What is NetSuite ERP & How Does It Work?

What is NetSuite ERP & How Does It Work?

Are you curious about how NetSuite ERP may completely transform the way your company runs? Learn how to use it to streamline operations such as order processing, financial control, and inventory management across several locations and subsidiaries. NetSuite provides a complete solution to improve productivity, teamwork, and decision-making with capabilities like real-time visibility, automation, and comprehensive reporting.

As businesses are experiencing growth, relying on traditional spreadsheets is becoming inadequate. This moment signals the need for an Enterprise Resource Planning (ERP) system. While the term “ERP” is widely known, many professionals may not completely understand the extensive benefits these systems offer to enhance team productivity and organizational efficiency.

What Experts Say?

“The company could have handled the growth without an ERP system, but we would have been forced to hire a lot more people.”

Ian Larkin
Controller, CentralReach

NetSuite Enterprise Resource Planning provides financials, inventory management, HR, professional services automation, and omnichannel commerce modules for business growth to more than 37,000 clients throughout 219 countries and territories worldwide.

Are you prepared to grow your company to new heights? Take a look at a NetSuite ERP overview that talks about what an actual enterprise resource planning NetSuite is!

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Why is ERP Important for Businesses?

ERP systems have become essential for businesses aiming to optimize enterprise resource planning and utilization. These systems enable leaders to allocate both human resources and financial capital efficiently, establishing more cost-effective business processes without compromising quality or financial performance.

In terms of planning and coordination, an ERP solution serves as a valuable asset. Employees can access detailed information on current inventory, customer orders, and supplier purchase orders and forecast future demand, allowing for proactive adjustments to prevent potential issues. ERP system enhances communication and collaboration by providing insights into the status of different departments and guiding informed decision-making.

Functioning as a comprehensive data source, ERP systems generate reports and analytics of financial data that prove pivotal for business decisions. Transforming vast amounts of information into clear charts and graphs helps illustrate trends and model possible outcomes as business grows, providing executives with invaluable insights.

What is NetSuite ERP?

The question: What’s NetSuite ERP, or is NetSuite cloud-based?

Answered as – It is an all-in-one cloud solution that helps streamline business processes by automating important tasks. It also gives real-time insights into how things are going financially and operationally.

So, what does NetSuite do, or how does NetSuite work?

Working on a SaaS model, the ERP NetSuite system manages core functions, such as inventory, finance and accounting, supply chain, and procurement. Organizations can add options like Customer Relationship Management /CRM, service and marketing automation, Human Resources, performance management, omnichannel commerce, and more. The best part about centralized system is that all of these modules share a common database that updates in real time and is accessible to authorized users across entire core business processes and functions.

NetSuite’s Wide Array of Modules

Meeting the needs of diverse businesses, NetSuite ERP offers:

  • Inventory Management
  • Supply Chain Management
  • Order Management
  • Procurement
  • Warehouse Management System
  • Financial Management
  • Global Business Management
  • Enterprise Performance Management 

How Does NetSuite ERP Work?

NetSuite operates through a cloud-based subscription model with no on-premises options. As a multi-tenant cloud solution, all customers use the same software version and infrastructure, benefiting from automatic updates. Each customer’s data is stored securely, ensuring privacy. Users access the platform from any device with an internet connection, allowing flexibility. 

Role-based access provides relevant information and a single sign-on portal access to all ERP modules. The user-friendly interface allows the customization of dashboards with essential metrics, charts, and shortcuts, offering a comprehensive and accessible business management solution. 

