This may come as no surprise, but a common pain point we at GURUS hear frequently mentioned by our clients is the struggle for effective inventory management.

And why would it?

It’s logical that as a company grows within their respective industries, (for example: Manufacturing, Wholesale Distribution, Retail, etc), and their inventory expands, either in variety or quantity, the management of that inventory becomes more and more complex.

Do you require multiple warehousing facilities to hold and sort your inventory? What process do you utilize when receiving new inventory?

With your current ERP system, or inventory management software, how easily could you track down a specific item across warehouses, retail stores, pop-up shops, drop shippers, 3PLs or any other place where you manage or stock inventory?

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If you’re reading this, you’re either currently a NetSuite user or you’re looking into NetSuite as an Enterprise Resource Planning (ERP) solution for your business.

So that means you may, or may not, already know that Oracle NetSuite ERP provides industry specific, out-of-the-box solutions with their industry leading Inventory Management Cloud Solution already provided.

But, what is Inventory Management for NetSuite? How can Inventory Management truly improve your business? And, how can you get the most out of your Inventory Management module?

Continue reading to find out.

What is Inventory Management for NetSuite?

NetSuite’s Inventory Management provides a single, real-time view of inventory across all locations and sales channels. This allows businesses to reduce inventory on hand to free up cash while avoiding stockouts.

Here are some key benefits:

How can Inventory Management improve your business?

It goes without saying that effective inventory management can help save you money. In fact, we’ve already written about the top tips that can help maximize your savings with efficient inventory management. But here are the benefits provided to you from NetSuite’s Inventory Cloud solution:

Customer Churn Rate (CCR)

The rate customers stop doing business with you. The typical formula would be:

CCR = number of customers churned - (customers who joined and churned) - (customer who churned & returned) in the defined period / number of customers at start of period.

Monthly Recurring Revenue (MRR)

The percentage of lost monthly revenue from downgrades and cancellations in a given period. This is typically calculated as both Gross and Net Revenue, an essential metric to evaluate the financial state of the business. Typical formulas are:

Gross MRR = (Churned MRR + Downgrade MRR / MRR at the end of the previous month) * 100
or
Net MRR = (Churned MRR + Downgrade MRR – Expansion MRR) / MRR at end of last month

Annual Run Rate (ARR)

Forecasts future earning revenue based on historical MRR assuming no changes in churn and expansions. Typically the formula would be:

ARR = revenue in period X * Number of periods of X in 1 year

Customer Retention Rate (CRR)

Measures the number of customers a company retains over time. Typically the formula would be:

CRR = [(number of total customers at end of period X - number of new customers added within period X) / number of existing customers at start of period X] * 100

In addition to churn specific KPIs, subscription-based companies further analyze the state of their customer base by calculating periodic and long term value and cost to get a fuller picture of the health of their business.

Popular SaaS KPIs to consider include Customer Lifetime Value, Customer Acquisition Cost, CAC:LTV Ratio, Net Promoter Score, Payback Period, Annual Contract Value, among others…

Automate Inventory Tracking and Order Management

Spreadsheets and pen and paper are not efficient or accurate ways to track inventory. NetSuite automates inventory management in one unified solution, making it easy to track inventory across multiple locations.

Ultimate Inventory Visibility of Stock Levels for Inventory Control

Real-time inventory visibility across all company locations is key to enabling a buy anywhere, fulfill anywhere customer experience.

How can Inventory Management improve your business?

Cloud-Based Benefits

NetSuite Inventory Management is deployable as a cloud-based solution, which has many advantages compared to on-premise strategies. The cloud can help users protect their documents, access information from anywhere and keep their software up-to-date.

Improved Accuracy

With NetSuite’s Cloud solution, you can create refined spaces that will help increase fulfillment accuracy and product locating.

Increased Customer Satisfaction

NetSuite's inventory management features can help improve customer satisfaction by making it easy to track and procure products. This can help shorten fulfillment times and improve communication with customers.

Automate Tasks

This platform can help with inventory management by automating some of the more tedious tasks, employees can spend more time on vital planning and other important forecasting tasks.

Better Visibility

NetSuite's Inventory Management tool gives users visibility into their daily inventory management processes, so they can identify problem areas and plan ahead to avoid future issues.

Did you know?

GURUS has been an Oracle NetSuite partner for over 15 years, and we pride ourselves in being a hub of knowledge for everything related to NetSuite.

If you’ve ever had a question about basic NetSuite functions including how to create an invoice, how to create a sales order, or how to change your password, you can check out our How To Video guide section to learn more.

How to get the most out of your Inventory Management module

What’s the use of maximizing your inventory management efficiency if you aren’t able to properly report on it.

That’s why we at GURUS recommend Business Intelligence (BI), to get the most out of your NetSuite module.

Why?

In our experience we’ve realized how important it is for businesses to visualize all their NetSuite ERP information, and that they had complex and strategic reporting outside of the NetSuite ERP platform.

At the time, there weren’t any existing tools that allowed you to connect your outside data with NetSuite in a cost-effective manner ‒ that’s why we developed GURUS BI.

You can use business intelligence to draw data from your systems and channels into NetSuite, and the data will automatically display and update in an embedded dashboard in your NetSuite account.

Check this out!

GURUS offers a free guided trial of our BI solution, so you can see how it will impact your specific needs and business. Check it out here, and apply today!

Want to Learn More?

Fill out the form below to request more information, and to speak to one of our Inventory Management specialists today.

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Inventory Management for NetSuite ERP, what you should know

What is Inventory Management for NetSuite?