Microblog
Supply Chain Risk
January 17, 2022
Supply chain management is a critical component of business efficiency and success for many industries, including Wholesale Distribution, Retail, Manufacturing and Construction. NetSuite Supply Chain Management (SCM) allows companies to streamline operations to improve customer satisfaction and cost efficiency.
NetSuite SCM provides features such as orders, inventory management, drop-shipping, returns management and more. The integrated suite of tools enables businesses to gain greater visibility into item availability and customer demand, allowing them to make informed decisions when it comes to purchasing and managing their supply chain. Users also have access to real-time inventory monitoring and analytics, enabling them to make timely and accurate adjustments in response to changes in the market.
NetSuite’s Supply Chain Management Module includes:
Manage purchase orders throughout the entire purchasing process, from initiation and review through order fulfilment and final payment. Monitor vendor performance and inventory levels in real-time, allowing for faster decision-making when it comes to ordering and managing suppliers.
Track inventory across multiple locations, including warehouses, stores, customer sites or wherever items are stored. With integrated bar-code scanning capabilities, users can quickly track item movement from shipment to storage to sale.
Eliminate the need to maintain physical inventory and manage order fulfilment by utilizing drop shipping services. NetSuite SCM supports multiple drop-shippers, making it easy to connect with suppliers across the globe.
Offer customers an easy way to return items they have purchased. Track returns, process refunds and capture return policies within NetSuite which maintains accurate financial records relating to the return.
Generate accurate predictions of future demand with the help of advanced analytics capabilities. Leverage forecasts to ensure that you have the right stock levels at all times while avoiding overstocking or under-stocking situations. Methods for calculating for demand plans include:
Utilize previous demand projections to calculate future inventory with the ordinary least-square regression method.
Calculate the overall average stock level needed using the moving average of historical demand, and then use that average to project future stock levels.
Analyze past demand data to recognize any seasonal trend in inventory flow, then project a similar pattern for future stock levels.
When using NetSuite for sales operations, this feature employs forward-looking sales forecast data (such as opportunities, estimates, etc.) to predict inventory demand.
Linear Regression - Utilize previous demand projections to calculate future inventory with the ordinary least-square regression method.
Calculate the overall average stock level needed using the moving average of historical demand, and then use that average to project future stock levels.
Analyze past demand data to recognize any seasonal trend in inventory flow, then project a similar pattern for future stock levels.
With a demand plan in place, NetSuite can automatically create purchase orders for approval based on demand plan suggestions. Once approved, these purchase orders can be released in bulk to vendors, minimizing the level of manual administrative effort required.
CEBA Solutions have helped hundreds of businesses to make the most of their NetSuite ERP system, including taking advantage of its Supply Chain Management Module. Get in touch with our experts today to learn more and get started on your NetSuite journey.
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