Fulfill orders from all subsidiary locations

What is NetSuite Cross-Subsidiary Fulfillment?

NetSuite cross-subsidiary fulfillment enables companies to easily define which subsidiaries and locations can trade with one another and under what conditions. This empowers operations teams to make optimal use of inventory. And, assigning individual lines on a sales order for fulfillment and shipment from multiple locations, across multiple subsidiaries, lowers shipping costs and minimizes the need for drop-shipping and intercompany transfers.

NetSuite Cross-Subsidiary orders dashboard

NetSuite current inventory snapshot

Optimize Inventory Utilization

With the ability to fulfill orders from all locations, each site can hold less stock, decreasing overall inventory on hand.

Customize Fulfillment Rules

Company-defined rules to automatically select the locations items should ship from, based on factors including geographic location and inventory availability, ensure orders are fulfilled from the optimal location.

NetSuite global inventory relationship dashboard

We have seen a 20% improvement to employee productivity since implementing NetSuite WMS and the related process changes.

Phil Negri
CFO, Action Health

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NetSuite Cross-Subsidiary Fulfillment Benefits

  • Fulfillment Optimization. Decrease shipping costs and minimize the need for drop shipping and intercompany transfers.
  • Reduced Complexity. Lines on a sales order are automatically assigned to a location for fulfillment, eliminating the need for transfer orders.
  • Easier Accounting. As part of the accounting period close process, cross-charges are automatically generated for all multi-subsidiary transactions.

NetSuite Cross-Subsidiary Fulfillment Features

NetSuite cross-subsidiary fulfillment allows you to fulfill orders and receive returns from any location, regardless of where an order originated.

Location Assignment

Companies can assign subsidiary locations to sales order lines automatically based on predefined rules that take location into account. Select individual subsidiaries or all subsidiaries, as well individual locations or all locations to fulfill from.

NetSuite sales order dashboard

Inventory Relationships

Optimizing inventory across all locations, selling channels and subsidiaries means organizations need less stock overall and keeps overhead costs low. Define fulfillment policies to automatically select the optimal locations to fulfill from. Global Inventory Relationship records define relationships between subsidiaries and their associated locations and ensure items are assigned for fulfillment from the closest location, minimizing shipping costs.

NetSuite global inventory relationship dashboard

Cross-Charge Transactions

Cross-charge transactions handle the complex intercompany accounting required for cross-subsidiary fulfillments. As part of the accounting period close process, cross-charges are automatically generated for all multi-subsidiary transactions.

NetSuite cross-charge workbench dashboard

Returns Process

Extending a seamless customer experience to the returns process is a prime way to increase customer loyalty. Make the process simple by accepting returns from any channel, at any location. Once a return material authorization (RMA) is processed, items can be received back into inventory in one or more locations, across any subsidiary. Customer expectations are met, and items are returned to inventory without delay.

NetSuite return authorization dashboard

Challenges NetSuite Cross-Subsidiary Fulfillment Solves

  • Lost Sales. Avoid lost sales due to stockouts. Online orders are processed as long as there is sufficient inventory to fulfill the order at a related subsidiary.
  • High Shipping Charges. Shipping directly from the original location avoids the costs associated with cross-company transfers to fulfill customer orders.
  • Accounting Errors. Cross-charges are automatically generated for all multi-subsidiary transactions, ensuring accounting records match.
  • Delayed Fulfillment. Transferring items from one location to another takes time and ultimately delays order fulfillment. Items sent from their original locations get to customers more quickly.

How Much Does NetSuite Cross-Subsidiary Fulfillment Cost?

Companies of every size, from pre-revenue startups to fast-growing businesses, have made the move to NetSuite. Looking for a better way to run your business but wondering about the cost?

Users subscribe to NetSuite for an annual license fee. Your license is made up of three main components: core platform, optional modules and the number of users. There is also a one-time implementation fee for initial setup. As your business grows, you can easily activate new modules and add users — that’s the beauty of cloud software.

Cross-subsidiary fulfillment capabilities are included with NetSuite WMS, which is available as an add-on module.

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