NetSuite Inventory Management Demo
This NetSuite Inventory Management Demo shows how growing companies can move inventory replenishment off spreadsheets and into a single system that calculates what to order and when.
In this video, Steve Mowchan, Senior Solutions NetSuite Consultant at Terillium, walks through NetSuite's inventory management tools for a purchased item. Using an iPad Pro as an example, Steve demonstrates two replenishment approaches, Reorder Point and Time Phased, and shows how NetSuite's demand and supply planning tools use historical data to project future purchasing needs.
The video covers how these tools auto-calculate purchasing recommendations while still leaving room for manual overrides based on knowledge the system doesn't have.
Topics covered include:
Reorder Point replenishment, including reorder multiples and preferred stocking levels
How auto-calculate uses historical data to set purchase lead time and reorder points
Overriding system-generated recommendations to account for one-time or unusual orders
Time Phased replenishment and the Alternate Source Item feature for new products without sales history
Setting up and running an Item Demand Plan, including subsidiary, location, and projection method selection
The four demand projection methods: linear regression, moving average, sales forecast, and seasonal average
How historical duration settings affect demand plan accuracy
Editing demand plan quantities before generating a supply plan
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Key Questions Answered
What is the difference between Reorder Point and Time Phased replenishment in NetSuite?
Reorder Point is the more straightforward method. NetSuite generates a purchase order suggestion once inventory drops to a set level, taking into account reorder multiples and preferred stocking levels. Time Phased is the more advanced option, incorporating demand and supply planning along with features like the Alternate Source Item for products without their own sales history.
How does NetSuite calculate reorder points and purchase lead time?
NetSuite can auto-calculate reorder point, purchase lead time, and preferred stocking level based on historical order data, with users able to choose how much history to factor in, anywhere from a few months to a couple of years. Companies newer to NetSuite or without much historical data can set these fields manually until enough history builds up. Users can also override any system-generated recommendation to account for one-time or unusual purchases.
What projection methods does NetSuite use for demand planning?
NetSuite offers four projection methods for calculating an item demand plan: linear regression (for products trending up or down over time), moving average (a flattened average over a set historical duration), sales forecast (based on sales team input rather than historical data), and seasonal average (which reflects seasonal highs and lows, with the option to adjust for year-over-year growth).
What is the Alternate Source Item feature in NetSuite?
Alternate Source Item lets a business plan demand for a new product that has no sales history of its own by basing its projections on an existing, similar item. This means a new product in an already established line or category can use another item's historical data from day one instead of starting demand planning from scratch.
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