Optimizing inventory control is no longer a luxury, it’s a necessity.
Most manufacturers face the constant challenge of maintaining sufficient stock to fulfill customer orders while minimizing carrying costs associated with excess inventory. This is where Enterprise Resource Planning (ERP) systems come in, offering a comprehensive suite of solutions to optimize operational efficiency, including robust inventory control functionalities.
NetSuite, a leading cloud-based ERP solution, stands out for its robust inventory control features specifically designed to empower manufacturers. This article dives deep into how NetSuite tackles a crucial aspect of inventory control: Demand & Supply Planning. ERP Buddies had the opportunity to showcase this robust solution at the Manufacturing IT Summit in Mumbai in June.
Demand Forecasting: Predicting the Future of Your Inventory
NetSuite Demand Planning takes the guesswork out of predicting future demand. It leverages a combination of historical sales data, seasonal trends, and even planned promotional activities to generate highly accurate forecasts. NetSuite seamlessly integrates with other modules like CRM and Inventory Management, providing a comprehensive view of your entire business. This allows you to consider factors like upcoming marketing campaigns and customer behavior to create even more precise forecasts. With real-time insights into future demand, you can make informed production decisions, ensuring you have the right amount of inventory on hand to meet customer needs.
1. Historical Sales Data:
NetSuite analyzes past sales trends to identify seasonal fluctuations and patterns, providing a historical baseline for future demand.
2. Customer Buying Habits:
NetSuite can integrate with your CRM system to factor in customer purchase behavior and anticipated upcoming orders.
3. Marketing and Promotional Activities:
Planned marketing campaigns and promotions can significantly impact demand. NetSuite allows you to incorporate these factors into your forecast for a more accurate picture.
4. External Factors:
Economic trends, industry shifts, and even competitor activity can influence demand. NetSuite lets you integrate external data sources to account for these influences.
By considering all such factors, NetSuite generates a dynamic forecast that allows manufacturers to proactively prepare for future demand fluctuations. This translates to better production planning, reduced stockouts, and improved customer satisfaction.
Supply Planning: Bridging the Gap Between Demand and Inventory
Once you have a clear picture of future demand, you need a plan to ensure you have the necessary materials on hand to fulfill those orders. NetSuite’s Supply Planning module empowers manufacturers to bridge the gap between anticipated demand and current inventory levels.
NetSuite Supply Planning optimizes the balance between supply and demand to meet financial and service goals. It generates purchase, work, and transfer orders based on lead times and expected demand using a couple of methodologies:
- Timed-Phased Planning: Aligns orders with known repurchasing cycles, ensuring timely delivery
- Material Requirements Planning (MRP): Provides visibility into inventory needs, optimizing production schedules by determining required materials and timing based on demand and bill of materials (BOM).
- Lot Sizing methods: e.g. Lot For Lot’ for daily projections, ‘Fixed Lot Size’ for consistent orders, Fixed Lot Multiple’ for streamlined procurement, ‘Minimum Order Quantity’ for set thresholds, and ‘Periods of Supply’ for aggregated orders over specific timeframes.
- Cross-warehouse transfer planning
- Lead time consideration and analysis (optimal schedule)
- Item grouping for Material Requirements Planning (MRP) runs.
Planning Workbench: A Centralized Hub for Supply Chain Visibility
The Planning Workbench within NetSuite functions as a central hub for supply chain planning activities. It provides a user-friendly interface where planners can:
1. Visualize Supply and Demand
NetSuite presents the demand forecast alongside existing supply orders (purchase orders, production orders, transfers) in an easy-to-understand visual format. This allows planners to identify potential gaps and adjust plans accordingly.
2. Monitor Exceptions and Alerts
NetSuite proactively generates alerts for potential issues such as stockouts, late deliveries, or material shortages. This allows planners to take corrective action before disruptions occur.
3. Simulate Scenarios
NetSuite’s “What-if” scenario planning allows manufacturers to test the impact of different variables on their inventory levels. This could include changes in demand forecast, supplier lead times, or production capacity. This simulation capability allows for more informed decision-making.
Beyond the Basics: Additional NetSuite Inventory Control Advantages
NetSuite offers several additional features that further enhance inventory control for manufacturers
1. Lot and Serial Tracking:
This feature enables manufacturers to track specific batches of materials or finished goods throughout the entire production process, enhancing traceability and quality control.
2. Warehouse Management System (WMS) Integration
NetSuite integrates seamlessly with leading WMS solutions, optimizing warehouse operations through features like barcode scanning, pick-and-pack functionality, and real-time inventory tracking within the warehouse.
3. Advanced Reporting and Analytics:
NetSuite provides comprehensive reports and dashboards that offer valuable insights into inventory performance metrics like inventory turnover, carrying costs, and fill rates. This data empowers manufacturers to continuously optimize their inventory control strategies.
NetSuite: A Game Changer for Manufacturing Inventory Control
With its robust features and functionalities, NetSuite positions itself as a one-stop solution for modern manufacturing inventory control. Not only does it offer a comprehensive solution specifically designed for the unique needs of manufacturers, but it also empowers manufacturers to achieve greater operational efficiency, minimize costs, and ultimately, enhance customer satisfaction by consistently delivering on time and in full.
Now, the reality is implementing these sophisticated inventory control practices might seem intimidating, but with ERP Buddies, manufacturers don’t have to face this challenge alone.
Who are ERP Buddies?
ERP Buddies, a NetSuite Cloud ERP expert, helps businesses across industries implement and customize the software for a seamless cloud-based solution. We specialize in NetSuite services, including NetSuite Implementation, NetSuite Customization, NetSuite Integration, NetSuite Support, and much more
With over 50+ years of cumulative subject-level expertise, we offer on-site support and ensure a smooth experience, allowing you to focus on core business strategies and activities.
Implementing sophisticated practices with NetSuite might seem intimidating but with ERP
Buddies by your side, manufacturers don’t have to face this challenge alone. As NetSuite Cloud
ERP experts, we specialize in helping businesses across industries implement and customize the
software for a seamless cloud-based solution.
Conclusion
Partnering with ERP Buddies means you can leverage the full power of NetSuite’s robust
inventory control features to optimize your manufacturing operations. Let us help you achieve
greater operational efficiency, minimize costs, and enhance customer satisfaction by consistently
delivering on time and in full. With ERP Buddies as your trusted partner, you can focus on core
business strategies and activities while we take care of your NetSuite implementation and
support needs.