Quick Check on NetSuite Features and Abilities

What is NetSuite used for? NetSuite cloud ERP software stands out as a cloud ERP implementation system due to its distinctive features:

  • Unified Business View: NetSuite consolidates finance, supply chain, manufacturing, HR, and ecommerce onto a single platform with a shared database, promoting efficient business operations management and real-time monitoring of critical business processes.
  • Native Integrations: All NetSuite applications interact with the central database, eliminating the need for unreliable third-party integrations. This unified architecture enhances user experience, reduces training time, and facilitates streamlined processes.
  • True Cloud Solution: Unlike many ERP systems labeled as “cloud,” NetSuite is a born-in-the-cloud, multi-tenant solution, ensuring scalability, quick upgrades, and freedom from version lock, unlike retrofitted on-premises software solutions.
  • Deep Reporting Capabilities: NetSuite’s extensive reporting tools leverage the influx of data, allowing users to generate comprehensive reports on various aspects, supported by role-based dashboards for informed decision-making at all levels.
  • Built-in Flexibility: NetSuite adapts to diverse business needs, offering functionality and customization through SuiteCloud apps and tools. Whether a multinational corporation or a startup, NetSuite accommodates different industries and corporate structures effectively.
  • Comprehensive ERP Functionality: NetSuite provides cloud-based integrated supply chain, inventory, accounting, and order management.
  • Professional Services Automation: For effective project planning, tracking, and execution, make use of NetSuite OpenAir.
  • Global Management: Real-time, unified management across several nations, currencies, languages, and subsidiaries is made possible by NetSuite OneWorld.
  • Sturdy Planning and Budgeting: With NetSuite, users can make, organize, and work together on spreadsheets, papers, and plans.
  • Enhanced Decision-Making: By streamlining decision-making procedures, collaborative technologies raise corporate agility as a whole.

What is NetSuite Inventory Management?

What Experts Say?

“I needed an inventory management system where everything was traceable. In NetSuite, I can see related records and every activity associated with a particular order — at the detail level — for auditing. Now we have valid, documented steps of what happened [with any given order].”

Melvin Rodriguez
COO at Mielle Organics

NetSuite Inventory Management offers a real-time, unified perspective on inventory across locations and sales channels. This enables businesses to minimize on-hand inventory, freeing up cash without risking stockouts. By optimizing inventory levels and ensuring product availability across channels, NetSuite helps control costs while exceeding customer expectations.

Challenges NetSuite Inventory Management Solves:

  • Manual Reporting: NetSuite Inventory Management gets rid of manual and time-consuming reporting. It automates the process, making sure inventory tracking is accurate and efficient.
  • Inefficient Utilization: NetSuite ensures inventory is optimally used, preventing excess in one place while avoiding stockouts in another.
  • Inaccurate Planning: NetSuite tackles the issues of poor planning—like stockouts and excess inventory. It provides strong financial planning and tools to minimize risks and maintain optimal inventory levels.
  • Excessive Handling: NetSuite cuts down unnecessary handling, reducing the cost of goods sold (COGS) and streamlining inventory processes.
  • Lack of Visibility: NetSuite provides complete visibility, allowing businesses to track products from supplier to customer order. The barcoding feature eliminates data entry errors and automates communication within the system.

What is NetSuite Supply Chain Management?

NetSuite Supply Chain Management helps businesses handle the entire process, from getting goods from suppliers to delivering them to customers. It ensures smooth production by tracking materials, scheduling resources, and keeping accurate inventory. 

The procurement module improves communication with suppliers for precise purchasing. Integrated tools optimize production strategies, ensuring timely delivery. NetSuite makes the supply chain seamless, boosting overall operational efficiency.

Supply Chain Management (SCM) collaborates on customer relationships among various entities in the creation and distribution of products or professional services together. Unlike a single company managing multiple software systems and everything to manage supply chains, SCM involves multiple businesses working together.

Physical Flow:

Starting with suppliers providing raw materials, products move through manufacturers, distributors, and retailers and reach the end customer. Transportation and storage at each stage require meticulous planning and financial resource management.

Information Flow:

In parallel with operational and financial performance processes, stakeholders rely on detailed information flow. Suppliers use purchase orders for production planning, distributors need shipment details, and constant data exchange ensures smooth operations. Specialized accounting software, like NetSuite supply chain management systems, facilitates seamless tracking and sharing of vital information.

