NetSuite Light Manufacturing – Features and Benefits

NetSuite Light Manufacturing module offers wholesale distributors and manufacturers that urge and need for performing any other manufacturing activities or assembling products a single and integrated application for managing, simplifying and facilitating all manufacturing operations. This module gives light manufacturers higher cost-efficiency through greater support for assembling inventory kits, controlling product assembly, compiling materials lists, and calculating item costs.

This module also supports multiple units of measure, multiple locations, multiple subsidiaries, as well as lot tracking, bin management, matrix items, bar-code label printing, and serialized inventory. With this Light Manufacturing, NetSuite offers a greater functionality, which is key to executing a light-manufacturing operation, enabling the user to efficiently manage and control operations right from back office to the factory floor.

NetSuite Light Manufacturing – Features and Benefits

Key Features 

1. Accounting/ERP – These include accounts payable, accounts receivables, and general ledger. It also deals with subsidiary consolidation and multi-currency.

2. Order Fulfillment/Inventory – These include landed cost, matrix items, order management, serialized inventory, and multiple units of measure, special order/drop shipment, lot and bin management, purchasing, standard and customizable reports, as well as pick/pack/ship.

3. Manufacturing Processes – With this feature, NetSuite Light Manufacturing helps in demand planning, work order management, shop floor control, product engineering, manufacturing inventory control, kits and assemblies, project control, back-flush accounting, cost control, multi-division and multi-site planning and operations, as well as lot and serial control.

4. Customer Relationship Management – This comprises of marketing automation, sales force automation, incentive management, customer support and service, partner relationship management, offline sales client, and customer management and multi-channel revenue.

5. Website/Webstore – With Light Manufacturing for your NetSuite account platform, you can enjoy features such as multi-store management, inventory and webstore management integration, website analytics, eBay integration, partner, customer self-service centers, advanced sales and marketing features.

6. Employee Management and Productivity – This feature helps in paperless expense reports, project tracking, role-based dashboards, purchase requisitions, activity time management, advanced calendaring, employee self-service and document management.

Key Benefits 

With this module, manufacturing companies can easily manage a lot of critical activities of manufacturing such as creating inventory products directly from raw materials, controlling assembly of various products, assembling inventory kits, compiling materials lists, and calculating item costs.

1. One Application for Running Your Manufacturing Business

NetSuite Light Manufacturing platform allows you manage all your manufacturing operations with ju8st a single integrated application. This means that with NetSuite, the user can be able to do the following:
• Determine the margins and costing for a bundle or item of products,
• Build various inventory products from different raw materials,
• Create assemblies and manufacture products to sell or distribute,
• Compile materials lists required for manufacturing item(s),
• Assemble inventory kits before the sale of any item.

In addition, NetSuite can also support your complex business needs with work order management, multi-location inventory, assemblies and kits, bin management, bar coding, matrix items, lot tracking, multiple units of measure and serialized inventory.

2. Powerful Functionality

This module can support the functionality, which is the key to running your light-manufacturing operation. This includes:

i. Assembly Management – Assembly management capabilities for NetSuite allow you to effectively manage multi-level assemblies and component quantities. Building on its core strength in warehouse and inventory management, it closely joins assemblies with various work orders, letting multi-level assemblies to be created one level at once or at a time.

ii. Work Orders – Work order capabilities for NetSuite’s Light Manufacturing platform allows you manage the build process for the production work orders that lets the user replenish any standing inventory levels of all finished goods. As another option, you can readily manage work orders of special-order created to exact specifications for a given order or particular customer.

iii. Bill of Materials (BOM) – NetSuite’s BOM functionality allows you to readily cover the components needed for a single assembly and every component needed by a specific work order. Instructions of assembly can as well be included in any printable Bill-of-materials in the PDF format. However, since all build processes require a BOM that outlines what specific components are needed to effectively create the finished product, NetSuite closely couples bill of materials with both work orders and assemblies.

iv. Demand-Based Inventory Replenishment – NetSuite also allows light manufacturers to dynamically set preferred stock levels and reo-order points for the components of finished goods and assemblies, based on various factors, including seasonal or historical sales demand, the number of days right from supply to stock, and average lead time. Work orders usually influence the demand for all components as they’re completed while automating replenishment of components and source materials.

v. Product History Tracking – NetSuite’s Light Manufacturing module also offers employees very important inventory information by simply maintaining a full history for every product kit and assembly across the entire life-cycle. This means that when you opt to sell your assembly, you can easily show it as just a final product with each of its components individually serialized and listed or as just a single final product. In this case, you can use several different build materials, including service items, inventory and non-inventory to assemble your final product. You can also use your already existing inventory much more cost effectively by undoing all builds and then re-use their components. Additionally, the warehouse maintains full details of any assembly, resulting in improved inventory management and efficient tracking of each component level.

Other benefits for Light Manufacturing companies include:

  • It comes with real-time visibility across the entire company, from warehouse operations to sales to invoicing through up-to-the-minute dashboards.
  • Costs savings – from lowered labor and IT costs, faster time of production that leads to a faster ROI, and reduced error rates.
  • Integrated business management with just a single system to easily manage the life cycle of your business end-to-end, getting rid of integration hassles.
  • Optimized strategies for easier strategic transfer pricing.
  • NetSuite’s customizable configurations allow you to streamline processes of your business and leverage your cloud computing (SaaS) benefits for your already existing applications.
  • Light Manufacturing for NetSuite also lets minimized risk because the real time information via it improves your compliance and decision making, and enhances your ability for rapid respond to any changing market.

In conclusion, NetSuite comes with so many features for Light Manufacturing companies that you can utilize to benefit from its ease of use. NetSuite Light Manufacturing module is suitable for all business processes of any manufacturing company.

Brooke Nelson is the Lead Author & Editor of NetSweets. With more than 20,000 customers, NetSuite is a fascinating platform! It is the major player in ERP, CRM, and ecommerce.