Significance of NetSuite Inventory Management Software
Significance of NetSuite Inventory Management Software
Complete visibility of operations, enhanced productivity, cost optimization, etc., are critical elements for the growth of any business. All these aspects are directly or indirectly connected with the essential business operation – inventory management. Businesses need to manage and maintain stocks of raw materials or finished goods to run their show efficiently.
It is possible to achieve this with the help of a technological solution – NetSuite Inventory management software. It automates your operations and creates a real-time updated inventory data repository, reducing efforts and errors. Thus, you have more streamlined processes, helping you increase productivity and improve results.
Explore why and how NetSuite inventory management software is essential to your business growth.
Why is NetSuite inventory management software needed?
The manufacturing business needs to maintain an adequate volume of raw materials and finished goods while keeping track of work-in-progress items. A retailer needs to track the products received from the wholesaler and available to sell. Similar needs exist for distributors, wholesalers, dealers, and consumable industries such as restaurants. An inventory management solution addresses these needs.
It is the perfect solution for any business that needs to track its stock of items during the ordering, production, storage, transportation, or selling process. It tells you how much of an item you have, at what location, and at which stage.
Stock tracking is essential to ensure that you are neither short of any item nor unnecessarily creating a dump of excess goods. Thus, managing the right amount of inventory is essential to save costs. So is the need for an inventory management system.
NetSuite Inventory Management Software answers your question, “What is the status of your stock?” in real-time.
You forecast your demand and place orders for the inputs for production. You sell the finished goods. You also need to manage the stock of unsold items lying at the warehouse, disposal of obsolete items at a loss, etc.
NetSuite Inventory management software handles all these processes without hiccups, improving your efficiency in delivering items to customers on time. It ensures the availability of the appropriate supplies at all times to address your customer demands while optimizing your cost and working capital cycle.
Let’s see how it can do that.
How does NetSuite inventory management software contribute to business growth?
Tracks your inventory
An inventory management system monitors the items in your inventory. The software tracks its movement through the entire lifecycle, from raw material to delivery. All this monitoring happens in real time.
So, when your item moves from one stage to another, you know it. The automatic updating of the inventory status removes the chances of manual errors. Thus, you have complete and accurate inventory details at every moment.
Streamlines the ordering process
The NetSuite inventory management software stores all the previous sales and order data, including tracking demand changes. Basis this, the system forecasts customer demand and prepares an inventory budget.
Based on these forecasts, you can order raw materials or finished products. You can set a limit; the system can reorder the products if the stock falls below this limit. Or the system generates an alert for the reduced stock, and you can reorder.
Also, it stores the data on your suppliers. You can collect and store information such as names, product expertise, supply duration, prices, etc. Based on these factors, you can compare the suppliers and decide which supplier to go ahead with. The information on suppliers helps you get the best deals and terms & conditions.
Thus, your ordering process becomes smoother and well-managed.
Insights into inventory costs and revenues
The NetSuite inventory management software gives you a complete idea of the inventory. Besides inventory tracking, you can also trace how much each item contributes to revenue and the associated cost.
It gives you a complete, uninterrupted flow of information on your costs, profits, and income for each inventory item, helping you with the data necessary for making an informed decision on whether to continue any product line. This comprehensive information and well-organized reports on inventory serve a good purpose during auditing.
Supports customer services and procurement departments
Your customer service department is concerned about providing required products to customers and ensuring customer satisfaction. With NetSuite inventory management software, you can never go wrong with stocking your store with the right product at the right time. Thus, you are always able to serve your customers.
Customers always get the product they want at the right time. Also, when customers always find what they want on your store shelves, they keep returning. Thus, you can retain more customers and improve customer loyalty.
An inventory management system raises an alert or places an order when inventory falls below a defined level. Your ordering process gets automated, with no extra manual effort required. It reduces the work of the procurement department and makes their processes efficient and flawless.
Helps in the planning of marketing campaigns
NetSuite Inventory management software tracks your inventory throughout the ecosystem. It helps to know which product is doing the best and which needs improvement. You are also aware of the demand for a product based on season, customer type, time of the day, etc.
