Why Food & Beverage Distributors Are Turning to Business Central

Food and beverage (F&B) distributors face tight margins, volatile demand, and stringent regulatory compliance. Outdated Enterprise Resource Planning (ERP) systems and manual processes hinder growth and profitability; yet, many distributors hesitate to undertake a full ERP transformation due to concerns about cost, complexity, or operational disruption.

That’s why moving to Microsoft Dynamics 365 Business Central is worth serious consideration.

Built for growing mid-market companies, Business Central provides a cloud-based, scalable solution that’s flexible enough to meet the specific needs of F&B distribution without requiring a large IT team or massive custom development.

Here are some of the reasons why food and beverage distributors are making the switch.

End-to-end visibility results in smarter, faster decisions

In the F&B sector, being able to act quickly based on real-time information can mean the difference between profit and loss. With Business Central, F&B distributors gain a centralized platform that connects inventory, sales, purchasing, finance, warehousing, and even production. This eliminates silos, improves data accuracy, and empowers decision-makers at every level.

For example, sales teams can instantly view available inventory and projected demand; finance can track true landed costs and margin performance by item, customer, or region; and operations can identify potential supply chain bottlenecks before they become issues. It’s all about driving proactive—not reactive—actions.

Inventory and lot management keep you in control

Spoilage, stockouts, and overstocking are common threats for F&B distributors. Business Central helps manage these risks with powerful inventory capabilities tailored to the needs of perishable goods. Features include:

• Lot tracking and traceability, so you can respond quickly to recalls or quality concerns
• Expiry date tracking and FIFO picking to reduce waste
• Advanced inventory forecasting to maintain optimal stock levels
• Real-time location management to keep fast-moving goods flowing through your warehouse efficiently

These tools help distributors maximize shelf life, minimize carrying costs, and maintain customer satisfaction.

Built-in compliance tools for a heavily regulated industry

Food safety and traceability regulations continue to tighten. Whether it’s the FDA’s FSMA rules or customer-imposed quality standards, Business Central equips distributors with the tools to stay compliant and audit-ready. The system can automatically enforce rules for product handling, manage documentation requirements, and maintain a complete history of inventory movements.

Plus, with role-based security and Microsoft’s enterprise-grade cloud infrastructure, Business Central helps safeguard sensitive data and meet industry-specific compliance standards, all while maintaining usability.

Better forecasting and demand planning with embedded AI

Demand in the food and beverage sector can be unpredictable due to seasonality, promotions, consumer trends, and weather conditions. Business Central helps distributors move beyond spreadsheets with integrated forecasting tools powered by artificial intelligence and machine learning.

These tools analyze past sales patterns, identify trends, and project future demand at the item or category level. The result? Smarter purchasing decisions, fewer rush orders, and better alignment between inventory and customer demand.

Seamless integration with EDI, eCommerce, and POS

Many distributors need to connect with a growing number of external systems—from supplier EDI networks and eCommerce storefronts to point-of-sale systems at customer locations. Business Central’s open architecture and rich API set make it easy to integrate with external platforms, reducing the need for duplicate data entry and improving order accuracy.

In addition, Microsoft’s AppSource includes industry-specific solutions that extend Business Central with prebuilt EDI connectors, third-party logistics (3PL) integrations, and more, accelerating implementation and improving ROI.

Mobility and remote access for a distributed workforce

Today’s workforce isn’t tied to a desk. Warehouse teams, delivery drivers, remote sales representatives, and field service personnel all require access to accurate and up-to-date information. Because Business Central is a fully cloud-based solution, users can securely access the system anytime, anywhere, from any device.

Distributors can enable mobile workflows for everything from inventory picking to route management to on-site customer service. That flexibility keeps everyone connected and accountable, regardless of where the work is performed.

Rapid implementation and lower Total Cost of Ownership

F&B distributors don’t have time for a two-year ERP implementation. Business Central offers rapid deployment options, with many distributors going live in a matter of months. And because it’s hosted in the Microsoft Cloud, there’s no need to manage infrastructure, patches, or upgrades. That reduces both IT overhead and risk.

Thanks to its modular architecture, distributors can also phase in functionality over time, starting with finance and inventory, for example, and adding warehouse management, service, or manufacturing later. This “start simple, scale fast” approach aligns with the reality of mid-market distribution operations.

In our blog, Economic Impact of Business Central in the Cloud: A View from Forrester, we discuss the tangible economic benefits of migrating to Business Central.

A future-proof platform built on Microsoft technology

Microsoft continues to invest heavily in Business Central and the broader Dynamics 365 ecosystem, including innovations in AI using Microsoft Copilot, automation, analytics, and native integration with Microsoft 365 and the Power Platform. As distributors grow or expand into new lines of business, Business Central provides a modern, scalable foundation that’s ready to evolve with them.

From Power BI for real-time reporting to Power Automate for workflow orchestration, and Power Apps for custom mobile solutions, F&B distributors can extend their ERP platform without requiring heavy customization or development.

Find out more

Microsoft Dynamics 365 Business Central provides food and beverage distributors with the tools to tackle industry challenges with agility, insight, and confidence, without the high cost or complexity of a traditional ERP.

Contact the Business Central experts at ArcherPoint by Cherry Bekaert to learn how we can help your business thrive with sustainable growth, greater operational control, and a more resilient future with Business Central.

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