Product information is the foundation of every successful supply chain and commerce operation. Whether you are managing retail items, manufacturing components, or service offerings, accurate and structured product data ensures smooth procurement, inventory control, production, sales, and reporting.
Product Information Management (PIM) in Dynamics 365 Supply Chain Management (SCM) provides a centralized framework to define, manage, and distribute product data consistently across legal entities, channels, and systems.
This article explains the core concepts, practical setup steps, and best practices to help you effectively manage your products.
Why Product Information Management Matters
A well-structured product database helps organizations:
- Maintain consistent product definitions
- Reduce data duplication
- Improve reporting accuracy
- Simplify variant management (size, color, style, etc.)
- Enable faster product launches
- Synchronize products across systems using Microsoft Dataverse
In short, product information is the backbone of your entire supply chain and commerce ecosystem.
Understanding Product Definition
At the most basic level, every product must have:
- Product Number
- Product Name
- Description
However, in real business scenarios, this is not enough. A complete product definition includes multiple attributes and configurations to support operational and commercial needs.
Core Data Required for Product Setup
When creating a product in Dynamics 365, you should define the following:
Basic Classification
- Product Type – Item or Service
- Product Subtype – Distinct product or Product master
Variant & Configuration Setup
- Product dimensions and dimension groups
- Product nomenclature rules
- Configuration models (if required)
Categorization
- One or more procurement or retail categories
- Category-specific attributes
Supporting Information
- Product images
- Attachments (manuals, specifications, certificates)
- Units of measure and conversions
- Translations for multilingual environments
Practical Setup Walkthrough
Here’s a simple step-by-step process you can follow:
Step 1 – Create Product
Navigate to:
Product information management > Products > Released products > New
Enter:
- Product number
- Name
- Type
- Subtype
Step 2 – Assign Dimension Group
Choose a dimension group to define if the product uses:
- Color
- Size
- Style
- Configuration
Example:
- T-Shirt → Color + Size
- Laptop → Configuration
- Spare part → No dimensions
Step 3 – Assign Categories & Attributes
- Link product to procurement/retail category
- Add attributes (Brand, Material, Weight, etc.)
This improves:
- Searchability
- Filtering
- Reporting
Step 4 – Add Units of Measure
Define:
- Inventory unit
- Purchase unit
- Sales unit
- Conversions
Example:
1 Box = 10 Pieces
Step 5 – Upload Images & Documents
Add:
- Product photos
- Spec sheets
- Certifications
This helps sales teams and e-commerce platforms.
Product Masters vs Product Variants
Understanding this concept is critical.
Product Master
A template product that defines shared characteristics and rules.
Example:
T-Shirt
Product Variants
Actual sellable versions generated from dimensions.
Example:
T-Shirt Red Small
T-Shirt Red Medium
T-Shirt Blue Large
Why Use Product Masters?
They help you:
- Avoid creating hundreds of individual items manually
- Maintain consistent pricing and rules
- Simplify planning and forecasting
- Improve inventory tracking
Product Dimensions Explained
Dynamics 365 supports four standard dimensions:
| Dimension | Example Use Case |
|---|---|
| Color | Apparel |
| Size | Shoes, garments |
| Style | Design variation |
| Configuration | Custom manufacturing |
These dimensions allow:
- Variant creation
- Stock tracking
- Filtering in sales orders
- Warehouse management
Configuration Technologies
Depending on business complexity, Three (03) type configuration methods are available.
1. Predefined Variants (Dimension-Based)
Best for:
- Retail
- Fashion
- Standard manufacturing
Variants are created using combinations like:
Color + Size + Style
Each combination becomes a unique item.
Example:
Red + Medium + Slim Fit
Simple, fast, and easy to maintain.
2. Dimension-Based Configuration (Manufacturing)
Used when:
- Bills of Materials (BOM) vary by configuration
The system uses:
- One global BOM
- Only relevant components based on selected configuration
Benefits:
- Reduced BOM maintenance
- Faster production planning
3. Constraint-Based Configuration (Advanced)
Best for:
- Engineer-to-order
- Custom products
- Complex manufacturing
Uses:
- Product configuration models
- Rules and constraints
- Attribute dependencies
Example:
If CPU = i7 → RAM must be ≥ 16GB
Benefits:
- Eliminates invalid combinations
- Reduces errors
- Supports complex product logic
Integrating with Microsoft Dataverse
Dynamics 365 SCM allows you to:
- Share product data with other systems
- Synchronize with Commerce
- Connect with Power Platform apps
This ensures:
- Single source of truth
- Centralized product management
- Seamless integrations
