Manufacturers live and die by their ability to manage production effectively. The best strategy, the leanest supply chain, or the most modern machines don’t matter if the execution layer on the shop floor is fragmented. That’s why more Business Central customers are looking at Manufacturing Execution Systems (MES) to close the gap between ERP and production.
For a growing manufacturer, Business Central provides a solid backbone for finance, sales, purchasing, and inventory. But when it comes to orchestrating the real-time world of machines, operators, and work orders, Business Central alone is not enough. This is where an MES comes in.
In this article, we’ll look at what an MES for Business Central really is, how it complements the ERP, and what to consider when evaluating MES options in Microsoft’s ecosystem.
What is an MES in the Business Central context?
An MES is software designed to track, manage, and optimize manufacturing operations on the shop floor. While ERP systems like Business Central focus on higher-level planning, orders, resources, costing, and schedules, an MES handles the details of execution:
- Work order dispatching: sending tasks and instructions to machines or operators.
- Data collection: capturing production counts, machine performance, quality checks, and downtime.
- Traceability: recording material usage and lot numbers for compliance.
- Visibility: showing supervisors what’s happening in real time across lines, cells, or plants.
Think of Business Central as the brain setting direction and managing resources, and the MES as the nervous system transmitting signals to the limbs and feeding back sensory information. Without the MES, Business Central knows what should happen in theory, but not what is happening on the shop floor right now. When it comes to selecting an MES for Business Central, it is critical to consider the fit between the solutions and understand why and how you’ll use each of them. For more information on how your ERP and MES solutions interact, check out our blog on the key differences between them.
Why Business Central manufacturers turn to MES
A mid-market manufacturer running Business Central often starts with manual production reporting. Operators fill out spreadsheets or paper travelers, which someone later keys into the ERP. It works at first, but cracks appear quickly:
- Delayed data: Supervisors don’t see issues until the next day, long after a machine went down or scrap spiked.
- Inconsistent reporting: Each shift may log information differently, leading to errors in costing or scheduling.
- Lack of accountability: Without a system of record, it’s hard to trace which materials went into which lot.
- Inefficient scheduling: Planners in Business Central don’t have visibility into real-time capacity, so schedules are based on assumptions.
An MES solves these problems by automating data capture and creating a live feedback loop between the shop floor and Business Central. With MES, a production manager knows within minutes if a job is behind, a machine is idle, or materials are missing. Finance gets more accurate actuals. Quality can prove compliance with detailed records.
The Microsoft ecosystem advantage
One reason MES adoption is accelerating among Business Central users is the strength of the Microsoft ecosystem. Business Central already integrates seamlessly with Office 365, Power BI, and Power Platform. Manufacturers want their MES to fit the same model: connected, modular, and future-proof.
In practice, that means:
- Integrated integration: A native connector or API layer that syncs work orders, BOMs, and routings from Business Central into the MES without custom middleware.
- Data model alignment: Using the same item numbers, production orders, and cost structures, so information flows without duplication.
- Analytics: Feeding real-time MES data into Power BI for dashboards that blend financial and operational KPIs.
- Extensibility: Leveraging Power Automate to trigger workflows (for example, sending an alert when machine downtime exceeds 30 minutes).
Choosing an MES outside this ecosystem can create costly integration projects and ongoing maintenance headaches.
Key factors to consider when choosing an MES for Business Central
Not all MES systems are created equal. Some are designed for massive global manufacturers and bring complexity and cost that mid-sized companies cannot absorb. Others are too light, little more than digital log sheets. Finding the right fit comes down to a few critical factors:
- Depth of integration with Business Central
The first question should always be: how does this MES integrate with BC? A well-aligned solution should pull master data directly from Business Central, update production orders in real time, and push actuals back without manual steps. Avoid vendors who talk vaguely about “ERP connectivity” but rely on custom development for every link.
- Fit for your production processes
Every factory has its nuances. Discrete manufacturers care about serial tracking and assembly line performance. Process manufacturers need batch traceability and recipe management. Project-based shops may focus on job costing. The MES you select should map naturally to your production type, rather than forcing you to conform to a generic template.
- Ease of use on the shop floor
Operators will be the primary users of your MES, and adoption hinges on usability. Look for simple touchscreen interfaces, support for multiple languages, and minimal training time. If the system feels like a burden, data quality will suffer.
- Real-time visibility and alerts
One of the MES’s biggest promises is visibility. Confirm that the solution provides dashboards for supervisors and planners, and that it can issue real-time alerts when performance drops. The faster you can detect issues, the more value you get from the system.
- Scalability and deployment model
Cloud-based MES solutions aligned with Microsoft’s SaaS approach are often easier to deploy and maintain. Still, some manufacturers require hybrid or on-premises options due to machine connectivity or regulatory needs. Ensure the vendor can grow with you-adding plants, lines, or users without forcing a rip-and-replace.
- Vendor expertise in Business Central
Finally, don’t underestimate the value of domain expertise. A vendor who lives in the Dynamics ecosystem, understands Business Central’s manufacturing module, and has references in your industry will save you time and risk.
Common pitfalls to avoid when selecting an MES for Business Central
Many MES projects stall or underdeliver because the selection process skipped key considerations. Watch out for these pitfalls:
- Over-customization: Building a heavily customized MES may solve today’s issues but creates technical debt. Choose configurable over custom whenever possible.
- Ignoring change management: Even the best MES fails without buy-in. Engage operators, supervisors, and IT early. Pilot on one line before scaling.
- Focusing only on cost: Cheaper solutions that don’t integrate tightly with Business Central can end up more expensive in the long run.
- Neglecting reporting needs: Ask specifically how the MES will handle compliance, quality audits, and customer traceability demands.
The business impact of a well-chosen MES
When done right, an MES for Business Central delivers measurable benefits:
- Shorter lead times by reducing unplanned downtime and improving schedule adherence.
- Lower costs through more accurate labour and material reporting.
- Improved quality by catching deviations earlier.
- Better decisions with real-time data feeding into Business Central and Power BI.
- Happier customers thanks to reliable delivery and traceable production.
For many manufacturers, the MES project is the missing link that allows them to scale without adding disproportionate overhead.
How to start your MES for Business Central journey
If you’re considering MES for Business Central, begin with a structured approach:
- Map your current pain points: Are delays, scrap, or reporting errors the biggest issue?
- Define must-have features: Make a short list (e.g., barcode scanning, machine connectivity, lot traceability).
- Evaluate vendors in the Dynamics ecosystem: Look for those with proven Business Central integrations.
- Start small: Pilot the system on one product line or work centre.
- Plan for scale: Ensure the vendor can expand across sites, regions, or divisions as you grow.
For Business Central customers, an MES isn’t just another software purchase. It’s the bridge between the planning world of ERP and the execution reality of the shop floor. Choosing the right one can transform operations, bringing real-time control, tighter integration, and a foundation for continuous improvement.
Manufacturers that connect MES and Business Central position themselves to compete with larger players, using Microsoft’s ecosystem as a force multiplier. The investment isn’t just about technology; it’s about building a smarter, more agile factory.