Top Features 

1. Automate procure-to-pay tasks with supplier communications agent 

With this feature, Microsoft introduces an AI‑driven Supplier Communications Agent that automates repetitive communication within the procure‑to‑pay process. Examples include sending and following up on supplier inquiries, confirmations, and documentation—directly from Dynamics 365 Supply Chain Management. 

The agent supports sharing information and attachments (such as Excel files) and ensures that communication is centrally and contextually recorded. As a result, procurement, planning, and suppliers always work with the same up‑to‑date information, while manual follow‑up is significantly reduced. 

2. Enhance warehouse efficiency with dynamic item placement 

This enhancement enables dynamic positioning of items in the warehouse based on usage, turnover rate, and operational context. Instead of fixed locations, the system can propose smarter inventory distribution, reducing walking distances and improving picking efficiency. 

This helps organizations better handle seasonal peaks, fluctuating demand, and changing assortments—without requiring manual warehouse reconfiguration. The result is a more flexible and future‑proof warehouse layout. 

3. Enhance picking speed using spatial location intelligence 

With spatial location intelligence, the physical layout of the warehouse is actively considered in pick optimization. The system accounts for distances, zones, and routes to determine smarter pick sequences and avoid unnecessary movement. 

For warehouse employees, this means less search time and shorter walking routes; for the organization, it results in higher throughput, fewer errors, and better utilization of available capacity. 

4. Automate dynamic work classification with Power FX 

With this feature, organizations can dynamically automate work classifications using Power FX rules. Work is automatically assigned and prioritized based on predefined logic—without custom code. 

This makes it easier to adjust processes as conditions change, such as peak workloads, resource availability, or order priority. By using Power FX, configurations remain transparent, maintainable, and quick to adapt. 

What’s in it for you? 

Procurement & Supply Chain Managers 

• The combination of AI‑driven supplier communication and automated work logic reduces operational pressure on teams. 
• Less manual follow‑up, greater predictability in the procure‑to‑pay process, and improved supplier collaboration lead to faster lead times and fewer disruptions. 

Warehouse managers & operations leads 

• Smarter inventory placement and route optimization immediately increase picking speed and shop‑floor productivity. 
• At the same time, dynamic work classification enables faster adjustments without complex reconfiguration or IT dependency. 

 Application Administrators & Functional Administrators 

• Power FX‑driven logic and out‑of‑the‑box AI functionality reduce the need for custom development. 
• Processes remain easier to manage, changes can be implemented more quickly, and upgrades are simpler to support. 

Why act now? 

This release wave lays a strong foundation for further scaling and automation within Supply Chain Management. By gaining insight into these capabilities now and defining initial scenarios, organizations can deliberately choose where to realize value quickly. 

These improvements are most effective when embedded into processes, such as clear procurement agreements, warehouse layout decisions, and decision rules. By preparing for this now, organizations can maximize the value of 2026 Wave 1, not only technically, but also operationally.