Benefits of NetSuite Supply Chain Management (SCM)

Implementing the NetSuite Supply Chain Management (SCM) strategy yields numerous advantages:

  • Cost Savings: Efficiency gains from accurate demand predictions lead to reduced inventory costs, enhanced cash flow, and lower production and shipping expenses.
  • Improved Customer Experience: Avoiding product shortages boosts customer satisfaction. Streamlining supply chains allows quicker and more cost-effective shipping, contributing to a positive customer experience.
  • Fewer Quality Issues: NetSuite SCM enhances quality assurance procedures, minimizes product recalls, and addresses issues with suppliers or couriers, resulting in improved product quality and reduced service-related costs.

What is NetSuite Order Management?

NetSuite Order Management streamlines the end-to-end order process, automating tasks from order placement to post-sales service. This comprehensive solution ensures precision in recordkeeping, encompassing order capture, validation, release, shipment confirmation, customer communication, and settlement.

Benefits of NetSuite Order Management 

  • Swift Order Processing: By effectively overseeing information flow across fulfillment locations and providers, NetSuite Order Management facilitates swift and efficient order processing. 
  • Minimal Delay: It empowers businesses to promptly address fulfillment issues, minimizing delays and enhancing overall operational efficiency. 

What is NetSuite Procurement?

NetSuite Procurement Software is an integrated package that aims to simplify and improve businesses’ procurement processes. Through its ability to assign purchase orders only to authorized suppliers and utilize a pre-negotiated contract, the software ensures that firms can obtain products and services at the most competitive prices as well during desired periods of time. Centralizing vendor management and procurement monitoring allows organizations to save even time while saving money.

The system increases visibility by providing real-time information on company spending as well as how vendors are performing, with results that can inform decision-making. The procurement dashboard combines all the relevant information, such as transactions, records, vendor performance, and departmental expenditure, facilitating communication throughout procuring and making payments.

Benefits of NetSuite Procurement 

These are the benefits of NetSuite Procurement.

  • Increased Profitability: Easy availability of comprehensive data on any product supplied by vendors. Enables purchasing managers to win better contracts and use economies of scale.
  • Better Visibility: Consolidated vendor information and associated projects into a centralized location. Provides comprehensive, relevant information at the buyers’ fingertips, enabling them to make well-informed decisions.
  • Improved Vendor Relationships: The vendor portal provides real-time collaboration between vendors and buyers. It makes document and idea-sharing fluid, thereby improving communication and cooperation.
  • Cost Controls: Purchase orders specify the cost for requested items, avoiding surprise price spikes. Resolves conflicts between invoices and order items, making correct billing possible.
  • Identification of Variances: Three-way matching NetSuite functionality pinpoints differences between purchase orders, receiving records, and billing documents. Allows immediate identification and correction of inconsistencies, helping achieve accuracy in procurement processes.

What is NetSuite Warehouse Management?

NetSuite Warehouse Management System (WMS) is a comprehensive solution to enhance and streamline warehouse operations. NetSuite WMS ensures efficient day-to-day activities. It leverages industry-leading practices, such as mobile RF barcode scanning, defined strategies for putaway and picking, task management, return authorization receipts, and cycle count plans.

Particularly beneficial for businesses handling numerous SKUs across multiple locations, this system eliminates manual processes and the pitfalls of relying on spreadsheets or pen-and-paper methods. By automating warehouse management, NetSuite WMS helps minimize handling costs, enhance operational efficiency, and consistently meet customer expectations, offering a sophisticated and integrated solution for optimized logistics.

Benefits of NetSuite Warehouse Management 

  • Improved Data Capture and Accuracy: Mobile devices facilitate accurate capture of item, lot, and serial numbers during goods receipt, ensuring data precision.
  • Better Inventory Visibility: Real-time inventory tracking as items enter, move through, and exit the warehouse provides enhanced visibility into stock levels.
  • Optimized Space Utilization: Efficiently manage warehouse space by ensuring products have adequate storage while strategically placing high-demand items near fulfillment areas.
  • Boost Labor Productivity: Mobile devices guide users through essential tasks such as receiving, storing, picking, and shipping, maximizing efficiency and boosting overall labor productivity.
  • Increased Order Fill Rates and Accuracy: Implement efficient pick paths and opportunistic multi-order picking to streamline fulfillment processes, leading to higher order fill rates and improved order accuracy.
  • Higher Customer Satisfaction: Quick order delivery minimized mis-picks, and accurate fulfillment through data validation contributed to heightened customer satisfaction.

