The Advanced Inventory Management feature provides robust capabilities for efficient tracking of Lead Time, Safety Stock, and Seasonal Demand in relation to inventory items. These records not only present the available quantity for each item but also serve as an ongoing assessment tool for stock requirements, facilitating adjustments to replenishment orders.
Through the utilization of automated computations, you can maintain an optimal stock level, thereby reducing surplus inventory. However, there is flexibility to override or deactivate these calculations in exceptional situations. Furthermore, users have the option to deactivate advanced inventory management features for specific items, reverting Lead Time, preferred stock level, and reorder point to their last manually input values.
Upon activation of Advanced Inventory Management, data undergoes automatic calculation on the initial night, irrespective of the designated weekday for regular weekly recalculation.
To enable Advanced Inventory Management:
- Navigate to Setup > Company > Enable Features.
- Click the Items & Inventory subtab, and then check the Advanced Inventory Management box.
- Click Save.
NetSuite automatically activates the following features:
- Bar Coding and Item Labels
- Lot Tracking
- Matrix Items
- Pick, Pack, and Ship
- Serialized Inventory
- Multiple Units of Measure
When utilizing the Advanced Inventory Management feature, the following features are accessible but not automatically enabled:
- Advanced Bin / Numbered Inventory Management
- Advanced Inventory Management
- Bin Management
- Landed Cost
On the Inventory Management Preferences page, set up the defaults and intervals that your account uses for inventory management calculations.
To set up inventory management:
- Go to Setup > Accounting > Inventory Management Preferences.
- Complete the following fields:
- Default Lead Time
- Default Safety Stock
- Default Preferred Stock Level
- Order Analysis Interval
- Seasonal Analysis Interval
- Expected Demand Change
- Transactions to Consider
- Day of Week To Perform Calculation
- Demand Time Fence
- Planning Time Fence
- Click Save.
Note that if auto-calculated inventory management for an item is set and then disabled, the settings revert to the last manually entered value.
Assuming you have determined and fixed demand for inventory replenishment using an Order-Up-To policy, activating the Autocalculate box allows lead time to be calculated based on the past three purchases. The lead time can also be overridden. NetSuite calculates product demand from sales orders and opportunities, utilizing the Order Analysis Interval or Seasonal Analysis Interval based on the selection on the Inventory Management Preferences page.
The Estimated Demand Change setting can be used to adjust the demand from the calculated expected demand. Additionally, the amount of inventory to be ordered can be based on the difference between the preferred stock level and the reorder point, with the preferred stock level set manually or auto calculated by NetSuite based on the desired days of inventory on hand.
For further insights into the Advanced Inventory Management feature, please reach out to Concentrus today. Concentrus Cloud ERP Solutions, a leading provider of innovative cloud-based enterprise resource planning (ERP) solutions, including NetSuite, offers a range of services, including NetSuite price analysis, NetSuite training, and NetSuite integration services. Our experienced team of NetSuite experts is committed to assisting businesses in maximizing their investment in NetSuite through expert cost optimization and implementation strategies. Whether you require assistance with NetSuite implementation or ongoing support, Concentrus is your trusted partner.
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Concentrus is a leading provider of innovative cloud-based enterprise resource planning (ERP) solutions, including NetSuite. Our team of NetSuite experts offers a range of services, including NetSuite price analysis, NetSuite training, and NetSuite integration services. Our goal is to help businesses of all sizes maximize their investment in NetSuite by providing expert NetSuite cost optimization and implementation strategies. With years of experience as a NetSuite partner, our NetSuite administrators and NetSuite consultants are well equipped to help businesses of all sizes with their NetSuite consulting needs. Whether you're looking for a NetSuite consultant to help with your NetSuite implementation or you need ongoing NetSuite support, Concentrus is here to help.
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