Effective inventory management is more than a matter of convenience; it’s a critical component of running a successful business. It helps streamline operations, enhance customer satisfaction, maintain sustainable growth, and maintain competitiveness in today’s ruthlessly competitive market.
However, for the majority of small and medium businesses worldwide, the inventory management systems aren’t all that comprehensive. They’re usually composed of an amalgamation of inefficient, outdated, or manually-entered (and thus susceptible to error) data on several Excel spreadsheets with several tabs.
The only thing these systems are effective at is failure to deliver a comprehensive understanding of stock movement. Fortunately, there are more efficient, cloud-based inventory management software solutions that ensure comprehensive inventory management and end-to-end inventory visibility, irrespective of the organization’s size or niche.
In this guide, we’ll discuss NetSuite inventory management, what it is, how it’s set up, and some of the most important benefits, features, and costs associated with NetSuite inventory management.
At their core, inventory management systems are on-prem or cloud-based software solutions that allow companies to track all incoming and outgoing stock to keep up with customer demands while also reducing overstocking or stockouts and their associated costs.
NetSuite Inventory Management System is a cloud-based software solution that provides a single, real-time view of the company’s inventory across all locations and sales channels, which allows the company to reduce its on-hand inventory to free up cash, optimize inventory levels across different channels, and avoid stockouts.
This includes real-time, company-wide inventory transparency across all channels, including warehouses, retail stores, drop shippers, and third-party logistics, all from one unified and automated inventory management solution.
By optimizing inventory levels across different channels, businesses ensure that product availability across multiple channels matches their respective customer demands and expectations. This results in less overstocking and lower inventory costs while simultaneously ensuring customer satisfaction.
Inventory management is crucial for the success of any business, ensuring the right balance between supply and demand. Effective inventory management helps prevent both excess stock and stockouts, maintaining a smooth operation and enhancing customer satisfaction. For instance, when using NetSuite inventory management, businesses can automate inventory tracking, reordering processes, and real-time updates, which significantly reduces manual errors and improves accuracy.
Proper inventory management ensures that products are available when customers need them, avoiding lost sales and unhappy customers. It also helps in optimizing storage costs by avoiding excess inventory that ties up capital and incurs holding costs. By using a system like NetSuite, businesses can gain insights into inventory levels and trends, making informed decisions about stock replenishment and inventory optimization.
Furthermore, inventory management enables businesses to take advantage of bulk purchasing discounts from suppliers, as they can accurately predict inventory needs and negotiate better terms. This strategic approach not only saves costs but also ensures a steady supply of products.
Efficient inventory management is essential for operational efficiency, cost reduction, and customer satisfaction. Leveraging tools like NetSuite inventory management allows businesses to stay competitive by maintaining optimal inventory levels, reducing costs, and enhancing overall productivity.
The NetSuite Inventory Management System comes equipped with a comprehensive range of features that allow companies to manage, track, control, and plan their inventories for more effective management. Here are some of the most important NetSuite inventory management features:
Setting up NetSuite Inventory Management Software usually starts with creating the inventory workflow, as well as creating item records and inventory items. The Inventory Workflow is integrated into the business account and encompasses inventory management from procurement to sales, with each transaction updating inventory records.
Setting up NetSuite Inventory Management also requires enabling several features associated with inventory management, such as locations, orders, drop shipments, inventory count, bin management, inventory status, and some advanced features. Of course, the needs of a particular company or business dictate the need for different inventory management features.
For example, using NetSuite Inventory Management enables the company to analyze stock demand needs. By gaining insight into demand needs, companies can determine replenishment requirements, which enables them to create orders according to a supply plan that will add more stock to the inventory as needed.
However, it’s worth noting that implementing NetSuite inventory management isn’t as easy as it seems. NetSuite implementation is best left to professionals, such as ScaleNorth, a premier NetSuite Solutions Provider and outsourced accounting partner.
Managing inventory levels in NetSuite begins with assessing stock levels on individual item records or through inventory reports but also by reviewing any negative inventory values for readjustment or replenishment.
Assessing stock levels also allows for real-time stock monitoring, demand requirements, order fulfillment, replenishment, and reorders. This data insight allows decision-makers to operate more effectively, streamlining business operations.
