Managing a Manufacturing
Business With NetSuite
Transforming Your Business With the
Cloud
NetSuite for Today’s Manufacturers
Background
Performance
Founded 1998
Used by 16,000+ global organizations
Publicly traded on NYSE: “N”
World’s most deployed cloud ERP
Offices in 10 countries
Top 10 highest growth ERP solution
according to Gartner and IDC
1,700+ employees
NetSuite runs NetSuite
2012 revenue: $309M
Powers Manufacturers
#1 Cloud ERP Suite
MANUFACTURING
ECOMMERCE
SINGLE DATA
SOURCE
CRM+
ERP
© NetSuite Inc. 2013
www.AlticoAdvisors.com
The Evolution of a Manufacturing Business
MRP
Warehousing
Sales
Accounting
© NetSuite Inc. 2013
Order Management
www.AlticoAdvisors.com
…Leading to Pain for Manufacturers
Incomplete Business View
Business Complexity & Inefficiency
Lack of Timely, Necessary Info
Cost of Business Out of Control
© NetSuite Inc. 2013
www.AlticoAdvisors.com
The Suite Solves Issues Created by
the Manufacturing Hairball
Customers
CEO
CFO
MFG
Shipping
Manager
SINGLE
DATA
SOURCE
CRM+
Sales Rep/
Manager
FINANCIALS / ERP
Ecommerce
Manager
Production
Manager
Partners
Vendors
© NetSuite Inc. 2013
www.AlticoAdvisors.com
NetSuite Enables the 21st Century
Manufacturing Business
Complete Business View
Streamlined, Dynamic Processes
Anytime, Anywhere Access
Low Costs of Operations
© NetSuite Inc. 2013
www.AlticoAdvisors.com
Manufacturing Requirements
Driving Profitable Growth of Your Business
Strategic Business Goals



