How Inventory Management Can Improve Your Business
What is Inventory Management?
Inventory management is essential for your business as it involves overseeing and controlling the flow of goods. By effectively managing inventory levels and tracking stock, you can meet customer demands, avoid stockouts or overstocking, optimize costs, streamline operations, ensure accurate financial reporting, and minimize wastage. With proper inventory management practices in place, you can enhance customer satisfaction, reduce expenses, improve operational efficiency, and boost profitability.
In order to have effective inventory management, businesses must have real-time data to accurately forecast, track trends, shift with demand and make quick and informed decisions.
What Does Inventory Management Software do?
Inventory management software simplifies and automates inventory-related tasks for businesses. It enables real-time monitoring of inventory levels, tracks stock movement, and handles order processing efficiently. The software also provides useful tools like demand forecasting, barcode or RFID scanning, inventory optimization, and comprehensive reporting and analytics. By seamlessly integrating with other business systems, it maintains data consistency and empowers informed decision-making. Ultimately, inventory management software enhances operational efficiency, cuts costs, and boosts customer satisfaction by ensuring precise inventory tracking and effective inventory management.
The Advantage of Using a Cloud-based Inventory Management Software:
Opting for a cloud-based inventory management software allows easy access to inventory data from any location, promoting flexibility and collaboration. Real-time updates ensure accurate and up-to-date information for better decision-making. The scalability of cloud-based solutions accommodates business growth without the need for additional hardware investments.
Automatic upgrades and maintenance ensure continuous improvements and system reliability. Data security measures protect sensitive inventory data from unauthorized access. Cloud-based solutions also offer cost efficiency by eliminating the need for on-premises infrastructure and providing flexible subscription models.
Seamless integration capabilities streamline workflows by connecting inventory management with other business systems. Ongoing customer support and training resources ensure a smooth transition and effective utilization of the software's features. Overall, a cloud-based inventory management software provides accessibility, scalability, security, cost-efficiency, integration, and continuous support to optimize inventory management processes and drive business success.
5 Major Supply Chain & Inventory Management Trends:
1. Supplier diversification
3. Enhancing e-commerce
4. Moving towards cloud-based technology
5. Artificial Intelligence
A rise in the swift implementation of advanced wireless technologies that offer increased speed and reduced delay. According to a recent survey conducted by MHI, a trade association for the supply chain industry, the majority of supply chain software now relies on the cloud as its primary platform. The survey projects that the adoption rate of cloud computing and storage in the industry, which was 40% in 2022, is expected to increase to 86% by 2027.
From aerial vehicles and automated machines to gadgets capable of monitoring the entire process of creating a packaged food item, these technologies can track the origin of ingredients, manufacture the product, deliver it, and selling it in stores.
Businesses are focused on building a resilient supply chain that allows them to quickly adapt to changes and disruptions. NetSuite cloud-based ERP can help lower operating costs, gain better visibility of the entire business, and easily scale with you as your organization changes and business grows.
The Benefits of Inventory Management in NetSuite
With its seamless integration, scalability, automation, customization options, and cloud-based accessibility, NetSuite stands out as the preferred choice for businesses seeking to optimize inventory management, streamline operations, and make informed decisions based on accurate data.
NetSuite ERP Inventory Management offers a wide range of capabilities to optimize inventory availability and levels. By leveraging NetSuite, businesses can gain a real-time view of key suppliers, shop floor performance indicators, and automate inventory management processes. This enables more efficient management of inventory levels, ensuring better fulfillment and enhanced customer service. NetSuite provides comprehensive features such as cycle count tracking, managing inventory across multiple locations, distribution requirements planning, safety stock management, demand planning, and re-order points.
NetSuite Inventory Management Success Story: Learn how Speedmaster drives supply chain efficiencies and scale globally with NetSuite, the leading cloud ERP solution.
According to a recent GEODIS supply chain survey, only 6% of the companies believed that they have achieved a complete view of their supply chain. As supply chains become more complex and expectations continue to drive innovation, it is imperative to have the proper flexibility and control across the business.
Inventory Forecasting Guide
An accurate inventory forecast is invaluable, especially when supply chains and consumer demand are changing rapidly. Getting forecasts right requires a complex mix of statistical and mathematical data analysis, experience with the business and customer insights.
Learn the common Inventory management challenges that businesses are facing and how better forecasting helps businesses succeed in today's competitive marketplace.
NetSuite Inventory Management Features:
Warehousing: NetSuite provides extraordinary abilities for tracking inventory across multiple locations, physical locations, and sub-locations. Physical locations can be hierarchical, offering the creation of sub-locations, and the ability to subdivide locations into bins for precise tracking. After the bins have been defined and locations have been determined, any item can be stored in any location to provide a complete view of inventory levels across all locations.
Cycle Counting: It is imperative for businesses to keep up with their inventory levels to maintain accuracy, lower overhead costs, and reduce required safety stock. NetSuite’s Inventory Count feature enhances the tracking you need to gain control over your assets, categorize items based on volume or value and provides periodic counts of on-hand item quantities.
Replenishment: NetSuite makes inventory management, replenishment, and multi-location planning an automated process. NetSuite provides a calculated system with preferred stocking levels, lead times, re-order points, and automatic suggestions in the order items list.
Traceability: Businesses need to have complete visibility of their inventory, and the ability to track products through their entire lifecycle. NetSuite provides the ability to define assembly items and inventory as being lot or serial tracked and enforces the capture of detailed information on every transaction for full traceability.