Namely, effective management of inventory levels prevents excess inventory from tying up capital that could be otherwise used while also preventing insufficient inventory from inducing stockouts, lost sales, and customer dissatisfaction, allowing businesses to maintain an optimal inventory level without incurring unnecessary costs.
Effective inventory management relies on a thorough understanding of customer demand. NetSuite’s demand forecasting allows businesses to predict future demand and sales based on historical data and other factors. This helps maintain inventory levels more accurately.
The flip side of that coin is reorder points, specific stock levels that trigger an alert to reorder more stock. However, NetSuite can also trigger an automated replenishment process, ensuring that the company’s inventory levels across multiple channels and locations are maintained at an optimum level.
Streamlining operations with NetSuite Inventory Management refers to the processes of integrating and automating various aspects of inventory control, with the end goal of enhancing efficiency, reducing costs, and improving customer satisfaction.
Streamlining operations significantly simplifies inventory management processes but also ensures scalability in terms of enabling businesses to respond more swiftly to sudden changes in market demands. This is usually done through the integration of inventory management with other NetSuite modules. This includes enterprise resource planning (ERP) tools, customer relationship management (CRM), financials, e-commerce, and many more.
These integrations provide companies with a unified view of their operations, ranging from inventory levels to sales, purchases, and finances, enabling them to make informed business decisions quickly. Alternatively, automation features are now crucial when it comes to streamlining inventory management.
By relying on NetSuite automation, companies can set up automatic reorder points and ensure that their inventory is replenished in a timely manner. The same applies to automated order fulfillment; the automated process significantly speeds up the order processing times and improves accuracy for better customer satisfaction.
Not only that but streamlining operations also leads to improved operational efficiency by reducing the number and intensity of manual tasks, reducing the likelihood of error. This results in increased cost savings, better control over inventory levels, and enhanced order fulfillment and delivery processes.
The NetSuite Inventory Management Software System comes equipped with advanced inventory management features, which provide businesses with increased control and visibility across multiple locations and complex supply chains.
These features include lot tracking, serial number tracking, bin management, and landed cost calculations. Lot and serial number tracking enables businesses to monitor their inventories at a granular level, ensuring traceability and compliance with any regulatory requirements governing a specific industry or niche.
Bin management, on the other hand, helps optimize warehouse operations by helping operators identify and track regular inventory items in bins within a certain location. This helps with tracking on-hand quantities and stock within a warehouse, organizing receiving items, and simplifying order fulfillment.
Landed cost calculations provide businesses with an option to assess the total cost of inventory by including the purchase price, shipping, handling, customs duties, and other costs associated with inventory and logistics, which play a crucial role in formulating goods’ pricing strategies.
Another advanced feature offered by the NetSuite Inventory Management Solution is multi-location inventory management, which allows companies to manage their inventories across multiple warehouses or storage facilities. This provides a comprehensive, unified view and control of inventory levels across multiple locations.
This is particularly important, as it enables automated inventory level optimization for each facility based on demand patterns, creating a more efficient distribution network that operates on reduced costs and shortens delivery times to customers. Ultimately, these advanced techniques go beyond mere inventory management, as they have the ability to optimize the entire supply chain.
NetSuite offers robust inventory management capabilities that can help businesses streamline their operations and improve efficiency. Some key benefits of using NetSuite for inventory management include:
Inventory management implies much more than just knowing where to put stuff and where to pull them from. It also involves complex calculations and different data analyses beyond mere storage that provide comprehensive insight into inventory costs and turnover.
Inventory costs and turnover are important factors as they also influence the overall health and operational efficiency of a business, affecting the total ROI that NetSuite Inventory Management offers. This underlines the importance of inventory costs and turnover ineffective inventory management.
NetSuite Inventory Management excels in analyzing data and providing the right tools for companies to determine the true costs of their inventory, including purchase prices, handling fees, taxes, and additional expenses.
The true cost of implementing NetSuite inventory management for your business will depend on numerous factors such as the size and complexity of your operations. ScaleNorth’s NetSuite inventory management experts can provide your business with an accurate quote.
NetSuite’s Inventory Management Software Solution offers a comprehensive range of analytics tools that provide a business with a complete insight into its inventory operations. Furthermore, the key features associated with the software allow companies to optimize their inventory levels with demand-based planning derived from historical data and sales forecasting, with the end goal of boosting profitability and offering company-wide inventory visibility.