Focus on the Customer



Manufacturing Excellence



Profitable Growth



Run the Business



© NetSuite Inc. 2013
Real-time dashboards
Complete information
Industry’s best practices
o
360 view
VMI and fulfillment
Renewals and retentions
Demand planning
Integrated production planning
Actual costing and backflush
Pricing and cash management
Integrating demand and inventory
Reduction of IT expenses
Support for all business processes
Designed for mid-size and fast-growing Manufacturers
Integrated inventory, work orders, forecasting
www.AlticoAdvisors.com
NetSuite Delivers Tangible Benefits for Manufacturers
Improvement area
Business Result
Improved Inventory
Customers using NetSuite reported inventory
carrying reductions of an average of 20 percent.
Improved Purchasing
Productivity
Manufacturers using NetSuite were able to improve the
productivity of purchasers by an average of 35 percent.
Reduced IT Costs
NetSuite often displaced at least two on-premise
applications and their related support costs.
Improved Sales
Manufacturers on NetSuite reported sales increases of
up to 25 percent as a result of improved e-commerce
capabilities, increased customer satisfaction, and more
productive, informed salespeople.
Improved Margins
Visibility into pricing, availability, and demand, and the
ability to quickly make price adjustments by product or
class, enabled customers to actively manage margins,
both in purchase negotiations and sales
Source: Nucleus Research
© NetSuite Inc. 2013
www.AlticoAdvisors.com
Manufacturing Ecosystem
DESIGN
SELL
PRODUCE
SHIP
SERVICE
PLM
EDI
MES
3PL
SERVICE
Arena
Omnify
Autodesk
B2B Gateway
Liaison (Hubspan)
SPS Commerce
TrueCommerce
IQity
Celigo
Explore
Hubspan
Ozlink
Epiphany
Vertical Solutions
Click Software
SC
One Network
Coupa
Serus
CONFIGURATOR
ConfigureOne
Experlogix
Selectica
MAINTENANCE
AssetPoint
ADV SHIPPING
QUALITY
AssurX
Cebos
Oz Dev
Pacejet
Shipwire
DM
Shop Floor
WMS
ANT-USA
Valogix
NOVAtime
eBizNET
QSSI
Accellos
Softeon
HighJump
HR
SilkRoad
TribeHR
Other
RightAnswers
© NetSuite Inc. 2013
TMS
LeanLogistics
Pitney Bowes
FreightGate
Descartes
www.AlticoAdvisors.com
Manufacturing Success
© NetSuite Inc. 2013
www.AlticoAdvisors.com
Learn More About NetSuite
http://www.NetSuite.com/manufacturing
© NetSuite Inc. 2013
www.AlticoAdvisors.com
APPENDIX
© NetSuite Inc. 2013
Supporting Real Manufacturing Natively
WIP Tracking
Routings
Editable WO
Available to
Promise
Demand Planning
Standard Cost
© NetSuite Inc. 2013
www.AlticoAdvisors.com
13
Demand Planning
Maintain just the right amount of inventory to effectively meet demand
Reduce your time spent planning inventory
Built in functionality to create demand and supply plans
Integrated CRM provides for demand plan based on sales forecast
© NetSuite Inc. 2013
www.AlticoAdvisors.com
Demand Planning: Supply Plan
Easily turn plans into action by turning inventory plans into actual work
orders and purchase orders
© NetSuite Inc. 2013
www.AlticoAdvisors.com
Standard Costing
Expands cost accounting capabilities beyond LIFO, FIFO and Average
with Standard Cost
More easily identify cost-saving opportunities in production and
procurement
© NetSuite Inc. 2013
www.AlticoAdvisors.com
Available-to-Promise
Clear visibility into projected ship date during quote and order
process
Check Item Availability easily accessible from a quote, order or from
the item record
Instant view into:
Expected Ship Date
Quantity on Hand
Quantity Available
Quantity Committed
Lead Time
© NetSuite Inc. 2013
www.AlticoAdvisors.com
Manufacturing Work In Process
Minimize inventory holding cost, prevent stockouts, and maximize efficiency
Track manufacturing activities more closely with a new multi-step process:
Work Order Issue, Work Order Completion, and Work Order Close
WIP revaluation ensures WIP account is up-to-date when standard cost
changes
© NetSuite Inc. 2013
www.AlticoAdvisors.com
BOM Effectivity Dating
Easily manage changes to components so you plan, purchase, use, and
cost with the right components at that time
Specify Effective Dates and Obsolete Dates by individual components or in
Revision groups
Project standard cost of assembly cost with future revisions in the cost
rollup process.
© NetSuite Inc. 2013
www.AlticoAdvisors.com
Manufacturing Routing & Scheduling
Production managers can define scheduling parameters such as
setup time and run rates for each operation
Roll-up standard costs using assigned operations
© NetSuite Inc. 2013
www.AlticoAdvisors.com
Manufacturing Routing & Scheduling
Operational Planner/ Production Manager
Create complex assemblies with multiple steps
Establish supply plan based on manufacturing
scheduling requirements
Production Manager
Schedule and assign work centers to operations
Record progress of activities
Record actual machine and labor times
Cost Accountant
Assign labor and machine overheads
Develop costing templates
Track cost variances
© NetSuite Inc. 2013
www.AlticoAdvisors.com
Labor and Machine Time Entry
When users are recording completions for an order with routing, a new
operations tab appears for recording time and quantities completed against
the operation task
© NetSuite Inc. 2013
www.AlticoAdvisors.com
Introducing NetSuite 2013 Release 1 – Built to
Drive Greater Efficiency, Sales, and Success
For manufacturers and distributors, powerful new production routing &
scheduling capabilities plus enhancements to demand planning and shipping
help you optimize your operations and increase productivity
Manage and file taxes for OneWorld and global businesses more easily with
enhanced tax period management and electronic filing in eight new countries
New SuiteCommerce Advanced Storefront enables you to create rich,
engaging shopping experiences across any customer touchpoint
Clean list data is the cornerstone to effective marketing – leverage improved
data management to get the most your campaigns
Your employees can collaborate and communicate better than ever before with
new improvements to SuiteSocial
Carry secure data access to NetSuite in the palm of your hand with new twofactor authentication built on the industry-leading RSA SecureID platform
Perfectly tailor printed and emailed transactions with Advanced Transaction
Printing and build new customizations and applications more quickly with the
enhanced SuiteCloud IDE
© NetSuite Inc. 2013
www.AlticoAdvisors.com
23
Additional Features in 2013.1
ERP
• Component Where Used Inquiry
• Improved Support for Subassembly
Planning
• Periodic Lot Sizing
• Hazardous Materials Shipping
• Enhanced Visibility into Commissions
• Improved Tracking for Employee
Related Changes
• Effectivity Dates for Payroll
• Enhanced Global Payment
Management
• New Payment Gateway for Asia
Business Intelligence
• Enhanced Report Management
• Enhanced Auditability for Saved
Search and Reports
© NetSuite Inc. 2013
SuiteCloud Platform
• More Efficient Sandbox Management
• SuiteBundler: More Efficient SuiteApp
Upgrade Management
• SuiteBundler: Audit Trail for
SuiteApps
• SuiteBundler: Phased Release for
Managed SuiteApps
• SuiteBuilder: System Notes on
Customization Objects
• SuiteBuilder: Run as Role Option
• SuiteScript: Expose User Preferences
• SuiteScript: Advanced Scheduled
Script Management
• SuiteFlow: Time Triggered Actions
• SuiteFlow: Copy and Move Actions
• SuiteFlow: Support for Multi-Select
Fields
www.AlticoAdvisors.com
300% Annual Growth and FDA Compliance
with NetSuite
Challenges
Inadequate functionality to handle growth
Overview
Zero inventory and manufacturing controls
‒
Manufacturer of
gastroenterology devices
‒
Founded in 2008
‒
140 Employees
‒
Based in Alpharetta, GA
‒
Replaced Quickbooks
‒
NetSuite ERP, CRM,
Advanced Inventory and
eCommerce
Complex supply chain: China, Korea, EU, USA
NetSuite Benefits
Fully implemented in two months
NetSuite webstore delivers 15% of revenue
Configured Case Management for FDA compliance
Reduced 4 FTE IT staff and $8K per user license vs.
on-premise solution
“
NetSuite is the only Cloud based solution that was built from the ground
up. Salesforce.com, Great Plains and SAP BBD are all patch-up solutions.
© NetSuite Inc. 2013
www.AlticoAdvisors.com
”
Saved $100,000 Annually on Programming
Costs Alone
Challenges
Company growth outpaced 25-year-old AS/400 system
Cumbersome manual processes slowed customer
shipments
Larger customers were requesting automated order
and payment methods
NetSuite Benefits
Web-based software strengthens Schaeffer's
competitive advantage
Customer shipping time improved from 2.5 days to 1
day, with more accuracy
Overview
‒
Manufacturer of automotive oil
‒
Based in St. Louis, MO
‒
Founded in 1839
‒
NetSuite Replaced AS/400
‒
Chose NetSuite over SAP and
Microsoft GP
‒
Running NetSuite across ERP,
Order Management,
Purchasing, Inventory, and
CRM
Use of EDI order entry grew from 30% to 70% of orders
EFT payments grew from 2% to 15% of orders
“
We were becoming a big company, but we couldn't afford a big, integrated
ERP system. With NetSuite our competitive advantage is strengthened.
© NetSuite Inc. 2013
www.AlticoAdvisors.com
”