics 365 Customer Service

Dynamics 365 Customer Service will continue to enhance agentic capabilities across case management, email, customer intent, quality evaluation, and knowledge management. AI-infused admin and supervisor help to provide more transparency and quicker time-to-value. These investments strengthen end-to-end service orchestration, from helping identify customer intent to driving autonomous workflows that elevate service quality and responsiveness.

Dynamics 365 Contact Center

Dynamics 365 Contact Center advances the agentic contact center in 2026 release wave 1 with new AI-powered capabilities that improve self-service, support accelerate assisted service, and help organizations run contact center operations more intelligently in 2026 release wave 1. It expands to include emerging channels, supervisor insights, and extensibility, giving organizations a unified, AI-powered system to elevate the customer experience.

Dynamics 365 Field Service

Dynamics 365 Field Service strengthens service execution across technician productivity, resource scheduling, and work order management. Investments focus on mobile usability and reliability, intelligent scheduling through the Scheduling Operations Agent, and end‑to‑end execution across assets, projects, and financial operations in this release wave. Together, these updates help organizations manage service complexity and deliver consistent service outcomes.

Dynamics 365 Sustainability

Dynamics 365 Sustainability introduces more intuitive reporting navigation, advanced calculation versioning, and granular data‑locking to reinforce governance and regulatory confidence in this wave. Expanded finance integration, streamlined workflows, and updated templates and factor libraries will further empower organizations to make informed decisions and support progress toward their sustainability goals.

Dynamics 365 Finance

Dynamics 365 Finance delivers continued global scale enhancements that drive greater financial automation, strengthen global regulatory compliance posture, and enhance financial planning and analytics—helping organizations operate more efficiently and achieve their financial and operational goals with confidence.

Dynamics 365 Supply Chain Management

Dynamics 365 Supply Chain Management’s 2026 wave 1 enhances supply and demand planning with price-demand correlation and capacity-to-promise (CTP) date protection. Supplier communication and engagement are streamlined, while warehousing gains AI-powered picking, inventory rebalancing, and hands-free scanning—driving supply chain efficiency.

Dynamics 365 Project Operations

Dynamics 365 Project Operations brings rich capabilities in 2026 release wave 1—from change order support and smarter project planning to smoother quoting, budgeting, and contract workflows. New enhancements streamline item consumption, mobile expense management, subscription billing, and modern-architecture migration—delivering connected project experience.

Dynamics 365 Commerce

Dynamics 365 Commerce strengthens business-to-business (B2B) with multi-outlet ordering, unified sign-in, outlet-specific catalogs, and built-in credit management to help reduce friction and protect cash flow. It modernizes order management and assisted-selling workflows in retail stores, helping to improve associate productivity, and customer experiences across channels. It also enables cross-legal-entity inventory lookup and flexible, attribute-based pricing to help accelerate mass updates and help drive higher sales.

Dynamics 365 Human Resources

Dynamics 365 Human Resources continues to advance in areas such as recruitment, onboarding, reporting, and integrated workforce management. By merging enhanced user experiences with broader ecosystem integration and expanding regional payroll collaborations, the platform enables organizations to optimize employee engagement, support operational accuracy, and confidently achieve their workforce objectives.

Finance and operations cross-app capabilities

Finance and operations cross-app capabilities will introduce new enhancements that strengthen the foundation for AI experiences across Dynamics 365. These updates include improvements to Model Context Protocol (MCP) servers, as well as the general availability of immersive home, which is an AI-powered workspace designed to help users stay focused and prioritize what matters most.

Dynamics 365 Customer Insights – Data

Dynamics 365 Customer Insights – Data acts as the grounding layer for CRM copilots and AI agents, delivering real‑time, unified customer profiles that help power accurate decisions. With enriched data, teams can act on insights directly in their workflow to deliver timely, personalized experiences that deepen engagement and drive better outcomes. The result is an AI-ready data core that elevates agents and helps deliver more connected, intelligent CRM experiences.

