The inbound shipment module of NetSuite, also often referred to as container management within different industries, allows for tracking and management of containers throughout their lifecycle.
From filling a container to taking ownership, to reception and eventually applying landed costs, NetSuite’s inbound shipment provides all this functionality.
However, we often see many of our clients requiring a more tailored approach to managing their incoming containers, along with a more detailed application of landed costs. This provides a more accurate representation of margins, a more meaningful analysis of cost trends, and a more complete management of item costs.
But what solutions have we created for NetSuite users, like you, and how have they benefited their day-to-day operations?
Continue reading for the 4 most common solutions GURUS has implemented within the context of NetSuite’s Inbound Shipment module.
Request More Info About NetSuite's Inbound Shipment Management
Custom NetSuite Inbound Shipment Solutions
Landed costs by volume
First, what are landed costs? Landed cost refers to the total expenses incurred in getting goods to their final destination, which includes duties, taxes, and any other fees associated with the shipment.
NetSuite’s native inbound shipment functionality allows for the application of landed costs by weight, quantity, and by value. However, the most common request we get is the application of landed cost by volume, often used in the context of applying freight charges.
GURUS has customized the inbound shipment functionality to allow the landed costs to be applied by volume, leveraging values on the item records to facilitate the calculation. This landed cost method can be applied to all cost category types, or only a select few.
Exchange rates and expanded cost categories for landed costs
With globalization, GURUS has seen many clients deal with inbound shipment scenarios that deal in multi-currency costs for their shipments. To get an accurate measure of the impact these exchange rates have on the landed cost of their items, GURUS developed the ability to convert and apply landed costs from the currency of their choice, with the exchange rate of their choice.
Also, different levels of exchange rate automation can be applied, depending on your requirements.
Automated lot creation on reception
Receiving high volumes of inbound shipments with lot items can be extremely time-intensive and highly prone to error. GURUS has automated this process by automatically creating lots on reception of the container, based on a pre-defined logic.
This allows for a seamless reception of the container without being bogged down by NetSuite’s native lot creation process.
Integration with a warehouse management system (WMS)
There are many different levels of integration, from out-of-the-box connectors to full integrations through middlewares like Boomi or Workato. Most of these integrations don’t consider the impact they will have on the inbound shipment process, as it’s a process that lives in both systems.
GURUS has developed best practices and custom configurations to allow the process to run smoothly, including developing the integration itself.
Real Use Case: How GURUS Solutions Optimizes NetSuite Inbound Shipments
Challenge:
- Inaccurate margin representation due to a lack of detailed application of landed costs.
- Inefficiency and high potential for errors in manually creating lot numbers upon container reception.
- Inadequate integration with their existing warehouse management system (WMS), leading to disjointed processes.
- Inability to apply landed costs by volume, which is crucial for accurately applying freight charges based on the size of the shipment rather than just its weight, quantity, or value.
These challenges result in a time-consuming process that is prone to errors, hindering the company's ability to make informed decisions based on accurate cost analysis and manage its item costs effectively.
Resolution
- A more accurate and detailed application of landed costs, leading to better margin representation and cost trend analysis.
- A significant reduction in time and errors through automated lot creation, enhancing operational efficiency.
- A smooth integration with their WMS, ensuring cohesive and efficient inbound shipment processes.
- Improvements that will lead to more effective management of item costs, better decision-making capabilities, and enhanced operational efficiency.
Looking for more custom solutions?
Visit our Customizations landing page to see more custom solutions created by GURUS for NetSuite.
Extend NetSuite Inbound Shipment with GURUS Solutions
GURUS Solutions has been implementing and customizing NetSuite ERP for over 20 years across 2,500+ projects, with deep expertise in NetSuite's Inbound Shipment module, landed cost customization, container management, lot tracking automation, and integrations with warehouse management systems. Beyond NetSuite's native inbound shipment functionality, we've built purpose-built custom solutions that handle volume-based landed costs, multi-currency exchange rate management, automated lot creation on reception, and WMS integrations through middleware platforms like Boomi and Workato.
Contact GURUS Solutions to discuss your NetSuite inbound shipment needs and get started.
Frequently Asked Questions
What is a NetSuite Inbound Shipment?
A NetSuite Inbound Shipment is a record within NetSuite that tracks containers and their contents from the point of shipping through reception. It captures cost details (duties, taxes, freight, and other landed costs), item quantities, and container status, and is often referred to as container management in logistics and import-heavy industries.
What is landed cost in NetSuite?
Landed cost is the total expense of getting goods to their final destination beyond the item purchase price. It includes duties, taxes, freight, insurance, and other associated fees. NetSuite applies landed costs to item records so that inventory valuation and margin reporting reflect the true delivered cost.
How does NetSuite calculate landed cost natively?
NetSuite's native inbound shipment module supports landed cost allocation by weight, quantity, and value. Each method distributes the total landed cost across the items in a shipment based on the chosen metric.
Can NetSuite apply landed cost by volume?
Not natively. NetSuite's out-of-the-box options are weight, quantity, and value. Applying landed cost by volume (essential for freight-heavy or space-sensitive shipping) requires a customization like the one GURUS Solutions has built, which leverages volume values on item records to distribute costs.
Can NetSuite handle multi-currency landed costs?
With standard configuration, this can be limited. GURUS has developed a customization that converts and applies landed costs from your chosen source currency using a chosen exchange rate, with multiple automation levels available based on business needs.
Can NetSuite automate lot creation on receipt?
Not by default. Manually creating lot numbers on high-volume reception is time-consuming and error-prone. GURUS has automated this by generating lots on container reception based on pre-defined business logic, which eliminates the manual work and reduces errors.
Does NetSuite Inbound Shipment integrate with a WMS?
NetSuite offers several integration options with warehouse management systems, from native connectors to middleware integrations through platforms like Boomi or Workato. Most out-of-the-box integrations don't fully account for the inbound shipment process, which lives in both NetSuite and the WMS. GURUS builds custom configurations and integrations to keep the process cohesive.
What custom solutions has GURUS built for NetSuite Inbound Shipment?
GURUS has built four common custom solutions: landed costs by volume, multi-currency exchange rate handling for landed costs, automated lot creation on reception, and custom WMS integrations. These extend NetSuite's native inbound shipment module for businesses with complex logistics and cost accounting requirements.
