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Hardware realities Business Central has to handle
Engineering changes
Production BOM versions with starting dates let engineering release a new revision without breaking open orders on the old one.
Outsourced assembly
Subcontracting sends components to a contract manufacturer and receives finished units back, with the service cost on the purchase side.
Serial and lot records
Item tracking records serial numbers on every unit shipped, which support and warranty teams depend on later.
Foreign currency buying
Purchases priced in other currencies revalue against the dollar, so component costs stay honest.
Where the product data should live
Most hardware companies already keep part numbers and BOMs in a product lifecycle management or CAD data tool. The mistake we see most often is treating Business Central as a second place to edit engineering data. Engineering should own the design BOM in its own tool; Business Central should receive the released version, with cost, sourcing and planning data added by operations.
That split needs an agreed handoff: who releases a revision, when it becomes effective, and what happens to open purchase orders for parts that are being replaced. We work out the rules with engineering and operations together, then decide whether a manual import, a Power Automate flow or a proper integration is justified by your change volume.
Setting up a contract-manufactured product
- 1
Model the item
Finished product, sub-assemblies and consigned components get their own item cards and tracking rules.
- 2
Define the subcontract
A routing step or subcontracting order sends material to the contract manufacturer and buys back the assembly service.
- 3
Track stock at the partner
A separate location shows components sitting at the contract manufacturer, so planning counts them.
- 4
Receive and serialize
Finished units arrive with serial numbers recorded, ready for shipment and warranty tracking.
- 5
Review cost
Standard or average cost is compared against actual, and variances are reviewed monthly.
San Jose companies we typically help
- ✓Equipment makers selling to semiconductor fabs, with long lead times and field service
- ✓Electronic component distributors with large catalogs and customer-specific pricing
- ✓Networking and hardware startups moving from spreadsheets and QuickBooks
- ✓Test and measurement firms selling units with calibration services
- ✓Clean-tech and battery makers building pilot production lines
- ✓Engineering services firms billing projects alongside a small product line
San Jose buyers ask
Can Business Central manage engineering change control?
It handles the ERP side well through production BOM versions and routing versions with effective dates. Formal change requests, approvals and CAD files usually stay in your engineering or PLM tool. We connect the two so released revisions reach Business Central cleanly.
We outsource all assembly. Do we still need manufacturing features?
Usually yes. Even without a factory, you need BOMs to plan components, subcontracting to buy assembly services, and inventory at the contract manufacturer's site. Some companies with very simple kits manage with assembly orders instead, which is lighter.
Is Business Central strong enough for a fast-growing hardware company?
For many small and mid-sized hardware firms, yes. Very large, multi-plant operations sometimes move to Dynamics 365 Supply Chain Management instead. We discuss where you expect to be in a few years before recommending either.
Do you visit San Jose in person?
When a visit helps, and only by agreement. Our office is in Phoenix and most work happens on video, which suits engineers who prefer shared screens anyway. A site day for a warehouse or stockroom review can be added to the scope.
Can we keep serial numbers for warranty and service?
Yes. Item tracking records serials on receipt and shipment, and item tracing shows which customer received which unit. Service contracts and field service can build on that data if you add them later.
Talk to us about your project.
Tell us what you run today and what has to change. A senior consultant replies with a written next step.