This year has helped to expose even the smallest weaknesses in supply chains around the world. As a result, many companies are reevaluating their supply chains to understand how they can adapt and become more resilient to constant changes and unpredictable demand.
NetSuite has completely re-designed its approach to the supply planning process, most significantly with the addition of materials requirements planning (commonly referred to as MRP)(opens in new tab) functionality, which increases supply planning insight and efficiency.
With more robust functionality, the new and improved supply planning tools will provide product companies the adaptability and agility needed to successfully manage their supply chains.
MRP Increases Efficiency with What-if Scenario Planning
What-if scenario planning helps businesses get the right products in the right place so that they can increase fill rates, reduce stock outs and ultimately drive customer satisfaction. Many organizations today store products across multiple locations. What-if analysis gives you the tools to understand how to best use your inventory.
Using scenario planning, businesses can mock up multiple scenarios and identify if it’s possible to speed up delivery by, for example, making changes to where goods ship from, and when.
With NetSuite MRP, you can set supply planning criteria, including the planning horizon, included items, locations and planning rules at the plan level vs. the item level. This allows businesses to build multiple hypothetical plans and run what-if scenarios to understand how changes will affect inventory levels and their ability to meet demand.
MRP Saves Planners Time and Resources
MRP consolidates planning information into a single screen, referred to as the planner’s workbench. This allows planners to:
- Evaluate actions and exception messaging
- Identify and react to supply and demand mismatches by pulling in, pushing out or cancelling orders
- Review recommended purchase orders, work orders and transfer orders and release those planned orders for execution
- Drive an approval workflow so that the appropriate departments are involved in reviewing, approving and implementing any changes required, such as initiating a transfer order
The analysis is delivered in a logical layout that supports the decision-making process. With full pegging support, planners are also able to drill into supply and demand across locations for an item.
MRP Provides a Dedicated Planning Repository
If you are planning in real-time, with transactions or targets constantly changing, you may wind up over-reacting to small changes. The dedicated planning repository allows you to control the timing of the data you want to use within the ERP system and schedule data updates so that you’re getting more consistent, timely and predictable information with which to make decisions.
Better Supply Allocation, Happier Customers
As a part of the supply allocation functionality, you’re able to allocate inventory that has already been received and also inventory that you anticipate receiving, whether that's on a work order or coming in from a transfer order or even coming in from a purchase order. You’re also able to allocate inventory that's coming in on an inbound shipment, which is basically a collection of purchase orders that are managed on an individual shipment basis. This allows customer service reps validate supply and identify the earliest date an order can be filled.
Hear more from Industry Principal, Matt Wisner, on the new functionality aiding supply chain optimization and operational excellence in our latest podcast: NetSuite 2020 Release 2: Supply Chain/WMS Updates(opens in new tab).
Learn more about 2020 release 2 updates for the supply chain and WMS by tuning in to “The NetSuite Podcast.” Listen on Apple Podcasts(opens in new tab), Spotify(opens in new tab) and YouTube(opens in new tab).