Dynamics 365 Customer Insights – Journeys

Dynamics 365 Customer Insights – Journeys empowers end-to-end, agentic customer engagements across sales, marketing, and service, allowing businesses to proactively react to customer behavior using Copilot and AI agents. With smarter orchestration tools, teams can deliver impactful campaigns at scale to drive stronger relationships, higher efficiency, and revenue growth. Part of Dynamics 365, every interaction within your organization benefits from shared data and consistent intelligence across Microsoft CRM applications.

Dynamics 365 Business Central

Dynamics 365 Business Central accelerates the move to agentic ERP with enhancements to our AI‑powered agents that automate sales and purchase scenarios in 2026 release wave 1. Alongside new business capabilities, we invest heavily in developer productivity to support extensibility—improving advanced language (AL) testing, debugging, Copilot extensibility, and agent design.

Highlights from Microsoft Power Platform and Microsoft Copilot Studio

2026 release wave 1 updates for Microsoft Power Platform deliver modernized app experiences across Power Apps and Power Pages, AI-powered automation and agent innovation in Power Automate and Copilot Studio, enhanced Dataverse intelligence and programmability, and strengthened governance, security, and cost management capabilities to help organizations build, scale, and manage intelligent solutions with confidence.

Power Apps

Power Apps continues to modernize app experiences with a refreshed model-driven user interface (UI), improved mobile and offline capabilities, streamlined search, and expanded AI features. This release brings standardized modern theming to everyone, real-time Dataverse access for offline-first canvas apps, enhanced search in grids and lookups, and broader availability and extensibility of generative pages to help teams build and scale intelligent apps faster.

Power Pages

Power Pages will further empower pro-developers and low-code makers to build intelligent business portals for your employees, customers, citizens, and partners through better integration with market leading AI tools. Additionally, enhanced security agent features will further support low-code makers, pro-developers, and admins with actionable insights and abilities for securing their websites.

Power Automate

Power Automate is Microsoft’s comprehensive automation platform for cloud flows, desktop flows, and process mining. This release introduces AI agent authoring, optimization, and self-healing capabilities for desktop flows, Copilot Studio-powered actions in cloud flows, enhanced maker and collaboration tools across both, general availability of object-centric process mining, and consolidated governance reporting.

Microsoft Copilot Studio

Microsoft Copilot Studiocontinues its journey to make agent and agentic workflows even easier to build and more powerful. Now you can further customize agents built with Agent Builder in Microsoft 365 Copilot, and power your automation with high value AI actions. Deeper governance, multi-agent orchestration, and evaluations enable further scaling. With connections to Microsoft Foundry and Work IQ, your agents can use the latest AI technology in coordination with your organizational data.

Microsoft Dataverse

Microsoft Dataverse continues to invest in enterprise-ready agentic and low-code data platform capabilities. The spotlight is on Work IQ and Copilot integration, delivering organization-specific decisions with adaptive learning and full auditability. We’re also enhancing agent programmability with Dataverse APIs, MCP servers, and Python SDK, plus new storage management tools for enterprise-grade compliance at scale.

Microsoft Power Platform governance and administration

Microsoft Power Platform governance and administrationintroduces admin controls for agent security, real-time risk assessment in Copilot Studio, and AI-powered governance agents that automate tenant monitoring and remediation in this release. Enhanced visibility into usage patterns, granular Copilot credit usage with pay-as-you-go (PAYG) caps, and connector dependencies help you optimize costs, demonstrate return on investment (ROI), and enforce compliance with organizational policies using features within the Power Platform Admin Center. GitHub integration and deploy from Git mature your application lifecycle management (ALM) practices with full audit trails.

Business Applications Update

Power Platform &

Copilot Studio edition

Watch on demand

Updates to role-based agents in Microsoft 365 Copilot

2026 release wave 1 updates for Microsoft role-based agents transform Sales Agent and Finance Agent in Microsoft 365 Copilot into intelligent daily command centers, helping to deliver richer, data-grounded insights, enhanced chat and mobile experiences, contextual support across Outlook and Teams, and strengthened governance and extensibility to help organizations drive productivity and scale AI responsibly.