Optimize Inventory Levels & Processes
NetSuite demand planning capabilities enable top-notch inventory management and lean business operations. Purchasing and inventory managers can calculate demand based on historical data, sales forecasts, average trends, and seasonal fluctuations. NetSuite demand planning gives you full flexibility and control in setting timeframes, preferred stock levels, and other parameters while offering built-in functionality to help you streamline and automate select tasks. Close the loop by generating supply plans, creating and executing purchase and work orders seamlessly.
- Take advantage of flexible parameters for time intervals (weeks or months) and projection methods (historical data, sales forecasts, average trends, seasonal fluctuations).
- Keep up with ever-changing business needs by reviewing and manipulating demand plan results.
- Generate demand plans based on preferred stock levels set on a company or per-item basis.
- Save time by automatically generating purchase or work orders.
- Give users the power to set up or adjust calculation methods and criteria governing purchase and work order creation and execution.
- Streamline assembly by factoring in multi-part assembly and sub-components.
- Demand Planning Engine
Calculate demand projections based on historical data, sales forecasts, average trends, and seasonality.
- Supply Chain Intelligence with MRP
Leverage MRP parameters (forecast consumption, lot sizing methods including periods of supply, demand, and planning time fences) to calculate a supply plan with recommended purchase and work orders as well as rescheduling in/out and cancellation alerts.
- Available to Promise
Gain real-time visibility into item availability to determine projected ship dates for customer order fulfillment.
- Gross Requirements Inquiry
Model expected sales and purchase orders to see the impact to future inventory levels.
- Distribution Resource Planning
Plan inventory levels across multiple retail, distribution, and production locations using networks that transfer stock in a timely manner.
Inventory & Warehouse Management
Total Visibility and Control of Your Supply Chain
NetSuite’s inventory and warehouse management software lets you consolidate your inventory systems into a single, integrated warehouse inventory control solution.
With NetSuite’s inventory control software, you can efficiently manage every stage of the product life cycle as well as your different lines of business. Efficiently manage inventory levels for stronger control of inventory operations.
- Carry more items without needing more space.
- Optimize demand planning, logistics, warehousing, and distribution.
- Boost invoicing accuracy.
- Track end-to-end product history from origin to destination.
- Automate the replenishment of your inventory based on hardwired thresholds.
- Eliminate stockouts to maintain customer satisfaction and continuity.
- Streamline restocking.
- Simplify pricing, inventory status, and description management of matrix items.
- Create continuity in unit measurement across your website, retail stores, and partner channels.
- Demand-Based Inventory Replenishment
- Landed Cost & Margin Management
- Bin Management
- Serial & Lot Number Tracking
- Support for Matrix Items
- Multiple Units of Measure
Purchasing & Vendor Management
A Smoother Process for All Involved
NetSuite’s purchasing and vendor management capabilities reduce spending on goods and services, streamline procure-to-pay processes, and ensure compliance with corporate policies. Through a self- service Employee Center, employees can open and track purchase orders and other transactions themselves. Automatically routed approvals eliminate unnecessary spending while enforcing corporate policies. NetSuite’s self-service vendor portal reduces time spent handling vendor inquiries and makes it easier for them to do business with your organization.
- Run Lean Operations
Manage every step of the product life cycle from factory to store with an integrated manufacturing and wholesale distribution solution.
- Strengthen Vendor Relationships
Collaborate with suppliers, vendors, and partners by providing self-serve access and real-time visibility.
- Forecast with Confidence
Anticipate demand with better accuracy to maintain sufficient inventory levels.
- Timely Information and Insight
Improve business performance with real-time access to work order information, inventory, and related costs.
- Integrated Process Workflow
Manage the entire procure-to-pay process with capabilities to process requisitions, purchase orders, invoices, and payments in a single solution.
- Routing and Approval
Eliminate maverick spending with automatic routing and digital approval capabilities to authorize expenditures in accordance with company policy.
- Order Fulfillment
Fulfill orders effectively with complete bin management and cross-location visibility capabilities.
- Centralized Vendor Management
Provide vendors with self-service access to real-time information relating to the purchase order, inventory, and payment data.
Shipping & Fulfillment
Imagine A Seamless Fulfillment Process
Wasting time printing labels and documentation? Does it take your department too long to get rates and track delivery statuses? Thanks to NetSuite’s integration with top shipping carriers (i.e., FedEx and UPS®), you can manage all of your shipping needs from within NetSuite. Access to up-to-date shipping rates increases efficiency and lowers your fulfillment order processing costs.
- Automate shipping processes.
- Reduce Order Processing & Fulfillment Errors.
- Eliminate manual re-entry and order processing errors.
- Save time and resources by employing centralized customer, quote, order, invoice, and shipping information to easily reconcile tracking and delivery information.
- Gain real-time visibility into your fulfillment management performance with valuable reporting and clear dashboards.
- Electronically route orders to suppliers for drop shipping and minimize fulfillment errors.
- Improve returns processes with integration of order management and return merchandise authorization (RMA).
- Advanced order fulfillment.
- Complete integration of order and fulfillment management, logistics tracking, shipping, and customer service.
- Advanced reporting tools such as inventory turnover reports and inventory back-order reports.
- FedEx shipping integration.
- UPS shipping integration.
- USPS shipping integration.
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Transform Your Business With NetSuite Inventory Management Software
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