Businesses and companies employ various tools and software to manage their supply chain processes and operations. Choosing the right tool that is relevant to your budget and operational requirement is the key to the success of your organization. Today, we’ll discuss Netsuite supply chain management; its key features, advantages, and disadvantages.
What is Netsuite Supply Chain Management?
Netsuite supply chain management is a software solution that helps businesses and companies to manage the flow and movement of goods and products from suppliers, vendors, and manufacturers to the end consumers. However, it streamlines the production and manufacturing process by making sure the availability of raw supplies at the right location, and precisely scheduling labor resources and machinery.
Netsuite has the capability to connect with suppliers and purchase supplies by making sure accuracy throughout the whole procurement process. However, it comprises integrated predictive analytics, inventory management, and demand planning to amplify production strategies, routing, and work orders. It makes sure the implementation of the supply plans and delivering the products on time and as promised.
Features of Netsuite SCM
Some of the key features and functions of Netsuite supply chain management software are as follows;
Sales Order Management
It allows you to manage customer relationships; develop and fulfill sale orders, manage customer information, and track sales orders. The solution helps you to create reports on sales history, shipping and invoicing, and tracking orders. However, it also allows you to manage exchanges and returns, payments and invoices, and analyze delivery schedules.
Purchasing Order Management
The purchase order management feature of Netsuite SCM consists of receiving goods against purchasing orders, tracking purchase order status, and developing procurement orders. The solution helps you in the following ways;
- Managing payment terms
- Leads time
- Contact details
- Managing supplier information
- Creating reports on purchasing order history
- Tracking and managing changes relevant to procurement order
The sales order management feature of Netsuite SCM helps you to analyze inventory turnover, and the stock level at various levels of the warehouse, and establish reorder points. The solution allows you to facilitate and support inventory assembly and disassembly, and track inventory by serial number.
The production planning feature of Netsuite SCM comprises tracking production purchases, dealing with production resources, scheduling, and planning production runs. The software helps you in the following ways;
- Analyzing machine and inventory usage
- Tracking production cost
- Amplifying efficiency
- Limited lead time
- Optimized production schedules
The demand planning feature of Netsuite SCM consists of helping users to predict the demands of the products based on external factors, current trends, and historical sales data. The software helps you in the following ways;
- Making sure sufficient inventory level to meet demands
- Managing transfer orders
- Production planning
- Generating purchase orders
- Making essential adjustments
- Recognizing overstocking and stockouts
The warehouse management feature of Netsuite SCM comprises developing shipping labels, managing warehouse operations, and analyzing and tracking inventory levels. The software helps you in the following ways;
- 3rd party warehouse management system
- RFID tracking
- Facilitating and supporting barcode scanning
- Optimized warehousing operations
- Making better decisions
- Transparent inventory
The transportation management feature of Netsuite comprises helping users to manage carrier relationships, tracking shipment status, implementing transportation logistics, and allowing users to plan. The solution helps you in the following ways;
- Integration with 3rd party shipping service providers
- Generating shipping labels
- Estimating shipping cost
- Limited transportation cost
- Optimized delivery routes
The costing feature of Netsutie SCM comprises helping users to manage overheads, labor, and material costs, and tracking another operational costs. The software solution helps you in the following ways;
- Estimating the cost of duties, freight, and goods
- Making informed decisions
- Routes and products
- Recognizing cost-effective suppliers
Analytics & Reporting
The analytics and reporting feature of Netsutie comprises helping users to have a key insight into the SC performance metrics. It helps you in the following ways;
- Managing transportation cost
- Purchase order lead time
- Inventory turnover
- Analyzing performance metrics
- Generating reports
Advantages of Netsuite SCM
Some of the main benefits and advantages of Netsuite SCM are as follows;
The prediction analytical tools in the software allow you to recognize the potential risk factors, and scenario planning helps you to comprehend and find the best way to respond to them.
Better Cash Flow
It is significant to comprehend when goods and materials would satisfy the demands and wishes of customers. It would decrease the in-hand inventory and effectively plan production.
Netsuite helps you to decrease the SC processing, implementation, and planning costs. When costs are low, ultimately the profitability would increase.
Disadvantages of Netsuite SCM
Some of the main challenges and disadvantages of Netsuite SCM are as follows;
It is difficult to maintain the quality. That’s why it is significant that you should maintain standards, conduct evaluations regularly during the manufacturing process, and analyze the received raw material.
Production delays would happen. It is significant to keep in mind the assemblies and lead time, keep the production process on track, and know when the material would arrive.
The stock-out is likely to happen. That’s why you should have maximum availability of products, and rightly plan for future demands to avoid stock out.
Conclusion: Netsuite Supply Chain Management
After an in-depth study of Netsuite supply chain management; we have realized that Netsuite is a very effective and comprehensive SCM tool. If you are learning about the functionality of Netsuite SCM, then you should keep in mind the abovementioned features, advantages, and disadvantages.
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