Product Lifecycle Management (PLM) in NetSuite
PLM in NetSuite is a process that monitors the development of the product right from the inception of the manufacturing to servicing or repair of the Manufactured product.PLM in NetSuite not only monitors the product development but also monitors the people involved in the product manufacturing, the data related to the manufacturing of the product and the business processes that are in involved and gives the vital product information to the Organisations. In this blog, we would like to demonstrate the process involved in Product Lifecycle Management (PLM) in NetSuite .
Create Inventory Item Records in NetSuite.
The First stage in any PLM is we need to create the inventory and assembly item records in NetSuite. Inventory item is basically the raw material that is used to manufacture the Assembly item. An assembly item is made up of several components but identified as a single item. Work orders are entered to track the production of assembly items needed either for stock or to fill open orders.
Work Order to Build Assembly in NetSuite:
Once the work order is entered in NetSuite and if we have its member items available to manufacture the assembly item, the assembly item is built using the Assembly Build transaction . If we do not have the member items readily available we will first have to enter a purchase order, receive the inventory and then build the assembly. Once an assembly item is built, it is processed like an individual inventory item for tracking Cost of Goods Sold (COGS).You can also unbuild assemblies to increase your inventory of raw materials. For each assembly build you record, the assembly items’ stock level increases while the member items’ individual stock levels decrease. Now this manufactured assembly item can be eventually shipped to a customer against an open sales order. The item fulfillment is done in three stages, Pick, Pack and Ship.
Bin Management in NetSuite:
Managing inventory in warehouse plays a crucial role for Industrial Manufacturers.Bin management in NetSuite helps you identify places in your warehouse where you store inventory items. Bins help you track on-hand quantities within a warehouse. Tracking items by bins can help organize receiving items and simplify picking items to fulfill orders. For example, if you use bins when you receive a purchase order, the order can tell you which bin to put the items away in. Then, your stock level of that item in that bin is tracked.
There are two NetSuite features for bin management:
Bin Management in NetSuite – A basic means of tracking inventory in bins. This feature requires that you associate bins with items before you can use bins on transactions. This feature does not allow using bins with serialized and lot numbered items.
Advanced Bin / Numbered Inventory Management in NetSuite – An enhanced version of tracking bins, including for serial numbered and lot numbered items. Using this feature, you are not required to pre-associate bins with items to use bins on transactions. Also, you are allowed to associate bins with serialized and lot numbered items.
Lot Numbered Items in NetSuite:
Lot Numbered items track the purchase, stock, and sale of a group or quantity of items by assigning a specific number to the group or quantity. For example, a food distributor can track goods by assigning a lot number and expiration date to a group of perishable products. Lot numbered item records track the quantity of items and the specific cost for each lot as products are purchased and sold.
Serial Numbered Items in NetSuite:
Serialized inventory is a means to track the purchase and sale of inventory items by assigning a serial number to each item. Serializing inventory enables you to choose a specific serial numbered item to fulfill or receive an order. You can access the history of any serialized item to track the cost of the item, or check its status.
Shipping Items in NetSuite:
In NetSuite, we have Shipping items that are a delivery method for a shipping carrier. It describes how to ship an item and can include shipping rate information, handling rates, rules for shipping and handling, and specify when shipping is free. Shipping Item is also referred to as Shipping Method and Ship Via.
Advanced Shipping in NetSuite:
In a pick, pack, and ship fulfillment without advanced shipping, When you mark items in the sales order as shipped, an invoice is created at the same time for the shipped items whereas,Advanced shipping provides your shipping and accounting departments separate processes for fulfilling and billing orders. Your shipping department fulfills part or all of an order when it is ready to ship. Then, your accounting department creates an invoice or cash sale for the shipped items and rendered services. With Advanced Shipping, you can track partial shipments and invoice customers for partial or entire orders. Your picking tickets reflect the items on the order that are actually shipped.
Multiple Shipping Routes in NetSuite:
The Multiple Shipping Routes in NetSuite feature lets you ship to several addresses and use distinct shipping methods on the same transaction.
A shipping route is defined as a unique combination of the following:
We Hope this Step by step walk through the Product Lifecycle Management for Industrial Manufacturers in NetSuite helps you to drive your businesses better.
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