Sales Agent

Sales Agent becomes the seller’s daily command center with richer Sales Chat and Sales Home experiences across desktop and mobile in 2026 release wave 1. Sellers will gain streamlined access to deal and account insights through configurable record summaries, contextual support in Outlook and Teams, and improved email and meeting intelligence. New governance and extensibility controls will also help organizations scale AI responsibly.

Finance Agent

Finance Agent helps finance professionals and their stakeholders interact with financial information from their ERP within the flow of work. In 2026 release wave 1, we continue expanding how this financial assistant supports common finance tasks such as reconciliation, variance analysis, and data preparation in Excel, as well as customer communications in Outlook. By bringing financial insights and assistance directly into familiar productivity tools, the Finance Agent helps teams investigate issues faster, respond to stakeholders more efficiently, and spend less time manually preparing or reconciling data so they can focus more on financial analysis and decision support.

For a complete list of new capabilities, please refer to the Dynamics 365 2026 release wave 1 plan, the Microsoft Power Platform 2026 release wave 1 plan, and role-based agents 2026 release wave 1. We also encourage you to share your feedback in the community forums for Dynamics 365 and Microsoft Power Platform.

Business Applications Update

The Business Applications Update offers an early preview of new capabilities coming in the months ahead. This refreshed structure is designed to reflect the reality of our time: innovation does not happen twice a year; it is constant. Whether you are a strategic leader or a hands-on practitioner, this new cadence is built to get you quickly up to speed.

• Watch on demand: Dynamics 365 Business Applications Update
• Watch on demand: Power Platform and Copilot Studio Business Applications Update

The post 2026 release wave 1 plans for Microsoft Dynamics 365, Microsoft Power Platform, and Copilot Studio offerings appeared first on Microsoft Dynamics 365 Blog.

As enterprise workloads become more agentic, the expectations of ERP systems—and the teams that operate them—are shifting. Batch jobs, workflow orchestration, data import/exports, and background processes are no longer “just” technical plumbing–they are critical pieces of the operational fabric. They deliver timely financial results, accurate supply chain data, and reliable business intelligence driving process optimization. 

To support this shift, observability needs to evolve beyond simple logs and reactive troubleshooting. Observability needs to provide meaningful insights into execution behavior, performance patterns, and operational context. This ensures IT teams can run ERP with confidence and reliability. 

In Dynamics 365 ERP apps, we’ve long provided integration with Azure Application Insights to help organizations collect telemetry about user activity, failures, and application behavior. Now, with the expansion of batch telemetry signals — including start/stop events, failure data, throttling conditions, thread availability, and queue behavior — administrators and IT architects can gain deeper visibility into the health of critical batch-based workloads.  

Why Observability Matters Now 

ERP observability historically focused on basic monitoring. It observed which jobs were running, whether a job failed, or whether alerts were triggered. These indicators are useful, but they lack operational context. Modern enterprise workloads are increasingly interconnected, and automation driven. Delays or failures in one workload can ripple outward, affecting downstream processes, reporting accuracy, and service delivery. 

At the same time, teams are beginning to rely on AI agents to help monitor, diagnose, and in some cases suggest remediation steps. These tools need high-quality signals to be effective. 

Batch workloads are a prime example. Batch jobs directly impact business outcomes, from overnight posting to inventory sync and settlements.
Without execution insights, teams guess root causes and waste time on manual investigation.

What Batch Telemetry Brings to the Table 

The monitoring and telemetry capabilities in Dynamics 365 ERP enable customers to send application telemetry to Azure Application Insights for analysis and alerting. The recent expansion of telemetry signals for batch workloads builds on this foundation by adding behavioral data specifically for batch execution patterns. 

These signals include: 

• Batch start and stop events to show how long jobs take to run, not just whether they completed. 

