With major updates, Microsoft’s Dynamics 365 SCM Wave 1 2025 has officially launched, promising to improve supplier collaboration, planning accuracy, and operational agility.
Packed with cutting-edge features that include automation, AI-powered insights, and usability enhancements, this update empowers companies to update their supply chain infrastructure in a scalable and effective manner.
These new features, in particular, focus on improving procurement, demand planning, inventory management, and warehouse operations as part of the larger Microsoft Dynamics 365: 2025 release wave 1 plan, which spans from April to September 2025.
We’ve previously explored what’s new in D365 Field Service Release Wave 1 2025 and Dynamics 365 Sales in 2025 Release Wave 1. We also dive into Microsoft Teams 2025 Updates and What’s New in Microsoft SharePoint 2025 to give you a complete view of the Microsoft ecosystem upgrades.
Today, we will discuss the Dynamics 365 SCM 2025 updates.
So, what is in it for you? We will cover all the major updates in this article.
Release Schedule and Deployment
According to D365 SCM 2025 release notes, there are two significant update waves every year. Following a methodical rollout, Wave 1 2025 went into general availability on April 1:
- Version 10.0.43: Major release with new functionality
- Version 10.0.44: Minor update focused on stability and preview features (released June 2025)
Customers can only pause between updates for one consecutive pause, just like in previous waves. This highlights Microsoft’s goal of having users install at least two updates per year so they can take advantage of ongoing innovation and increased security.
Notable Changes for Microsoft Dynamics 365 Supply Chain: New Features
By combining intelligence, automation, and analytics, Supply Chain Management Dynamics 365 enhancements promote autonomy while enhancing organisational flexibility and productivity.
Through the automation of supplier communications, the use of AI in manufacturing to match production data with real processes, and the improvement of demand planning accuracy through cell-level explainability and generative insights, this update improves operational efficiency.
As features are ready for release, customers can find the most recent updates in the Dynamics 365 and Microsoft release plan for the first wave of the 2025 release. What to anticipate from the release is as follows:
1. Demand Planning: Intelligence & Seasonality
The transformation of demand planning into a more sophisticated, pattern-aware system is one of the key advancements in D365 Supply Chain 2025. Improved features consist of:
- Demand Allocation and Assortment Planning: More precise management of demand distribution among goods and geographical areas.
- Seasonality Pattern Detection: To improve forecast reliability, this system automatically detects cyclical trends.
- Forecast Time Freeze Periods: Prevents recalculation of forecasts during planning windows that are locked.
- External Input Signal Support: Multiple external signals are integrated for improved prediction models through the use of external input signal support.
These features support the platform’s emphasis on precise forecasting by providing planners with the necessary resources to make informed decisions based on data.
2. Source-to-Pay Enhancements
The following new tools from the Dynamics 365 Supply Chain Management Wave 1 2025 list will be invaluable to procurement teams:
Contract Lifecycle Management (CLM) Integration
Microsoft presents an out-of-the-box CLM integration that facilitates:
- Direct ties to legal documents (such as NDAs) and purchase agreements.
- Flexibility for different kinds of contracts.
- Streamlined sourcing and compliance processes.
This integration streamlines the entire procurement process and is architecturally similar to the Manufacturing Execution System (MES) model used in production environments.
Supplier Communication Agent (Preview in 10.0.44)
This AI-powered assistant handles supplier emails automatically:
- Reads and replies to supplier PO messages.
- Works in a sandbox environment, which Tier 1 does not currently support.
- Future releases are anticipated to go beyond purchase orders.
A significant step towards autonomous supply chain collaboration, the agent enhances procurement responsiveness and reduces manual workload.
3. Inventory to Delivery: Traceability & Quality Redefined
The Dynamics 365 Wave 1 2025 feature offers significant innovation for manufacturers and warehouse managers:
Advanced Quality Management
Quality control is essential as regulations become more stringent and products become more complex. This modification:
- Digitises quality testing from start to finish.
- Improves the optimisation of test strategies.
- Supports feedback loops and regulatory audits.
Its native flexibility and reduced reliance on external quality tools make it ideal for high-precision industries, such as aerospace and medical devices.
Supply Chain Traceability Add-In (Preview)
The updated add-in offers the following benefits and is now simpler to install and configure (no Entra ID required):
- Support for reverse manufacturing (disassembly tracking).
- Tighter inventory control through tracked component policies.
- Enhanced processes for single-output manufacturing.
The Analyse Warehouse Operations business process includes this evolution, which makes crucial production steps more visible and transparent.
With IoT integration, Dynamics 365 Supply Chain also enables real-time inventory tracking, providing instant visibility across warehouses and production lines.
4. Warehouse Mobile App – Version 4
The warehouse app has been completely redesigned to introduce:
- Faster and safer user interface.
- Customisable colour and sound themes are new UX features.
- Coexistence of versions 3 and 4 permits a gradual migration.
With a public preview currently underway and general availability expected by late summer 2025, the app provides enhanced support for frontline workers and aligns with Microsoft’s mobile-first strategy.
5. AI, Automation, and Usability Innovations
Beyond modules, Microsoft’s most recent release features minor yet significant enhancements to analytics, AI, and usability:
- AI in Planning Optimisation: Improved algorithms for vendor lead times and replenishment planning.
- Dashboards for Performance Analytics: New dashboards for inventory turnover and procurement efficiency.
- Usability Enhancements: Improved in-grid editing, more intelligent form designs, and easier navigation between Supply Chain modules are examples of usability improvements.
These updates highlight Microsoft’s objective of making the supply chain management suite more intelligent and user-friendly, even in complex supply chain scenarios.
Conclusion
The Dynamics 365 SCM Wave 1 2025 feature list represents a strategic leap forward in supply chain transformation. With AI-driven planning, seamless supplier collaboration, and enhanced traceability, this update delivers smarter, more adaptive operations from procurement to delivery. These features are not just incremental improvements—they are designed to help businesses operate with greater accuracy, speed, and autonomy.
Companies seeking Dynamics 365 Supply Chain Management implementation or expanding these capabilities within their Dynamics 365 environment can rely on DHRP for tailored solutions and expert guidance.
As a trusted Microsoft partner, DHRP ensures your business not only keeps pace with the latest updates but fully leverages them to stay competitive and future-ready.
FAQs
Dynamics 365 SCM 2025 introduces AI-powered demand planning, enhanced supplier collaboration tools, contract lifecycle integration, advanced warehouse app features, and quality traceability. These innovations focus on improving operational agility, automation, and visibility across the entire supply chain.
Wave 1 2025 enhances supply chain efficiency in D365 by automating supplier communication, refining demand planning with seasonality intelligence, strengthening quality controls, and introducing a more intuitive warehouse mobile app—all aimed at boosting responsiveness and data-driven decision-making.
Dynamics 365 SCM Wave 1 2025 was released in April, beginning with version 10.0.43. A minor update, version 10.0.44, followed in June, offering preview features and stability enhancements as part of Microsoft’s biannual update schedule.
