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In Faerûn, having inventory on hand when the next caravan arrives is the difference between a profitable month and a letter of apology written in infernal ink. At the Waterdeep Trading Company, we don’t rely on wishful thinking or divination spells to keep our shelves stocked. We use Forecasting and Demand Planning in Dynamics 365 to stay ahead of the curve.

Let’s break down what that looks like when you’re supplying everything from iron spikes to cursed mirror cases.

What Is Forecasting?

Forecasting is the process of predicting future demand based on historical data, market trends, upcoming events, and customer behavior. In Dynamics 365, this can be driven by:

  • Historical sales
  • Purchase trends
  • Manual adjustments
  • External factors (festivals, raids, wars, winter wolf migration patterns)

Forecasts can be entered manually or generated using built-in models, which project expected demand over a defined horizon. These forecasts can be set at various levels:

  • By item
  • By item group
  • By customer or sales channel
  • By warehouse or region

Example: Forecast for Health Potions

What Is Demand Planning?

Demand planning takes that forecast and aligns it with inventory, procurement, and production. It helps answer:

  • Do we have enough raw materials?
  • Should we increase safety stock?
  • Should we initiate new purchase orders or production runs?

In Dynamics 365, this process feeds into Master Planning, where forecasted demand is treated like confirmed orders, generating planned supply suggestions. These can include:

  • Planned purchase orders
  • Planned transfer orders
  • Planned production orders

Why It Matters for the Waterdeep Trading Company

Greta Ironfist, our fearless founder, once said:

“If you can predict the next spike in rope demand during troll season, you don’t need luck. You need a forecast.”

In the past, too many decisions were based on guesswork. Now, by using historical trends and adjusting for regional events (like the Annual Adventurers’ Expo in Silverymoon), we’re better prepared for demand fluctuations.

Best Practices in Dynamics 365 for Forecasting

Start with historical data: Use the Forecast planning workspace or Excel templates to analyze patterns.

Segment your products: Forecast high-volume items differently from rare or seasonal goods.

Involve stakeholders: Sales, warehouse managers, and even suppliers may have insights that raw numbers miss.

Adjust forecasts regularly: Update based on shifting trends, marketing events, or monster incursions.

Use forecast reduction: Let actual sales orders reduce the forecast so you don’t double-count demand.

Putting It Into Action

Let’s say you forecast a rise in demand for Frost Resistance Gear due to early winter reports from Icewind Dale. Dynamics 365 will recommend boosting production of frost cloaks and earmuffs, generating supply plans to meet the projected demand before it becomes a problem.

These forecasts then flow into:

  • Master Planning for automated supply suggestions
  • Warehouse stocking plans
  • Cash flow planning based on expected procurement

Final Thoughts

Forecasting and demand planning in Dynamics 365 give you something better than magical foresight — real-time, data-driven decisions that protect margins and customer satisfaction.

You no longer need to pray to Mystra for inventory clarity. With the right setup, you can plan your way to profitability and avoid the scroll of backorders altogether.

Ready to build your own forecasting models and master plans?

Start your journey today with the Advanced Dungeons & Dynamics 365 guides at adnd365.com/start

You can also test it yourself in a live environment at https://public.adnd365.com

Login: npc@adnd365.com

Password: N0nPl@yC#822!

In the bustling cities of the Sword Coast—from Waterdeep’s merchant squares to the shady alleys of Luskan—one thing is clear: magic sells. Whether you’re a potion purveyor, an arcane gear supplier, or an enchanted scroll distributor, knowing which magical products bring the highest margins is critical for growth.

In this post, we’re using Dynamics 365’s Product Profitability Reports, Item Sales Margins, and Sales by Product Category to reveal the top 10 most profitable magical items currently moving through the Faerûnian economy.

How We Calculated Profitability

We pulled data from the Waterdeep Trading Company’s Dynamics 365 environment, combining:

  • Sales revenue from the Order to Cash module
  • Cost of Goods Sold (COGS) via Inventory Valuation
  • Gross Margin % based on item group (Magical Items, Potions, Scrolls, etc.)

Profit = (Sales – COGS) × Volume Sold

Top 10 Magical Products by Profit

Key Insights for Inventory & Trade Managers

  1. Healing Potions dominate—they’re cheap to produce, high in volume, and in constant demand. Set reorder thresholds in your Item Coverage settings.
  2. Arcane Saddles are low-volume, high-margin—ideal candidates for Trade Agreements with aerial suppliers and custom production runs.
  3. Scrolls offer recurring revenue—track parchment, ink, and scribing labor as bundled production cost drivers.
  4. Teleportation services represent a unique product-as-a-service model—handled as a non-stock item but linked to high-value invoicing and permit records.

