A Guide to The Dynamics 365 BC vs F&SCM Dilemma

Are you confused about whether to choose Dynamics 365 Business Central (BC) or Dynamics 365 Finance & Supply Chain Management (F&SCM) for your business resource planning requirements? Don’t worry, you’re not on your own.

Today, we are going to explore these two outstanding solutions, to help you discover the best fit for your unique business requirements. So get your pen and paper and take some notes! 

Dynamics 365 BC Vs. F&SCM: What Sets Them Apart? 

BC is the perfect solution for small to medium-sized enterprises (confirmed by Forbes Advisor). It gives you a host of features— including finance management, sales, services, and supply chain management—all in one comprehensive package. F&SCM, on the other hand, is designed for larger companies seeking advanced financial and supply chain processes. It provides superior features such as management of global operations, production planning, and inventory optimization. 

Key Factors to Consider Before Deciding on Your Solution 

Investment/Commitment Requirements (Microsoft’s 1/3 Rule)   

Microsoft’s 1/3 rule, which includes time, price and is a convenient guideline to determine if your business requires the robustness of F&SCM or can maximize the flexibility of BC. However, it is critical to realize that every business is unique and this rule might not always apply. For professional guidance, don’t hesitate to consult Microsoft’s Solutions partner like Technology Management Concepts (TMC). 

Price and Implementation Time 

When it comes to cost and implementation time, BC emerges as the more cost-effective and time-efficient option. BC implementations typically cost around 30% of what F&SCM implementations entail, making it a more budget-friendly choice for small to medium enterprises.  

Moreover, BC implementations take approximately one-third of the time required for F&SCM implementations. While BC implementations typically take between 6 months to 1 year to complete, F&SCM implementations can stretch over 2 years. Additionally, many F&SCM implementations never get fully live because they are always being “configured”. 

Team Engagement 

BC implementations require significantly fewer internal resources compared to F&SCM. For BC, you might need around 1/3 of the client’s internal team members for the implementation project compared to F&SCM. For instance, while you may need 3 internal team members for BC, you would require 9 for F&SCM. 

Functionality Requirements 

Your Business Needs 

Do you run operations in different countries with varying financial regulations? Both BC and F&SCM cater to localization. However, F&SCM might be a better choice if you need to manage more complicated regions. Similarly, evaluate your company’s structure. Do you need a single-tenant solution like F&SCM to manage all your sites or could you benefit from a multi-tenant solution like BC with separate instances for each country? 

User and Transaction Volume 

It’s vital to evaluate the maximum transaction volume each solution can support and whether it satisfies your needs. Also, if your company has a significant number of users, you may want to consider F&SCM for its scalability. 

Unique Functionalities 

If your business needs particular features such as process manufacturing, transportation management, intercompany stock transfers, or quality management, F&SCM might be the more fitting choice. 

Making The Call: BC or F&SCM? 

We strongly advise scheduling demos of both Dynamics 365 BC and F&SCM as well as conducting a proper Business Process Review to understand your company’s workflows. Request proposals from vendors and always value the benefit of thorough research. Importantly, make a decision that aligns with your business needs, not just what everyone else is implementing. 

Selecting between Dynamics 365 BC and F&SCM isn’t a small decision. It requires careful thought. Remember, you’re not left to navigate this on your own. Microsoft solution partners like TMC are by your side, ready to assist you throughout this process.