• Failure information that correlates with info log entries and execution context. 

• Throttling indicators that highlight contention due to system load. 

• Thread availability data that helps reveal when jobs are waiting because capacity is constrained. 

• Queue depth metrics shows number of waiting tasks for all queues that are part of the Priority Based Scheduling queues.  

Emitting these signals into a customer-owned Application Insights resource means teams can apply their existing monitoring pipelines, dashboards, and alerting logic without changing how data is consumed. 

From Visibility to Insight 

Once batch telemetry data flows into Application Insights, teams can query it using Kusto Query Language (KQL) and build dashboards that correlate workload behavior with other operational metrics.  

This richer observability enables several practical outcomes: 

• Faster investigation of execution behavior without sifting through logs. 

• Trend analysis to detect regressions or capacity bottlenecks before they impact business cycles. 

• More informed capacity planning based on actual observed patterns. 

• Alignment of SLA expectations with real operational performance. 

Here are some real‑world business scenarios that show how telemetry insights are helping customers troubleshoot issues and resolve problems faster. 

A global consumer goods company frequently sees high priority jobs completing late. Batch Queue telemetry exposes queue congestion and thread exhaustion, showing when noncritical tasks bury priority workloads.

It helps surface when priority-based scheduling queues build up and delay time‑sensitive workloads, while also revealing misconfigured priorities that cause jobs to be processed out of order. It further enables teams to closely monitor queue health during cutover or high‑load events, ensuring critical workloads flow smoothly. 

Similarly, a finance team’s bank reconciliation jobs remain “Waiting” for long periods. Thread telemetry reveals thread starvation—jobs were queued, but threads were fully consumed. 

It helps explain why jobs remain stuck in a “Waiting” state by revealing when thread capacity is fully consumed by parallel workloads. It also highlights thread saturation patterns, enabling teams to right‑size AOS batch capacity for smoother, more predictable processing. 

A Foundation for Intelligent Operations 

The expanded telemetry signals are not just a diagnostic tool. They serve as a foundation for smarter operations in an era where agents play an increasing role. High-fidelity Batch telemetry enables experiences like: 

• Automated detection of anomalies based on execution baselines. 

• Correlation of workload performance with business-critical thresholds. 

• Enhanced alerts that tie operational conditions to business impact. 

By making execution behavior more observable and actionable, Dynamics 365 ERP helps teams focus on outcomes, not just symptoms. 

Getting Started 

If you haven’t already configured monitoring and telemetry for your environment, the first step is to integrate your Dynamics 365 ERP instance with Azure Application Insights – refer. Monitoring and telemetry overview – Finance & Operations | Dynamics 365 | Microsoft Learn .  

Once telemetry is configured, expanded batch signals can be toggled on from within system administration and begin flowing to your Application Insights pipeline for analysis.  

Rich observability is a core requirement for running modern ERP workloads, especially as organizations adopt more automation and begin exploring agent-assisted operational tooling. By bringing deeper insight into batch execution behavior, our ERP portfolio apps in Dynamics 365 helps IT teams move from reactive troubleshooting toward proactive reliability and informed decision-making.  

For more details visit Available telemetry – Finance & Operations | Dynamics 365 | Microsoft Learn. 

The post Building Smarter Observability for Agentic ERP World using Dynamics 365  appeared first on Microsoft Dynamics 365 Blog.

When customers place an order, they expect speed, accuracy, and reliability. Behind the scenes, inventory-to-deliver processes are what makes that promise possible, helping to ensure the right products are available at the right time to meet customer expectations while controlling costs. For operational professionals, inventory isn’t just a number on a spreadsheet, it’s the lifeline of the supply chain. It determines whether you can fulfill demand without delays, avoid costly stockouts, and keep working capital flowing. From procurement and production to fulfillment and customer satisfaction, inventory-to-deliver impacts every aspect of the supply chain.

