NetSuite Inventory Management Overview
NetSuite Inventory Management is a comprehensive and integrated solution designed to streamline and optimize inventory processes for businesses, providing a single, real-time view of inventory across all locations and sales channels.
What it Does
NetSuite Inventory Management enables businesses to manage their inventory efficiently, reducing the need for manual processes and minimizing errors. It helps in maintaining optimal inventory levels, avoiding stockouts, and reducing excess inventory, thereby freeing up cash and enhancing overall business performance.
Key Features and Functionality
Real-Time Inventory Visibility
NetSuite offers real-time visibility into inventory levels, orders, and sales across all locations. This feature ensures accurate inventory records and enables informed decision-making.
Multi-Location Fulfillment
The system allows businesses to manage inventory across multiple locations, including physical locations and sub-locations. It enables predefined fulfillment rules to eliminate multiple shipments for a single order, reduce shipping charges, and transfer inventory between locations to ensure availability and minimize obsolete inventory.
Demand-Based Replenishment
NetSuite uses historical and seasonal sales data, average lead time, and the number of inventory days’ supply to dynamically manage item reorder points and maintain preferred stock levels. This ensures sufficient stock is on hand to fill anticipated orders while minimizing excess stock. The system automatically generates tasks and alerts for purchasing managers.
Traceability
The system provides robust traceability features, including lot and serial number tracking. This allows businesses to back and forward trace inventory, define fulfillment strategies such as first expiring, first out (FEFO), and manage matrix items by options like size and color. Bin management and merchandise hierarchy definitions further enhance traceability.
Item Visibility and Management
The Item 360 Dashboard centralizes all relevant information related to an item, including user-selected KPIs, inventory count by location, and projected stock levels. This dashboard also provides alerts for anticipated shortages or overstocks, simplifying inventory planning and management.
Cycle Counting
NetSuite’s Inventory Count feature helps businesses maintain accurate inventory levels through periodic counts of on-hand item quantities. This reduces overhead costs and the need for safety stock.
Automated Inventory Tracking
The system automates inventory tracking, eliminating the need for spreadsheets or manual tracking methods. It provides detailed records and activities associated with each order, enhancing auditing and compliance.
Warehouse Management System (WMS)
NetSuite’s WMS module adds functionality for putaway, order picking, barcode scanning, and returns authorization. It can run on mobile devices to direct warehouse employees through receiving, picking, and cycle counting, thereby boosting warehouse efficiency.
Benefits
- Optimized Inventory Levels: Ensures the right amount of stock is on hand, avoiding both stockouts and excess inventory.
- Improved Cash Flow: Reduces inventory on hand to free up cash.
- Enhanced Customer Satisfaction: Ensures product availability across multiple channels.
- Automated Processes: Minimizes manual processes, reducing errors and increasing efficiency.
- Real-Time Insights: Provides clear visibility into inventory liabilities, such as excess or slow-moving stock.
By integrating these features, NetSuite Inventory Management offers a holistic solution that streamlines inventory processes, enhances visibility, and drives data-driven decision-making, ultimately leading to improved operational efficiency and profitability.