Inventory management is extremely important for businesses. By optimizing stock levels, a company can keep inventory costs at a minimum while still having enough on hand to meet demand. NetSuite’s inventory management software, NetSuite Advanced Inventory, helps accomplish this.
In order to optimize, businesses need more information and visibility about their inventory. The first step in this is “item creation”. Users can create items in the inventory system to define the item’s characteristics. For example, a business needs to know information such as how much of each item they have, where those items are located, what types (e.g. colors, sizes, styles, etc.) those items are, etc.
The way NetSuite’s inventory management system keeps account of this information is by tracking serial numbers or lot numbers associated with specific items or groups, respectively. These numbers can be assigned to different items, allowing businesses to track sales orders, as well as the product type information mentioned above. By tracking sales orders, managers and employees can tell which and how many items have been sold. By tracking product information, they can tell the amounts of each item being carried.
How about location information? NetSuite keeps track of this with bin management. Again, using serial/lot numbers, a NetSuite user can associate a particular item with a location. That way, they can know the location of that item at all times, and change the location data when the item moves.
With products and product information clearly defined, a NetSuite user can set up procurement rules for those products with regards to demand. The customer can replenish inventory in response to factors such as seasonal and forecasted demand changes, average lead time, and number of days’ supply to stock.
Businesses can also keep alerts when stocks reach a certain minimum level. This way, they can re-order items before they run out and ensure they have inventory available at all times.
Finally, NetSuite Advanced Inventory also adds value by allowing the printing of bar codes, other item labels, packing slips, and invoices.
With all these features, NetSuite provides enormous value to businesses. Managers have full visibility into the inventory system, as well as analytics for the data involved. By optimizing inventory levels and availability, businesses can reduce costs, while keeping enough product to avoid stock outs and meet demand. And of course, through this entire process, customer satisfaction is increased.
If you’d like to learn more about inventory management for your business, get in touch. Bista Solutions is a top NetSuite implementation partner and can ensure your business requirements are met.