Microsoft Dynamics AX Technical Conference 2013 4/17/2017 2:17 PM © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

4/17/2017 2:17 PM Improvements in Distribution within AX2012 R3 focusing on inventory management Philippe Jacobsen Senior Program Manager Lead © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Introduction We are excited to share Microsoft Dynamics AX 2012 R3 with you… This presentation contains Microsoft confidential information Dynamics AX 2012 R3 is pre-release software and subject to change Microsoft provides no license, express or implied, in this presentation Please review and respect the disclaimer included in all printed and electronically distributed materials

Agenda Picking workbench Serial number improvements

Picking workbench in Microsoft Dynamics AX

What is it? A logistic functionality from Retail acquisition – an opportunity An enhancement to the WMSI picking functionality No need for WMSII configuration key It is an usability driven feature, Leverage existing functionality Add a comfort level on how to create picking lists Not a UI enhancement project

Target market, positioning Distribution, retail, fulfillment scenarios Parcel picking, order picking, simple case picking Not B2B advanced requirement, consolidated picking Paper based operation Only Sales Order A supplement to Advanced Warehouse System (WHS)

Target market, positioning Microsoft Dynamics AX Technical Conference 2013 4/17/2017 2:17 PM Target market, positioning Central Warehouse WHS Sales DC WMSI Not Transfer Sales Order Stores Direct sales Regional DC WHS Regional DC WMSII © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

How does it work? Create a batch of picking orders according to criteria Set-up using Profiles Orders can be split according to a boxing algorithm Setup all items with physical measurement Define a set of physical boxes The boxing calculation will select boxes “bottom-up” Fill-rate allows for flexibility in packing, weight included also as a restriction 10 4 1 10 4 1 10 4 1 Select 8 Select 12

How does it work? Allows for cart picking Box size on top of the printed picking list Pickers can select the various boxes Picking route organized according to location sorting Ship alone functionality supported too

Microsoft Dynamics AX Technical Conference 2013 4/17/2017 2:17 PM Demo Picking workbench © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Summary Picking Workbench capabilities - not supported OOB by WMS I Automatic release of sales orders per profile setup Grouping of picking lists and report grouping Split of picking routes per no. of lines Calculation and assignment of box size Split of picking routes per boxing logic Split of picking routes per ship alone indicator

Summary Allows for quick enhancement of the picking functionality Non invasive – easy to integrate A supplement to the WHS offering

Serial numbers in Microsoft Dynamics AX

Standard serial number support 4/17/2017 2:17 PM Standard serial number support Serial number is an inventory tracking dimension Serial numbers are tracked on inventory transactions On-hand maintained per serial number © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Typical scenarios Receipts Put-away Pick Shipment Returns Consumption Record serial numbers for tracking service and warranty obligations Account for what serial numbers are on stock Receipts Put-away Pick Shipment Locate specific serialized items in the warehouse Reserve specific serialized items Returns Consumption Production Returns Assign serial numbers in production Trace serialized items to a specific production or product receipt

On-hand inventory table InventSum Goal Provide aggregated cost and quantities per item and inventory dimension Table size proportional to inventory level Unfulfilled demand and supply Planned inventory level

On-hand inventory table InventSum Goal Provide aggregated cost and quantities per item and inventory dimension Table size proportional to inventory level Reality One record per serial number Closed records kept when items are sold On-hand performance degrades over time History of serialized items ever in inventory Unfulfilled demand and supply Planned inventory level

On-hand clean-up Closed on-hand entries Clean-up script Represent items that have been sold Cost and quantity is 0 On-hand for same tracking dimension will not re-appear in the future On-hand entry will be re-created in case of returns Clean-up script Deletes closed on-hand entries for items with tracking dimensions Possible to retain recently closed on-hand entries

Microsoft Dynamics AX Technical Conference 2013 4/17/2017 2:17 PM Demo On-hand clean-up © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

On-hand entries clean-up

Tracking serial numbers in the sales process

Service and warranty scenarios Microsoft Dynamics AX Technical Conference 2013 4/17/2017 2:17 PM Service and warranty scenarios Requirements Was the item actually sold by us? Which customer was the item sold to? When was the item sold? Has the item been returned? Who returned the item? When was the item returned? Challenges Large number of inventory transactions Performance impact on Inventory operations On-hand queries Invoice and packing slip postings Solution Do not treat serial numbers as inventory tracking dimensions No serial numbers on inventory transactions Track serial numbers in separate table © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Serial numbers in the sales process Printed on physical items Does not change form, fit and function Registered at shipment Not subject for reservation Packing Slip Invoice Shipment Item Tracing Sales Pickup Retail POS Returns Return Order Credit Note

Microsoft Dynamics AX Technical Conference 2013 4/17/2017 2:17 PM Demo Serial numbers in the sales process © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Data model Implementation goals Design choices Support only specific processes No change to existing reports No additional inventory transactions Scanner friendly registration Retail POS integration Design choices Not an inventory dimension Serial number dimension not active New table, InventTrackingRegisterTrans

Possible future development Microsoft Dynamics AX Technical Conference 2013 4/17/2017 2:17 PM Possible future development 3. Keep track of which serial numbers are on stock 5. Import serial numbers from external sources Receipts Put-away Pick Shipment 2. Register serial numbers upon product receipt 1. Register serial numbers in picking process 6. Check for duplicates 7. Validate serial number format Returns Consumption Production Returns 8. Return of purchased, serialized items 4. Bill of serials © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

In-market efforts

Microsoft Dynamics AX Technical Conference 2013 4/17/2017 2:17 PM In market Reduce posting pallet time Enable asynchronous financial posting using batch framework Synchronous Scheduled batch Periodic batch Pallet movement status form HF #: 2920359 Faster creation of on-hand counting journal Group queries to InventSum table in one transaction at the beginning of the processing HF #:2913844 © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Scheduled batch - Reduce posting pallet time A batch job will be automatically created to do the financial posting of the pallet move. Batch jobs resulting from “Scheduled batch” pallet movement will have the description “Pallet movement” as shown in the Batch jobs form below.

Periodic batch - Reduce posting pallet time Periodic batch is similar to Scheduled batch with the exception that periodic batch allows you to flexibly define how to run the batch job. The recommendation is that you define one or more batch groups for the periodic batch. In form Inventory and warehouse management>Periodic>F inancially update pallet movement you define the criteria for the batch job.

Pallet movement status In form Inventory and warehouse management>Periodic>Cle anup>Pallet movement status you can monitor pallet movements physically moved awaiting financial posting. This form shows pallet movements that are not yet financially updated.

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Disclaimer This presentation contains Microsoft Confidential Information. Microsoft may use any suggestions, comments, or other feedback that you provide for any purpose without obligation. This presentation is provided for informational and training purposes only. It represents Microsoft’s view as of the presentation date. Microsoft cannot guarantee the accuracy of any information after the presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted as a commitment on Microsoft’s part. This presentation is provided “as-is”. Microsoft Dynamics AX 2012 R3 is pre-release software under development. All dates, features, and descriptions specified are preliminary, are based on current expectations, and are subject to change at any time without notice. Sample code included in this presentation is made available AS IS.  THE ENTIRE RISK OF THE USE OR THE RESULTS FROM THE USE OF ANY SAMPLE CODE REMAINS WITH THE USER. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION. NO LICENSE (EXPRESS OR IMPLIED, BY ESTOPPEL OR OTHERWISE) TO ANY INTELLECTUAL PROPERTY RIGHTS IS GRANTED BY THIS PRESENTATION. © 2014 Microsoft Corporation. All rights reserved.

4/17/2017 2:17 PM © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION. © 2013 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.