Inventory management oversees an organization's processes from ordering and storage to the utilization and sale of inventory, covering raw materials to finished products. This also involves the storage and handling of these items as they progress through the supply chain.
Inventory management has always been somewhat of a juggling act for companies that want to avoid both overstocks and dreaded stockouts while sticking to a budget and not having to lease, rent or buy space to store any inventory overages. The global pandemic and subsequent supply chain disruptions place an even brighter light on inventory management as companies struggled to effectively balance demand with supply.
“Inventory management is a key challenge for businesses of all sizes. Too much inventory can tie up cash flow and lead to storage costs, while too little can result in lost sales and unhappy customers,” Techweez points out. “Managing inventory levels is a delicate balancing act and one that requires careful planning and execution.”
Striking the Perfect Balance
Inventory often represents the biggest asset on a company’s balance sheet, and a treasure trove of potential profit waiting to be unlocked. Managing it wisely is more than just counting boxes; it's the key to keeping the cash flowing and the business thriving. NetSuite helps companies strike the perfect balance, which is the very lifeblood of any effective inventory management approach.
As a NetSuite Alliance Partner, Vursor supports companies to ensure that their NetSuite ERP system is ordering the right amount of stock, tracking inventory, monitoring demand and sales trends, setting reorder points and effectively managing the returns process. NetSuite also helps companies forecast demand, which is largely seen as one of the most difficult aspects of managing inventory.
“Many businesses rely on historical data to predict future demand, but this can be inaccurate if there are sudden changes in the market or unexpected events,” Techweez explains. “Using data analytics and machine learning can help businesses get more accurate forecasts by incorporating more data points and identifying patterns that may not be immediately obvious.”
6 Inventory Management Challenges that NetSuite Solves
Here are six ways NetSuite solves your most pressing inventory management problems:
- Minimize manual processes by automatically tracking inventory levels, orders and sales throughout the inventory lifecycle. NetSuite also provides the insights needed to make data-driven decisions and clear visibility into any inventory liabilities, like excess or slow-moving stock.
- Predefine fulfillment rules across multiple locations. This not only eliminates the need for multiple shipments for a single order, but it also helps you avoid excess shipping charges. “With visibility into stock across all locations, you can proactively monitor stock levels and sell through, transferring inventory between locations as necessary to ensure inventory availability and minimize obsolete inventory,” NetSuite says.
- Dynamically manage item reorder points and maintain predetermined stock levels. Ensuring that sufficient stock is always on-hand—and without going “over”—is an ongoing challenge for many companies. With its demand-based replenishment, NetSuite uses historical and seasonal sales data, average lead time and number of inventory days of supply to dynamically manage item reorder points and maintain preferred stock levels. The ERP also automatically generates tasks and alerts and sends them to the purchasing manager.
- Leverage the power of cycle counting. With NetSuite Smart Count, you’ll be able to improve the efficiency and accuracy of inventory management by automating inventory counts without freezing transactions across the entire stocking location. Here’s how it works: the inventory level used for the count is taken at the time the count starts for each individual item. Smart Count then keeps track of item-related transactions. If there is any activity during the count, NetSuite automatically alerts counters who, in turn, can take appropriate action.
- Minimize waste and increase inventory usage. With NetSuite, lot-numbered items track the quantity and specific cost for each lot as products are purchased and produced. “Serializing inventory allows you to choose a specific item when you fulfill an order,” NetSuite explains. “Together, lot and serial numbers let you define fulfillment strategies (such as first expiring, first out), minimizing waste and ensuring inventory is used in the most efficient way.”
- Optimize valuable warehouse floor space. Maximizing existing warehouse floor space offers several compelling benefits for companies, ultimately impacting efficiency, profitability, and even sustainability. NetSuite’s inventory management capabilities include warehouse management features to optimize storage space and inventory flow. This will allow you to categorize inventory storage down to shelf, bin and compartment levels, and automate order picking, packing, and shipping workflows.
An Implementation Partner You Can Trust
Vursor applies a customer-centric methodology that begins at the first planning meeting and extends through all the post-go-live support that your company requires. We’re here for you throughout the entire process, serving as a trusted partner in your ERP implementation, usage, and optimization journey.
Whether we’re creating tailor-made solutions that fulfill your enterprise requirements, helping you connect your new ERP with your existing third-party applications, or writing scripts that support specific internal processes, we’re on your side throughout your digital journey. In return, you get peace of mind knowing that your NetSuite partner has everything covered while you focus on what’s most important: running and growing your business.