What is NetSuite Financial Management?

NetSuite Financial Management is a cloud-based financial management solution that helps businesses improve the efficiency of their accounting capabilities. The NetSuite advantages include better efficiency, real-time visibility, and greater financial control. The accounting tools of the platform are powerful instruments to handle data related to finance, transactions, and financial reporting. Moreover, the features of financial consolidation that it offers assist organizations in efficiently handling many entities and subsidiaries. The platform reaches governance, and risk management, and compliance with tools to improve regulation-compliance monitoring and financial risk events.

Benefits of NetSuite Financial Management 

  • Streamlined recurring revenue streams: NetSuite offers subscription billing features, helping businesses automate and streamline recurring revenue streams. 
  • Financial forecast: The planning and budgeting module facilitates the development of effective financial forecasts aligned with business strategies. 
  • Automated revenue recognition: The system also automates revenue recognition processes in line with the accounting standards. 
  • Reporting: NetSuite Financial Management is effective in creating detailed financial reports that aid decision-making. 

NetSuite Global Business Management

OneWorld is an ERP solution provided by NetSuite Global Business Management that serves more than 217 countries and dependent territories. This powerful system enables companies to manage several subsidiaries, business units, and legal entities through a single platform. NetSuite OneWorld supports 27 languages and over one hundred and ninety currencies, enabling companies to have smooth global operations that can easily interact with customers and suppliers worldwide. The country-specific settings of the platform are essential in enabling compliance with local accounting, tax, and regulatory requirements. 

Some key elements include multi-currency and multi-language support, global accounting and consolidation, consolidated financial statements, indirect tax management, and electronic payment capabilities.

Benefits of NetSuite Global Business Management 

  • Real-time visibility: With NetSuite Global Business Management, multiple levels of the enterprise get real-time visibility into operational and financial process performance. 
  • Standardizing process: It helps standardize core processes at each level, mitigate risk points, and exercise cost control. 
  • Enhanced reporting capabilities: Real-time consolidation at local, regional, and global levels enhances the timeliness and accuracy of financial statements.

NetSuite Enterprise Performance Management

NetSuite Enterprise Performance Management (EPM) is an innovative product that works efficiently for financial processes and combines planning, budgeting, forecasting model development, and reconciliation of accounts during the financial close process. NetSuite EPM is an extensive and dynamic tool that connects with its counterpart platform for fast financial information to the entire enterprise.

NetSuite EPM solves the problem of a complete solution and targets key issues that organizations have. It addresses ineffective budgeting and forecasts, providing a uniform center for simplified financial planning. 

Benefits of NetSuite Enterprise Performance Management 

  • Accuracy: The platform automates account reconciliation, thereby minimizing errors resulting from manual processes to ensure the accuracy of the financial records. 
  • Simplified finances: It has made it easier to simplify closed processes of complex finance and limitations in reporting abilities are removed, which gives the opportunity to realize information from their accounting data. NetSuite EPM is an essential capital for businesses that guarantee financial proficiency and provides them with the means to traverse the shark-infested waters of modern finance administration.
  • Better insights: The ability to aggregate data in a single system gives businesses a sustainable, accurate, and unified view of financial information, allowing them real-time insights for making the right decisions.
  • Automation: The platform automates all financial close processes, saving users’ time and eliminating errors; it has rich functionality to address strategic planning, account reconciliation, tax reporting narrative reports, or profitability analysis. 

How Do You Determine The Netsuite Pricing For Your Business?

NetSuite is a highly customizable platform designed to cater to a wide array of business needs. Its capabilities are extensive, covering a spectrum of functionalities. Without a clear understanding of your specific business requirements, it becomes challenging to estimate the precise cost of implementing NetSuite.