Dynamics 365 Tips to Track Magical Profitability

  • Use Item Groups and Product Categories to segment magical vs. mundane goods.
  • Enable Standard Costing or FIFO for better margin clarity on alchemical and enchanted items.
  • Run the “Gross Margin by Product” report in Cost Management > Inquiries and Reports.
  • Tag products with attributes like Arcane Level, Guild Certification, or Spell School to enable dimensional profitability analysis.

What’s Next?

If you’re a trading company operating across Faerûn, your profit isn’t just about what you sell—it’s about knowing what sells best, to whom, and how consistently. With Dynamics 365, you have the tools to track product-level performance across every district, ward, and plane.

Curious what the margins are on a Flask of Faerie Fire or a Golem Core? Start building your magical profitability matrix today with our Bare Bones Templates and Fantasy Item Master demo packs at adnd365.com/start.

When Greta Ironfist founded the Waterdeep Trading Company, she knew that managing the flow of goods across the Sword Coast would be just as critical as sourcing rare herbs or distilling the finest spirits. In Faerûn, transportation isn’t just about moving cargo — it’s about surviving treacherous roads, stormy seas, and even aerial piracy.

Today, the Waterdeep Trading Company powers its shipping operations with Dynamics 365 Supply Chain Management – Transportation Management. Let’s take a closer look at how they model freight rating and routing to thrive in a world of dragons, bandits, and booming trade.

Setting Up Rating Structures: Costing Freight the Faerûnian Way

In Dynamics 365 Transportation Management, Rate Masters and Rate Charges define how costs are calculated. Waterdeep Trading Company configures their freight rates using both weight and distance (leagues traveled) — just like a merchant caravan master would charge in the Realms.

Each of the company’s preferred carriers is modeled with custom rating rules:

Example Setup in D365:

  • Rate Base Type: Weight × Distance
  • Rating Method: Rate engine calculates total cost during load planning.
  • Freight Classes: Different categories for standard goods, perishables, and magical cargo (surcharge applied).

Route Planning: Choosing the Best Way to Move Goods Across Faerûn

Using Rate Route Plans in Dynamics 365, Waterdeep Trading Company defines how goods are routed:

Each route includes transit times, distance calculations, and alternate routing if a carrier is unavailable (for instance, if pirate attacks delay a sea convoy).

Example Setup in D365:

  • Hub Types: Seaport Hub (Waterdeep Dock Ward), Airship Port Hub (Sky Dock), Caravan Hub (Trade Gate)
  • Transit Distance Tables: Leagues between key hubs calculated to automate costing.
  • Route Guides: Preferences for low-cost (sea) vs. high-speed (air).

Freight Execution: Dynamic Mode Selection in Action

When a sales order is created (say, shipping 300 lbs of moonshine to Baldur’s Gate), D365 automatically:

  1. Calculates shipping cost for each mode:
    1. IronWheels: 300 lbs × 0.1 gp × 250 leagues = 7500 gp
    1. Gryphon Air: 300 lbs × 0.16 gp × 250 leagues = 12,000 gp
    1. Sword Coast Sea Freight: 300 lbs × 0.015 gp × 250 leagues = 1125 gp
  2. Suggests the best option based on customer priorities (cost vs. speed).
  3. Books the load, assigns the carrier, and generates a bill of lading — whether that’s by wagon, gryphon, or ship!

The Benefits to Waterdeep Trading Company

  • Lower Transportation Costs: Bulk shipments sail cheaply by Sword Coast Sea Freight.
  • Faster Customer Deliveries: Urgent magical scrolls or potions ship via Gryphon Air.
  • Optimized Resource Allocation: Caravans are filled smartly, reducing deadhead miles on the Trade Way.
  • Resilient Network: Dynamic route fallback keeps the business moving even during pirate attacks or magical storms.

Why Rating and Routing Matter in Faerûn and Beyond

Transportation Management in Dynamics 365 lets Waterdeep Trading Company navigate the complexities of Faerûn’s trade like seasoned merchant princes. By building smart rating structures and flexible routing plans, they can deliver anything, anywhere — whether it’s barrels of moonshine, crates of enchanted herbs, or bundles of rare textiles.

And the best part? Greta Ironfist always knows that no matter the obstacles, Waterdeep Trading Company will deliver.

Want to master Transportation Management for your own Faerûnian trading company (or your real-world supply chain)?

Download the Advanced Dungeons & Dynamics 365 Guides at adnd365.com/start and embark on your own logistics adventure!