Supply Chain Management & NetSuite 

What is Supply Chain Management?

Supply Chain Management (SCM) is a business activity which encompasses all processes from Purchasing items, Building/Assembling (manufacturing purchased items) to Finished Goods (items) and through to the Sale of items to your Customers.

Good supply chain management will positively ripple throughout all aspects of your business, ensuring efficiency, cost saving and exemplary customer service. However, the processes need to be put into practice to have the desired impact and selecting best in class Software to allow you to do this will offer you the efficiency and effectiveness to succeed.

This is where NetSuite comes into play…. 

NetSuite understands that balancing supply and demand is an intricate part of SCM and offers the features and functionality to allow businesses of all sizes to do so. From providing the ability to track manufacturing processes, lead times and cost, through to demand planning, sales forecasts and customer service, the complexities of SCM are streamlined and unified when using NetSuite.  

NetSuite allows your business to build out the functionalities that track Lead Times, Minimum Stock Levels and Reorder Points along with Minimum Order Quantities to allow for the most efficient cost-effective process to manage the fine line between the demand of your Customer and the supply of goods from your Supplier. 

Demand Management 

NetSuite’s Demand Planning functionality analyses historical demand, open opportunities and sales forecasts to predict and plan your future forecast. Whether your business needs this analysis weekly or monthly, NetSuite can provide moving average, linear regression or seasonal average calculations and give the capability to edit the demand forecast if necessary.  

Supply Management 

NetSuite’s Supply Management functionality encompasses a number of different features to allow for the most efficient receipt of goods to be able to supply your customers on time. 

The following key features allow this process to take place:  

  1. Dynamic Lead Times: NetSuite will auto-calculate the Lead Time of any inventory/Assembly Item within your NetSuite system. This calculates the length of time between Purchase Order to Item Receipt. This allows for the user to be able to see based when reviewing item stock levels how when might be most efficient to buy in stock.

  2. Minimum Stock Levels: NetSuite will allow for the user to either set the Minimum stock level of any item or it will dynamically auto calculate this number based on the consumption/sale of the item.  

  3. Reorder Points: NetSuite will allow the user to set a Reorder Point that once reached will provide a suggested Purchase Orders on an ‘Order Item’ screen to allow the user who does the purchasing of goods to see that these items need to be ordered. 

Works Orders and Assemblies

If your business is a manufacturing business that either builds to order or builds for stock, NetSuite provides a ‘Light Manufacturing’ module that encompasses Works Orders for planned building of Assembly items (the process of planning for building finished goods) and Assembly Builds (the physical building of stock items for sale) that will work in either way mentioned above. This facilitates the build for order function where items are only built based on actual sales order confirmations. The other option of building for stock allows for the use of production schedule and planning where Works Orders are created to show visibility what the production team will be completing over the coming days/weeks/months. 

This is a very useful feature that gives visibility to all areas of the business to show upcoming releases of stock.


Getting your Supply Chain Management correct can be tricky, but also extremely important to any business, having all relevant information on hand through NetSuite’s reporting is key to the critical business decisions that need to be made so frequently within this aspect of planning.

For more information on how we can help you put your process into practice through the worlds Leading Cloud ERP software, please do not hesitate to get in touch with us.