Many manufacturing companies find managing stock levels a challenge. It can be difficult to accurately track stock levels, and to keep track of stock input and outputs. To add to the challenge, a manufacturing company doesn’t necessarily know the precise value of their stock at any given time.
NetSuite has several features that help manufacturers manage stock levels more efficiently by providing real-time visibility, automating replenishment, and improving demand forecasting, while stock value management is optimised through accurate costing, reporting, and automated inventory adjustments.
Real-time inventory tracking
NetSuite offers real-time inventory tracking, ensuring that manufacturing businesses have up-to-date information on stock levels. This reduces the chances of running out of stock or overstocking, both of which can be costly. In addition, NetSuite automatically updates stock values based on actual purchases, inventory movements, and manufacturing orders, ensuring that stock value is calculated accurately at all times.
Demand planning and forecasting
NetSuite has comprehensive demand planning tools that help forecast future stock needs based on historical sales data, market trends, and seasonality. This allows manufacturers to plan ahead and maintain optimal stock levels, ensuring enough inventory to meet future demand without overstocking. By avoiding unnecessary excess stock, the costs associated with holding unsellable or obsolete items is reduced, lowering stock carrying costs.
Automated replenishment
NetSuite automates stock replenishment by setting predefined reorder points for each item. When stock falls below these levels, the system automatically generates purchase orders or work orders, ensuring stock levels are maintained without the need for manual intervention.
Lot and serial number tracking
For manufacturers dealing with specific batches or serialised items, NetSuite allows for tracking inventory using lot numbers or serial numbers. This ensures that the company always knows exactly how much of a specific batch or item is available. Lot and serial tracking also provides an accurate valuation of stock, particularly when certain batches have different costs due to variations in purchasing or manufacturing costs.
Work order management
NetSuite’s manufacturing module helps manage work orders, which include raw materials and components that go into finished goods. It tracks how much raw material is consumed and adjusts stock levels accordingly, ensuring that raw materials and finished goods are both managed effectively.
As raw materials are consumed in production, NetSuite adjusts the stock value of raw materials and applies it to the value of finished goods, ensuring that the total inventory value reflects production activities.
Inventory costing methods
NetSuite supports multiple inventory costing methods, including First-In-First-Out (FIFO), Last-In-First-Out (LIFO), and Average Costing. Manufacturers can choose the most appropriate method based on their financial or operational needs, ensuring accurate stock valuation.
Inventory aging and obsolescence tracking
NetSuite tracks inventory aging, helping manufacturers to identify slow-moving or obsolete stock that might need to be sold off, discounted, or written off. This ensures that the stock on hand is always relevant and not taking up valuable warehouse space.
By identifying and managing obsolete stock, manufacturers can more accurately assess their stock value, ensuring that outdated inventory does not inflate the perceived value of their stock assets.
Integrated supply chain management
NetSuite integrates with supply chain modules to manage vendor relationships and lead times, ensuring timely restocking and better coordination with suppliers. This reduces delays in production and helps keep stock levels balanced.
Multi-location inventory management
For manufacturers that have multiple warehouses or manufacturing sites, NetSuite enables tracking of stock levels across all locations. Stock can be transferred between locations, optimising storage, and ensuring that the right products are in the right place at the right time. NetSuite also provides visibility into the total stock value across all locations, giving manufacturers a clear picture of where their most valuable inventory is held.
Reporting and analytics
NetSuite provides powerful reporting and analytics tools, offering insights into inventory turnover, stock levels, and trends. This helps manufacturers make informed decisions about when and what to stock. Reports on stock value, historical costs, and valuation trends help manufacturers keep a close watch on inventory value, providing insights into cost-saving opportunities or risks related to inventory depreciation.
NetSuite for Manufacturers
NetSuite’s manufacturing module includes a whole slew of features and tools that specifically meet the needs of manufacturing companies. As well as offering optimised stock controls, it includes features that help with order management, works planning and scheduling, supply chain management, procurement, shop floor control, quality management, HR and CRM and marketing.
With two decades of experience in delivering NetSuite, and specialising in manufacturing, ERP Experts can help you to implement and improve NetSuite for your manufacturing business. Contact us to find out more about our implementation services and aftercare support plans.
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