In today’s fast-paced market, poor inventory visibility can lead to stockouts, excess holding costs, and missed revenue opportunities. Conversely, a well-orchestrated inventory strategy drives efficiency, reduces waste, and strengthens resilience against disruptions. It enables businesses to optimize working capital, improve cash flow, and deliver on promises consistently. So, how can an agent-ready enterprise resource planning (ERP) platform reinvent the inventory-to-deliver process?

Microsoft Cloud and agent platform enables inventory to deliver transformation

Microsoft Dynamics 365 can transform inventory management from a reactive task into a strategic advantage with an agent-ready foundation that spans across finance, supply chain, sales, and operations for a single source of truth that is both scalable and secure.

This same data foundation enables customers to buy, build, and customize agents to infuse across processes. For a refresher on understanding the agent landscape available today, visit Reinventing business process with AI: Agents in record to report where we explore the difference between first party, third party, and custom agents.

Automate vendor communication with a first party agent from Dynamics 365

The Supplier Communications Agent in Dynamics 365 Supply Chain Management is designed to automate routine procurement communications between purchasing teams and vendors. Traditionally, these interactions—such as following up on purchase orders or confirming changes—are manual, repetitive, and often handled via email, even in organizations using electronic data interchange (EDI). The Supplier Communications Agent can streamline these low-complexity tasks by automating vendor outreach and updates, freeing procurement professionals to focus on strategic activities. This not only seeks to improve efficiency but also reduces overall procurement costs by minimizing time spent on administrative work.

Explore partner agents to support the inventory to deliver process

Model Context Protocol (MCP) servers are configurable bridges between the business data within your line-of-business apps and the partner or custom-built agents you want to use. MCP serves as a universal intermediary, unlocking access to a unified platform and app data, modernizing how AI agents are interoperable with your apps. Let’s explore a few partner-built agents that will help you realize value across your supply chain today.

Warehouse Advisor Agent by MCA Connect

The Warehouse Advisor Agent leverages machine learning and predictive analytics to automate and improve key processes such as slotting, inventory consolidation, and cycle counting. By analyzing real-time data and historical trends, the agent delivers actionable insights that help warehouse teams make smarter, faster decisions.

This solution is ideal for warehouse managers, operations leaders, and supply chain professionals in distribution and manufacturing industries who are looking to reduce inefficiencies, improve inventory accuracy, and increase labor productivity. It integrates seamlessly with Dynamics 365’s Warehouse Management System (WMS), enabling users to deploy intelligent automation without disrupting existing workflows.

Inventory Acquisition and Re‑Balancing Agent from RSM

The Inventory Acquisition and Re‑Balancing Agent from RSM enables smarter inventory decisions by analyzing demand signals, supply availability, and stock imbalances in Dynamics 365. The agent can recommend rebalancing and acquisition actions to reduce stockouts, minimize excess inventory, and improve working capital efficiency.

Inbound Load Agent from Fellowmind

Fellowmind’s Inbound Load Agent can streamline inbound logistics by intelligently composing and optimizing loads based on demand, capacity, and operational constraints within Dynamics 365. The agent seeks to help logistics teams reduce transportation costs, improve warehouse utilization, and simplify complex inbound planning decisions.

Get started with agents for inventory-to-deliver processes

The Microsoft platform brings together secure, scalable cloud services with Dynamics 365’s unified ERP capabilities to streamline the entire inventory-to-delivery process. By leveraging real-time data and intelligent workflows, businesses gain supply chain agility to better meet customer expectations with precision. Partner-built agents, powered by MCP, amplify this value, enabling autonomous actions and predictive insights that transform operations from reactive to proactive. Together, these innovations create a resilient, future-ready foundation for delivering efficiency and growth at scale.

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The way we work is transforming. Generative AI and agentic business applications are catalysts for a profound shift in how we create, collaborate, and make decisions. What once took hours now happens in moments. Ideas move faster, insights surface sooner, and the boundaries between human creativity and machine capability are blurring. This isn’t the future—it’s unfolding now, and it’s changing the very fabric of how businesses operate.

