On April 7, 2026, GN Store Nord flipped the switch on a brand-new warehouse system at its distribution center in Shakopee, Minnesota. Over the next three days, the company processed more than 2,100 e-commerce orders. By day four, same-day shipping was back—a benchmark the Danish technology conglomerate could not reliably hit under its previous outsourced warehousing model. The secret? A deliberate shift away from a third-party logistics provider (3PL) and a strategic bet on Microsoft Dynamics 365 Warehouse Only Mode.

Breaking Free from the Black Box

For years, GN’s Enterprise and Gaming divisions outsourced North American fulfillment to a 3PL. The arrangement looked efficient on paper, but inside the business, frustration brewed. Order management teams had no direct window into the warehouse. When a priority change was needed, someone had to pick up the phone. Cancellations required manual intervention. Even basic inventory checks depended on spreadsheets that traveled by email between GN and its provider.

“Our leadership team wanted to regain ownership of the supply chain and increase operational control,” said Alexander Kyhl Schønberg, WMS Lead within GN’s Digital, Data & IT function. The 3PL’s opaque processes led to inventory discrepancies, product disappearances, and an inability to guarantee same-day shipping. Premium outsourcing costs only added to the pressure.

GN decided to bring warehousing back in-house, but not with a conventional monolithic ERP deployment. It needed a platform that could serve multiple divisions—each potentially running different back-end systems—from a single distribution center.

The Modular Warehouse: How Warehouse Only Mode Works

Warehouse Only Mode is a deployment configuration in Microsoft Dynamics 365 Supply Chain Management that decouples warehouse execution from the rest of the ERP. Instead of binding the warehouse to one finance and operations environment, it creates a dedicated legal entity for warehouse activities. That entity can receive instructions from and report progress to any upstream system: other Dynamics 365 instances, external ERPs, or order management platforms.

For GN, the appeal was immediate. Enterprise and Gaming could share the Shakopee facility without first standardizing on a single ERP. Workers could handle inbound and outbound processes for multiple companies through one set of scanner-driven workflows. Inventory could be stored anywhere in the warehouse, not in predetermined zones, because the system tracks ownership via inventory dimensions.

Schønberg described the result: “Warehouse Only Mode helped shift GN from an ERP-centric warehouse setup to a modular platform model. It has strengthened control, improved scalability, and created a stronger foundation for future automation.”

An Aggressive Timeline, a Disciplined Rollout

GN didn’t rush blindly. Following a warehouse management assessment in November 2024—during which the company evaluated Manhattan, Körber, Infor, and Dynamics 365—GN began on-site diagnostics in January 2025. The project team worked in short build-test-release cycles, deliberately avoiding a big-bang go-live.

The team manually released orders on the first day to maintain oversight. By day three, they activated full automation via batch jobs for order release, picking, packing, and shipment posting. “In the first three days we processed over 2,100 e-commerce orders on a brand-new warehouse system,” said Schønberg. “By day four we were back to normal operations with same-day shipping.”

That speed is notable for a greenfield facility with new processes, systems, and teams. It validates both the technology and the incremental rollout approach.

The Real Payoff: Operational Visibility

Speed and cost reduction—GN projects a 14% cost reduction—are compelling headlines. But the deeper win is operational visibility. Order management staff no longer need to email or call a 3PL to check on an order. They can see directly in Dynamics 365 whether a shipment is being picked, packed, or has left the dock.

This transparency turns the warehouse from a black box into a data-producing asset. Exceptions become manageable. Customer service can offer accurate updates. Inventory investigations become faster. Leaders can monitor same-day shipping cutoffs, cancellation rates, and inventory accuracy in near real time.

For a company that sells high-value technology products, that visibility is not a luxury—it’s a competitive requirement.

What This Means for Your Organization

GN’s story offers practical lessons for enterprises wrestling with similar fulfillment challenges.

If you rely heavily on 3PLs, ask whether your current arrangement gives you enough direct operational data. The physical logistics may be fine, but information delays can erode customer experience and decision-making.

If you run multiple ERP systems and want to consolidate warehousing, explore modular WMS platforms like Warehouse Only Mode. The ability to share physical infrastructure without forcing a single back-end system can unlock savings and agility.

If you are planning a WMS implementation, note GN’s phased approach. Start with a formal assessment, involve warehouse subject-matter experts from day one, and activate automation progressively—manual oversight on day one, full automation only after you’ve validated core flows.

If you care about serial tracking and traceability, note that GN’s system can capture up to 1,500 serial numbers from a single scanned label. That capability is critical for warranty operations, aftermarket services, and regulatory compliance. But it demands rigorous integration and master-data governance.

GN’s journey is not a blanket endorsement for insourcing over outsourcing. 3PLs remain essential for many businesses. The key is knowing when the loss of control outweighs the convenience.

The Road Ahead

GN’s immediate milestone was same-day shipping for B2C orders. The company is already expanding to B2B gaming operations, including master-carton and full-pallet picking, and is building out aftermarket capabilities like returns, repairs, and replacements. An AI agent built with Microsoft Copilot Studio and Power Automate now handles packaging and palletization calculations, cutting development time drastically compared to traditional custom code.

Longer term, GN aims to apply the same modular warehouse model to other regions and divisions, including its Hearing business. If successful, the Shakopee operation could become a template for how multinationals deploy Dynamics 365 as a warehouse platform rather than a traditional ERP monolith.

For Microsoft customers, GN’s project proves that Warehouse Only Mode is no longer just a conceptual option. It’s a production-hardened architecture capable of delivering rapid, measurable results—provided the organization commits to sound data governance, incremental delivery, and a clear separation of operational responsibilities.

The takeaway: same-day shipping wasn’t restored by magic. It was restored by reclaiming control, choosing the right platform architecture, and executing with discipline.