Several factors contribute to the overall cost of implementing NetSuite for your business. To provide you with a general idea, consider the following cost guidelines:

1. Number of NetSuite User Licenses:

The pricing structure often depends on the number of user licenses your business requires. Assess the size of your team and determine the appropriate number of licenses to meet your operational needs.

2. Size of Your Company:

The scale of your business is a key determinant. Larger enterprises with complex structures may require more extensive NetSuite configurations.

3. NetSuite Add-On Modules:

NetSuite offers various add-on modules to enhance functionality. The inclusion of these modules, such as advanced reporting or e-commerce capabilities, will contribute to the overall cost.

4. NetSuite Customizations:

Customizations tailored to your business processes may be necessary. These can range from simple configurations to complex integrations, influencing the overall implementation cost.

5. Scope of NetSuite Implementation:

The breadth of NetSuite implementation, including the modules and features activated, plays a significant role. A more comprehensive implementation may incur higher costs.

6. Ongoing Training & Support:

Continuous training and support are essential for maximizing the benefits of NetSuite. Consider the long-term costs associated with maintaining and upgrading your team’s skills.

Gain Control of Your Business Resources with Onboard

The success of implementing NetSuite ERP goes beyond the initial adoption phase. A well-structured ERP Training Plan is essential for sustained success. The ERP Training Program by emphasizes strategic planning, meticulous training delivery, and fast post-go-live support. By addressing change management, project training, planning, and creating personalized training materials, we help organizations ensure a smooth transition and maximize user adoption. 

Onboard’s experienced consultants offer a comprehensive solution, aligning ERP training with specific business processes, with flexibility, and providing ongoing support. This meticulous planning not only minimizes the risk of time and budget overruns but also ensures a prepared and confident workforce, ultimately maximizing the return on thebusiness functions ERP system investment!

Common Questions Answered about NetSuite ERP

Q1: What is NetSuite ERP’s feature that allows for better collaboration within an enterprise?

The NetSuite ERP encourages teamwork through single-platform accessibility by all users in such or other departments. This makes it possible to transfer information, data, and insights in real time, leading to effective team communication and coordination.

Q2: Does NetSuite ERP support various dealings of multi-location and international operations?

Yes, NetSuite ERP is built to address multi-station and foreign activities. It offers capabilities for global financial management, multiple subsidiaries, and rules-based compliance, making it appropriate for companies with a global footprint.

Q3: How does the system NetSuite make use of automation?

NetSuite ERP automation is one of its core elements. The system eliminates routine tasks and key business processes such as invoicing, order processing, and inventory management through automation, reducing manual processes that allow a business to reduce workload while improving accuracy and enhancing operational effectiveness.

Q4: How does NetSuite ERP contribute to better decision-making?

The robust reporting and analytics tools that NetSuite ERP creates are very helpful in obtaining information in real time about various aspects of operations within a business. This data-driven approach aids organizations in making decisions based on intelligence from the past few years and helps them identify trends that should form part of the marketing campaigns and strategies being engaged with; things are done fast using accurate information and real-time data.

Q5: How does NetSuite ERP handle e-commerce and order management?

The NetSuite ERP also has e-commerce integration and order management implementations. It simplifies the sales cycle hunt by connecting and controlling order and customer relationship management, fulfillment activities, and inventory coherently. It helps to ensure that the entire sales cycle is handled smoothly and in an efficient manner.

Q6: Can the NetSuite cloud-based ERP system expand or be stretched along with the growth of a business?

Right; NetSuite ERP is a system built with scalability for modern businesses, as they grow. The cloud-based model can handle the growing needs and intensified complexity of scale encountered when organizations expand without infrastructure transformation.

Joanne Harrison
Joanne Harrison
Director of Sales

Joanne has worked for Onboard’s parent company Optimum since it was established back in 1998 and has progressed through the organization to Director of Sales. She has overall responsibility for business development and leading the growth of the company. Her role is to expand the value proposition to our clients and target markets, identify new markets, implement strategic partnerships and build valuable relationships with existing clients and system partners.

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