It’s a move from systems of record to systems of action. In this new era, AI agents go beyond support—they help interpret signals, uncover patterns, and initiate actions and continuously optimize processes on your behalf. At Convergence 2025, December 9–12, we’ll explore how organizations can build an AI-first autonomous enterprise powered by data, copilots, and agents working together across Microsoft Dynamics 365 and the Microsoft Cloud.

From automation to autonomy: The AI-first organization

Businesses have long pursued automation to streamline operations. The next leap is autonomy—systems that interpret signals across the business, adapt workflows in real time, and anticipate decisions. Autonomous enterprises go beyond efficiency—they are driven, adaptive, and human-centered, with intelligent systems that understand context, collaborate across processes, and deliver measurable outcomes.

We believe the recognition of Microsoft Dynamics 365 Leader placement in Gartner® Magic Quadrant™ and IDC MarketScape reports reinforces our ability to connect front-end and back-end operations into one intelligent ecosystem. Our leadership is grounded in the breadth of the Microsoft Cloud, the depth of our data estate, and our ability to bring AI, analytics, and business applications together as a unified platform to accelerate end-to-end AI transformation.

Agentic business applications are built on three connected pillars: data, Copilot, and agents—working together to change how work gets done.

1. Data: The foundation of agent autonomy

Most business processes begin with data. Finance close, order-to-cash, customer insights, case resolution, supply chain planning, field service, HR workflows—each depends on complete, connected, trusted information. When this data is fragmented across systems, agents can’t act with autonomy, and AI can only answer questions instead of accelerating outcomes.

Dynamics 365 spans both front-office and back-office operations—customer relationship management (CRM) and enterprise resource planning (ERP)—providing a continuous, end-to-end view of customers, employees, finances, supply chain, and operations. This structured, governed, and auditable data is the backbone of business processes—how work flows, how controls are enforced, and how organizations maintain compliance at scale.

As business model innovation becomes even more important, we continue to invest deeply in these core applications. We’re expanding capabilities across ERP and CRM, investing in bringing Microsoft Fabric, Microsoft Copilot Studio, and Microsoft Power Platform closer to Dynamics 365 than ever before. From connected frontlines to adaptive supply chains, business applications are becoming composable, intelligent, and outcome-driven—helping customers innovate more quickly while maintaining trust, security, and governance, adapt faster, redesign workflows, and build the operational integrity required for agent-powered processes. At Convergence 2025, you’ll see how Dynamics 365 continues to evolve as the operational engine of AI-first organizations.

At Microsoft Ignite 2025, we announced major advances in how agents connect with ERP systems. The Dynamics 365 ERP Model Context Protocol (MCP) server is evolving from static actions to a dynamic, configurable framework that adapts as business needs evolve. A new analytics MCP server extends this capability to structured metrics and insights, supporting agents to reason over governed operational and financial data—not snapshots or exports, but live business signals. Together, these updates unify data, logic, and actions into a common protocol that can simplify integration and accelerate automation.

And with MCP designed for massive scale—including support of millions of ERP actions—organizations gain the performance and extensibility required for agent-powered business processes at enterprise scale.

The entire Microsoft data and application stack—Dynamics 365 ERP and CRM, Dataverse, Fabric, and more—forms the operational engine of agentic transformation. It provides the structure, governance, and adaptability required to support AI-powered business models and next-generation workflows.

2. Microsoft 365 Copilot: Your strategic productivity partner

Copilot continues to help transform productivity across many roles. It helps sales teams move deals forward, finance teams accelerate reconciliation, and service teams resolve issues before they escalate. But Copilot is more than an assistant—it’s the connective layer that links people, data, and systems, understanding intent, orchestrating workflows, and guiding decisions across Dynamics 365, Power Platform, and Microsoft 365.

3. Agents: Plan, decide, and act

We expect AI agents will be core to how businesses operate—planning, deciding, and acting across systems to accelerate outcomes. These agents will interpret signals, identify patterns, and initiate actions to keep the business in motion.

