Optimize Inventory with Business Central and Copilot

Executive Summary

Inventory optimization is critical for profitability and customer satisfaction. Naviona helps organizations achieve this by leveraging Microsoft Dynamics 365 Business Central, Copilot AI capabilities, and proprietary Naviona extensions to streamline replenishment, forecasting, and decision-making.

Why Inventory Optimization Matters

• Cash & Carrying Costs: Excess stock ties up working capital and increases risk.
• Service Levels: Stockouts damage trust and drive expediting costs.
• Speed of Decisions: Copilot introduces conversational insights and AI-assisted actions.

Our Approach

naviona.combines Business Central configuration, Copilot enablement, and three powerful extensions:

• Naviona Copilot Inventory Queries Extension: Adds ready-to-use Copilot prompts for inventory analysis, such as:
  “Show items where safety stock will be breached in the next 14 days” or
  “List SKUs with lead time > 20 days and negative demand trend.”
• Naviona Planning Parameter Worksheet Extension: Provides a centralized worksheet for bulk updates of planning parameters (Reorder Point, Safety Stock, Time Bucket, etc.) with validation rules and anomaly flags.
• Naviona Demand Forecasting: generating demand forecasts for items based on history and AI.

Activate AI Forecasting + Copilot (with Naviona Extensions)

Business Central’s Sales and Inventory Forecast extension predicts demand and flags shortages. Naviona layers this with our Planning Parameter Worksheet to tune safety stock and reorder points in bulk for high-risk items and our Copilot Inventory Queries to scan for exceptions and variance using conversational prompts.

Practical Examples

Example A — Stabilize C-Class Fast-Movers

• Apply Fixed Reorder Qty. and adjust Order Multiples.
• Run Naviona Copilot Inventory Queries for safety stock breaches.
• Update parameters via Planning Parameter Worksheet.

Example B — Lot-for-Lot for Shared Components

• Switch to Lot-for-Lot and configure dampener periods.
• Use AI forecasting and validate parameters in the worksheet.

Example C — Conversational Risk Scan

• Morning prompt via Copilot Inventory Queries:
  “Summarize items with forecasted demand exceeding on-hand + inbound within 45 days.”
• Correct parameters in bulk using the worksheet.

Implementation Playbook

1. Discovery & Data Hygiene: Validate item/SKU completeness.
2. Policy Design: Map policies to ABC classes.
3. Parameter Tuning: Use Planning Parameter Worksheet for bulk updates.
4. Enable Forecasting & Copilot: Activate AI forecasting and Naviona extensions.
5. Pilot & Measure: Compare proposals and outcomes; refine parameters.

Copilot Prompt Playbook (Expanded)

• Risk Check: “Which items will breach safety stock in the next 30 days at Location MAIN?”
• Variance Scan: “List items where AI forecast deviates > 20% from manual forecast.”
• Policy Audit: “Show items with Fixed Reorder Qty. where Order Multiple doesn’t match supplier pack size.”

FAQs

How do these Naviona extensions fit into Business Central and Copilot?
They complement native BC planning and Copilot features by standardizing prompts and enabling validated bulk updates.

Conclusion

Inventory optimization isn’t a single switch—it’s a system. Naviona orchestrates Business Central, Copilot, and proprietary extensions to reduce costs, prevent stockouts, and accelerate decisions.