The fulfilment process, in its simplest form, is sending items to fulfil an open sales/transfer order. The item is picked from the warehouse, packaged up then sent to the customer (or other warehouse location in the case of a transfer order).
Within NetSuite, there are two separate process flows dependant on whether you decide to make use of the ‘Advanced Shipping’ feature or not.
Without Advanced Shipping, the item fulfilment and billing is completed through a single transaction record. A bill will automatically be created whenever a sales order is fulfilled, whether this be partial or complete fulfilment.
Advanced Shipping lets you separate the fulfilment and billing processes, having a single transaction to record the item fulfilment, and a second transaction record to bill for the items.
The benefits of using a feature like Advanced Shipping within NetSuite include:
- Enhanced Reporting
- Invoice in Advance of Fulfilment
- Invoice Partially Fulfilled Orders
- Invoice Complete Orders
- Separate Processes for Fulfilment & Billing
For an organisations shipping department, being able to fulfil parts of an order when they are ready to ship, then account/billing departments can invoice the customer for the part of the order that has been fulfilled. When the time comes to complete the order, another item fulfilment record is created & a second invoice can be sent to the customer to close out the sales order.
The picking ticket/shipping notice sent to the warehouse/customer will contain only the items fulfilled in that portion of the order.
This gives both you, and your customer better insight into your order processing.
Another feature of NetSuite’s fulfilment process is ‘Pick, Pack, and Ship’.
- Picked: The items have been picked from the warehouse and are awaiting packaging and shipping.
- Packed: The items have been packaged and are now waiting to be shipped.
- Shipped: The items are now on their way to the customer, and the order is now completely fulfilled.
On a sales order, using pick/pack/ship, you could have items at different stages of fulfilment. Items A & B could be picked & packed, while items C, D & E are picked, packed and shipped and item F is picked.
These will all have different item fulfilment records for ease of tracking and managing your fulfilment process.
In summary, smart businesses understand that controlling inventory, fulfilment and shipping costs is essential for success. NetSuite enables you to fulfil orders efficiently with Wave Selection and Release. Pick, Pack and Ship optimally with use of system directed picking and packing. Easily manage kits and work orders. Providing you with the ability to streamline your processes and systems, resulting in happy, satisfied customers.