Microsoft’s strategy spans the full agent ecosystem: first-party embedded agents inside Dynamics 365, agents for specialized industries that can be customized and extended by partners, specific partner-built agents, and custom agents created by organizations through Microsoft Copilot Studio. All share the same security, governance, and identity foundation.

For small to mid-sized businesses, Dynamics 365 Business Central brings agents directly into everyday finance and operations. The Sales Order Agent creates, validates, and updates sales orders which can help improve accuracy and speed by reducing manual entry and exception management. The Payables Agent automates vendor invoices and reconciliations, improving control while freeing finance teams from repetitive tasks. Together, these agents help Business Central customers modernize core processes with governed, AI-powered actions that keep work flowing across purchasing, sales, and accounting.

Across Dynamics 365 finance and operations, embedded agents are transforming core processes—from time and expense entry in Project Operations, to supplier outreach in Supply Chain Management, to reconciliations in Finance and technician scheduling in Field Service. These agents help reduce manual effort and bring greater precision and autonomy to everyday operations.

At Convergence 2025, we’re also thrilled to announce the public preview of the Product Change Management Agent Template—an AI-powered solution that transforms how manufacturers manage the process of change across equipment, products, and processes changes. Built on Copilot Studio, the agent automates workflows and connects critical systems, helping teams cut approval times from weeks to days, reduce errors, and bring innovations to market, faster. Learn how customers like Coca-Cola Beverages Africa (CCBA) are using this agent template to optimize their manufacturing operations.

Partner-built agents that extend industry workflows

Partners are building agents that extend domain workflows and connect directly to Dynamics 365 through the MCP. These solutions show how agent-to-agent coordination and cross-system reasoning will define the next era of enterprise automation.

Shop Floor by RSM helps manufacturers gain real-time visibility across production by bringing job details, quality checks, and operational signals into one experience. It can surface issues as they occur and support teams in resolving them quickly, helping to reduce disruptions and maintain consistent output. By connecting workers, data, and actions on the floor, the agent can support more resilient, adaptive manufacturing operations.

The PayFlow Agent by HSO helps finance teams manage vendor payment inquiries with greater speed and accuracy. It analyzes incoming emails, retrieves live payment data from Dynamics 365, and responds with up-to-date status information—which can reduce manual effort and help vendors receive clear, timely communication. The agent streamlines payment cycles and can improve transparency across accounts payable.

The Quality Impact Recall Agent by Cegeka helps organizations identify product quality issues and trace their impact across inventory and customer shipments. It coordinates notifications, guides corrective steps, and streamlines recall preparedness, which can help teams act quickly when risks emerge and maintain trust in the products they deliver.

Factorial connects to the Dynamics 365 Business Central MCP Server to deliver a new agent-to-agent experience. You can use a single Copilot interface to pull, exchange, and act on data across the systems. For example, within expense workflows, Factorial’s agent can request, validate, and reconcile financial data directly with Business Central.

Zensai’s agent integrates with Dynamics 365 Business Central to transform an organization’s operational signals into aligned goals and check-ins inside Microsoft 365. Built in Copilot Studio and connected through MCP for Dynamics 365, the agent converts finance, compliance, HR, and sales insights into structured, cascaded goals within Perform 365. At Convergence 2025, you’ll see how these first-party, partner, and custom-built agents form a connected ecosystem—and how organizations are already using them to move from automation to autonomy.

Convergence 2025

Convergence has always been where our community comes together to learn, connect, and imagine what’s next—and this year we’re reigniting that tradition at a moment of extraordinary change.

Throughout the event you’ll see how organizations are moving from systems of record to systems of agency, and how you can apply these ideas to accelerate your own AI transformation. I’m excited for you to experience everything we’ve been building.

• Learn more about Convergence
• Explore agentic business applications and agentic ERP solutions
• Sign up to receive 2026 Convergence updates

The post The era of agentic business applications arrives at Convergence 2025 appeared first on Microsoft Dynamics 365 Blog.