Inventory management plays a critical role in monitoring and controlling the movement of stocks from the warehouse to the customer. Small mishaps like inaccurate planning and discrepancies in stock levels may lead to increased costs and decreased satisfaction.
As a result, it's essential to stay on top of market trends and the best strategies for efficient management. In this guide, we'll explore how enterprise resource planning (ERP) solutions like NetSuite help in inventory management and enhance business processes.
NetSuite's Role in Warehouse Inventory Management
NetSuite inventory management offers real-time visibility into inventory levels, sales, and orders across locations and channels, allowing companies to reduce manual processes and use tracking insights to make data-driven decisions.
With this type of in-depth insight, businesses can minimize costs associated with slow-moving and excess stock and maintain inventory availability. It also offers a great way to improve customer satisfaction and scale your business.
What makes NetSuite capable of these functions and impacts, and how can it improve your inventory management processes? Let's take a deeper dive into the unique role of NetSuite as an ERP and how NetSuite reduces challenges in warehouse inventory management.
What Is ERP in Inventory Management?
A cloud-based enterprise resource planning system helps business leaders make decisions faster and more accurately through a centralized dashboard with visibility into key inventory data. The role of ERP in inventory management involves providing metrics and data about storage capacities, purchase updates, shipping timelines, reorder statuses, stock turnover and loss prevention strategies.
NetSuite is a type of cloud-based ERP software that offers a particular set of features for improving inventory management:
- Inventory tracking: NetSuite helps track and provide up-to-date data about where stocks and goods are in the supply chain, giving users the real-time information they need to make informed decisions.
- Cloud infrastructure: To reduce manual processes for company staff, this feature manages inventory data and computing in the cloud to keep data backed up and secure while accessible to team members from any location.
- Inventory control: The inventory control feature monitors and tracks the stock in the warehouse and facilitates the seamless movement of products through the supply chain.
- Machine learning and artificial intelligence: NetSuite analyzes demand trends using intelligent technologies to help companies maintain the correct number of stock within the warehouse at all times.
- Inventory alerts: If you have issues with stock wastage and unfulfilled orders, NetSuite offers an alert feature that informs users beforehand if there is too little or too much stock.
- Internet of Things: This integration uses digital labels, radio-frequency identification tracking and GPS tracking to manage stocks and automate inventory controls.
- Inventory barcoding: NetSuite's barcoding feature provides error-free data with inventory statuses to help companies track inventory and maintain better communication through these statuses.
How NetSuite Addresses Common Pain Points in Inventory Management
Companies need powerful management systems to counter the common challenges they experience, such as imbalances of supply and demand, unorganized storage and delivery delays. NetSuite acknowledges these challenges and helps businesses overcome them one at a time.
- Inaccurate planning: With incorrect planning, businesses can face issues like having too little or too much stock. Insufficient stock can lead to decreased sales, and excess inventory might incur higher storage prices and create a negative cash flow. NetSuite counters this challenge with intelligent technology that helps companies determine the appropriate amount of stock.
- Time-consuming reporting: When staff carry out manual reports, there's an increased chance of inaccurate information, and the process can be time-consuming. Businesses can stay more productive when NetSuite handles these processes because workers can focus on other, more important tasks while NetSuite produces accurate reports.
- Lack of visibility: Some customers prefer to know exactly where their product is and when they'll receive it. NetSuite tracks and traces products, giving you the visibility you need to accurately inform consumers about their product's status.
- Stock inconsistency: Have you ever been in a situation where one warehouse location has too much stock and the other is nearly empty? NetSuite helps you avoid this issue by monitoring your business locations to ensure stock levels are optimal.
- Overselling: When you record incorrect stock amounts, there's a chance you'll accept a payment for a product or quantity that isn't in stock. Canceling these orders may create a negative customer experience and potentially damage your reputation.
Benefits of Improved Inventory Management
With all of the inventory challenges a manufacturing company can face, NetSuite can be a great addition to warehouse inventory processes. From increased savings to improved tracking and traceability, NetSuite offers various ways to improve inventory management.
Real-Time Visibility
One of the greatest benefits of NetSuite is that it provides access to real-time data in a well-organized format, allowing you to track and trace where your inventory is, how much inventory is left and whether you need more items. This information allows you to make better decisions and improve customer service.
Management Across Channels and Locations
Adding to real-time visibility, NetSuite offers options to monitor and provide insights for various locations. You'll have complete visibility of all orders and inventory from varying departments, locations and channels, starting with the entire sales process until the order is complete. As a bonus, businesses can integrate NetSuite inventory data with back-office and accounting processes.
Improved Forecasting
If you're looking to stay up-to-date on the latest market and demand trends, NetSuite efficiently collects data and delivers the insights you need to keep up with the market. These patterns and data-centric insights will allow you to seamlessly improve stock forecasting and minimize the chances of stockouts.
Data-Driven Decision-Making
NetSuite ERP delivers excellent reporting capabilities with data analytics, enabling businesses to make stock decisions based on accurate data. Companies can also make these decisions faster, which helps them reduce stockholding and carrying costs.
Maintain Industry Compliance
As a globally leading system, NetSuite's solution is fully compliant with global financial transparency compliance regulations and standards because it accurately values stocks. It also meets accuracy standards to help you avoid fines and penalties.
Improve Inventory Management With Luxent's Help
With its ability to increase scalability, reduce costs and improve accuracy, NetSuite has become a trustworthy system for various manufacturing companies. If you're looking for an effective cloud-based system to implement, we at Luxent can help you get started with NetSuite. We're a leading NetSuite solution provider for small to medium-sized businesses looking to improve their business processes and reach new heights.
If you're looking for ways to drive efficiency and improve your inventory management processes, request a demo with us or contact our experts today to implement NetSuite, an unparalleled solution.