According to the insights, you can fill your products in the store. If they sell fast, you frequently keep them on reorder. For slow-moving items, you plan different strategies to increase their sales.
Thus, an inventory management solution helps you plan your marketing campaigns. For example, if product A sells more in the summer, you need not spend much on its marketing. Instead, you can market complimentary items with it to increase your overall revenue numbers.
Your marketing campaigns can follow the reliable trends in your software’s dashboards.
Monitors invoices and payments
You can integrate your NetSuite inventory management software into payment gateways or applications. Such integration allows you to track your invoicing and payment processes.
The software simplifies your invoice-making process. You can set templates and feed in relevant details to prepare the invoice. You also have the option to edit or change the invoice when needed.
With multiple payment options available, this integrated solution allows you to make payments to your suppliers and accept payments from customers. You can generate receipts, track due dates, create alerts for payments due, etc.
Thus, inventory management software streamlines your billing and payment processes, making them efficient and accurate.
The NetSuite inventory management software is capable of categorizing product items. It can sort them by their manufacturing or expiry date to queue them from oldest to latest.
Once you know their expiry dates, you can sell them before others to reduce the chances of deadstock. Also, you can add offers or discounts to items near expiry to reduce the losses. Thus, the software enables you to reduce wastage and save money.
Saves your employees’ time and effort
The inventory management solution automates inventory-related tasks such as stock taking, receiving goods from suppliers, making entries for fulfilling orders, etc.
The automated processes reduce manual intervention, allowing employees more time to focus on productive jobs. As software provides real-time information on its stocks, the employees can skip counting and recounting inventory or merely punch the data into the system.
Automated processes reduce the chances of manual errors. Hence, the software ensures smooth, accurate, fast, and timely inventory management activities.
Storing unnecessary inventory items in the warehouse is also a cost to the company. You need to spend on warehouses, storage handling, transportation, utilities, and storage space insurance. You also need to give salaries to employees handling the storage and transportation.
As the number of days inventory lying in storage increases, the costs also increase. You can decrease storage time with NetSuite inventory management software, reducing all these associated expenses. It improves your working capital cycle and cost.
Moreover, inventory in storage is at risk of loss due to theft, obsolescence, or destruction due to natural disasters. So, you can save yourself from these costs when you manage your inventory well.
The inventory management solution stores data for all your product items. You can sort, filter them basis characteristics, and draw insights. You have all-time access to real-time information on all SKUs.
The software also has analytics capabilities. You can process the data and generate analytical reports. These help you understand trends and develop forecasts. Thus, you can always make decisions effortlessly with easy information availability.
Which is the right inventory management software?
The right inventory management software offers you all the above-discussed elements, making your inventory processes efficient and leading to business growth.
The solution’s data and insights on inventory and sales make your forecasts accurate and straightforward, helping you reduce costs with optimized inventory as per the customers’ demand patterns. Your employees also become more efficient with the software taking care of routine tasks. An efficient inventory management software makes your business productive, profitable, and growth-oriented.
But all these benefits are possible only when you have the right solution. And the right inventory management solution that helps you reap these benefits is NetSuite.
With NetSuite, you can:
- Have insights into your inventory at any time from any device
- Monitor inventory in multiple warehouses, in transit, or in stores
- Determine the balance between demand and supply
- Make accurate demand forecasts
- Determine reorder points to avoid overstocking or understocking
- Timely ordering and fulfillment processes reduce your costs of goods sold
- Trace inventory with the lot and serial numbers to reduce wastage by selling out the goods before their expiry
What role does Cloudiotech play here?
At Cloudiotech, we provide NetSuite software solutions and services. We help our clients with implementation, NetSuite integration, NetSuite customization, and configuration services. We also offer training to your employees for better use of the NetSuite solution.
We assure your business growth with our professional NetSuite services. Our NetSuite consultants and expert technical team customize the solution as per your industry needs. So, if you are looking for a streamlined inventory management process, here we are.
Interested in efficient and cost-effective inventory management?
Get in touch with Cloudiotech to know more.