Table of Contents
- 1 What is NetSuite Demand Planning?
- 2 Why Choose NetSuite Demand Planning?
- 3 Demand Planning In NetSuite Features
- 4 Supply Planning
- 5 Reorder Points
- 6 Material Requirements Planning (MRP)
- 7 NetSuite Demand Planning Benefits
- 8 FAQs
By leveraging NetSuite Demand Planning, manufacturing and distribution businesses can effectively predict future inventory needs based on historical demand, seasonality, open opportunities, and sales forecasting. This software solution helps production planners or supply chain managers pinpoint when to reorder items, and in check their quantities. This helps them optimize their stock levels, and enhance supply chain planning.
In short, Demand Planning in NetSuite offers improved forecast accuracy to help modern-day manufacturers and supply chain businesses that they have the right items on hand to fill orders without having overstock sitting idle on warehouse shelves, raising carrying costs.
You can witness improve forecast accuracy using four projection methods.
- Linear Regression
- Moving Average
- Seasonal Average
- Sales Forecast
All these methods are available right in the forecasting algorithm.
Business administrators can avail of the needed visibility into requirements, timings, and can avoid preordering or bringing in excess materials. With such capabilities, you can reduce carrying costs and the amount of cash tied up in inventory with Demand Planning in NetSuite.
With NetSuite Demand Forecasting, supply chain or distribution companies can evaluate expected orders and present that information in a variety of ways. The menu structure shows the interaction to compute request, audit request plans and overhaul where required; create supply plans, survey and alter plans; lastly produce buy, move and work orders. Organizations can produce actual transactions and avoid arranged orders whenever wanted.
You can make the most of this software solution to easily define multiple inventory locations with real-time visibility. Locations can be coordinated progressively, and worldwide organizations can characterize significant nations. During the planning process, the system can be set up to consequently make move orders between areas as the need should arise.
This software solution lets you easily define the parameters that affect each item.
These options may include
- Defining a product as being available to demand planning
- Finding an alternative for a new item with no sales history
- Establishing distribution network and category to which an item belongs to
Using NetSuite’s Distribution Resource Planning functionality, you can transfer inventory between locations without a hitch. Additionally, organizations may set extra planning parameters that influence either the way in which request is assessed or the way that arranged requests are created.
Production Planners can survey all causes of supply and oversee distributions to guarantee that high-need orders transport total and on time. This software solution for supply chain management comes with an intelligent inventory redistribution recommendations intended to divert assets from various unallocated arranges and satisfy need orders first while limiting impacts on different clients. Demand Planning In NetSuite assists in reducing the time required to plan, review and execute reallocations.
NetSuite Supply Planning determines the most effective way to satisfy the necessities spread out in the interest plan. The point is to find a harmony among market interest that empowers your association’s administration and monetary targets.
With supply plans, you get the automatic creation of a recommended schedule for buying or manufacturing of products, with a rundown of the suggested buy and work orders in light of expected request and lead times. This will mean there will constantly be items available to satisfy client orders when they come.
NetSuite Supply Planning is based on demand plans that facilitates generation of purchase, work, and transfer orders. This way, products are always available as customers want them. Three planning methodologies are applied to achieve this effectively.
With Reorder Points, NetSuite for Supply Chain Management generates a purchase, work, or transfer order to replenish inventory to a designated stock level. Here, your production planners can set this to calculate automatically, prompting NetSuite to calculate in historical data values like:
- Lead time from suppliers
- Item demand from sales
- Company-defined safety stock
NetSuite MRP renders extensive visibility into inventory requirements to meet evolving and changing demands. With such capabilities, you can optimize your inventory levels, and production schedules within stipulated time. This is a standard method for balancing supply and demand. Furthermore, NetSuite MRP streamlines the production process by determining what components, sub-assemblies, and raw materials are needed. Additionally, it streamlines when finished goods must be assembled based on demand and the bill of materials (BOM).
You can make the most of Supply planning insights along with NetSuite MRP to efficiently manage inventory, create production schedules, and deliver the correct products on time, and on budget.
- Increased and Optimized Inventory— You can drive optimum business benefits out of NetSuite Demand Planning by efficiently stocking and replenishing products based on sales. This helps you order inventory as needed, decrease overhead, and carry costs, and eliminate excess stock without a hitch.
- Profitability and ROI— With such capabilities, you can ensure that you have adequate stock to fill customer orders. Most importantly, you will know when to avoid going for excess that will go unsold or need to be discounted.
To predict future stock demand needs and ensure customers’ fulfillment without any hassle with NetSuite Demand Planning, you need to connect with a certified and award-winning NetSuite Partner in India—inoday.
Our NetSuite Consultants are available during standard business hours to help you comprehend the application, understand demand planning integrations with NetSuite, and see how it works for your business as well.
You can save both your time and cost with us and avail of an adaptive and highly scalable solution to scale up your supply chain management without any hitch.
Q1. How do I enable demand planning in NetSuite?
Ans. You can select Setup, then Company, and Enable Features. For detailed guidance, you can connect with an accredited and certified NetSuite Partner who can help you with implementation. Then, you can better comprehend the application.
Q2. What are the 4 steps of the demand planning process?
Ans. 4 crucial steps of Demand Planning Process include
- Using historical sales data to create a forecast
- Analyzing customer demands
- Managing and combining forecasts
- Re-analyzing the final data
Q3. What are the 3 major activities of demand planning?
Ans. When you will opt for Demand Planning, you will perform
- Statistical Sales Analysis
- Inventory Analysis
- Predicting Future Demands
Q4. What are 4 crucial elements of demand planning?
Ans. 4 Key elements of Demand Planning include Demand Prediction, Forecasting, Product Portfolio Management, and Trade Promotion Management.