How do I create a new warehouse in D365?

Creating a new warehouse in Dynamics 365 Supply Chain Management involves defining its fundamental details and then configuring its physical layout and operational parameters to support efficient inventory management.

Initial Warehouse Setup

Begin by defining the core properties of your new warehouse record within D365. This establishes the basic identity and association of the warehouse.

Steps to Create the Warehouse Record

1. Navigate to Inventory management > Setup > Inventory breakdown > Warehouses.
2. On the Action Pane, select New to create a new warehouse record.
3. Enter a unique Warehouse ID (e.g., "WH001") and a descriptive Name (e.g., "Main Distribution Center").
4. Specify the Site to which this warehouse belongs. A site represents a geographical location or business unit, and each warehouse must be associated with one.
5. Fill in other relevant details as required, such as the warehouse Type (e.g., Default, Quarantine, Transit) and its physical address.
6. Select Save to commit the new warehouse record.

Key Warehouse Settings

The table below highlights crucial settings when creating a new warehouse:

Setting	Description
Warehouse	A unique alphanumeric identifier for the warehouse.
Name	A descriptive, user-friendly name for the warehouse.
Site	The operational site that the warehouse is associated with.
Type	Categorizes the warehouse's function (e.g., standard, transit, quarantine).
Address	The physical location details of the warehouse.

For more information on general warehouse setup, refer to Microsoft's documentation on Create a warehouse.

Configuring Warehouse Management Functionality

If you intend to use advanced warehouse management processes, such as directed put-away and picking, inventory reservation, or mobile device integration, you must enable your new warehouse for WMS.

Enabling Warehouse Management Processes

1. On the Warehouses page, ensure your newly created warehouse is selected.
2. Expand the Warehouse FastTab.
3. Check the Use warehouse management processes option.
4. Select Save.

Enabling this option unlocks a wide range of advanced features essential for modern warehouse operations.

Setting Up Warehouse Locations and Layout

After creating the warehouse record and enabling it for advanced processes, the next critical step is to define its physical layout by creating storage locations. Locations are fundamental for accurate inventory tracking, movement, and optimization.

Generating Locations Using the Location Wizard

The Location Wizard is a powerful tool that streamlines the creation of multiple storage locations within your warehouse based on predefined structures and formats.

1. On the Warehouses page, with your newly created warehouse selected, navigate to the Action Pane.
2. Select Warehouse, and then within the "Setup" group of the ribbon, select Location Wizard.
3. The Location Wizard dialog box will open. Select Next to proceed.
4. The wizard will guide you through defining location dimensions (e.g., aisle, rack, shelf, bin). When prompted to select location types to generate, carefully review the options. Ensure you deselect the Outbound docks option if you do not wish to generate these locations at this time.
5. Similarly, deselect the Bulk locations option if you are not ready to define these or prefer to create them manually later.
6. Continue selecting Next through the subsequent steps of the wizard. Here, you will define the numbering format for your locations (e.g., starting and ending numbers for aisles, racks, shelves, and bins). Customize these settings to match your desired warehouse layout.
7. Once you have configured all necessary parameters, select Finish to generate the locations according to your specifications.
8. Close the wizard page.
9. To ensure the newly generated locations are immediately visible and correctly updated in the system, it's recommended to refresh the current page.

Practical Insight: While the Location Wizard is efficient for bulk creation, you can always refine or manually create individual locations later by navigating to Warehouse management > Setup > Warehouse > Locations.

Important Location Considerations

• Location Naming Convention: Implement a clear, logical, and consistent naming structure (e.g., Aisle-Rack-Shelf-Bin or A01-R01-S01-B01). This improves navigation, reduces errors, and aids in training.
• Location Profiles: Assign location profiles to categorize locations based on their physical characteristics and operational rules (e.g., locations for pallet storage, case picking, or small parts). This is crucial for guiding put-away and picking strategies.
• Location Types: Define specific types for various functions within the warehouse, such as Receiving, Shipping, Picking, Staging, and Packing.
• Zone Groups and Zones: Organize locations into zone groups and zones to optimize picking strategies, manage inventory efficiently, and control material flow.

For detailed guidance on setting up locations, refer to Microsoft's documentation on Set up locations in a warehouse.

Verifying Warehouse Setup

After creating your warehouse and configuring its locations, it's crucial to perform verification steps to ensure everything is set up correctly and functions as expected.

1. Navigate to Warehouse management > Setup > Warehouse > Locations and filter by your new warehouse to review all generated and manually created locations.
2. Perform a simple test by creating a purchase order or a transfer order to simulate an inbound process to the new warehouse.
3. Execute a test put-away operation to confirm that items can be received and stored correctly into the designated locations.