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Item expiry Management through NetSuite- A Case Study

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About the client– one of the leading warehousing company based out in US, managing over 4000 inventories and supply chain for products from apparels to home appliances and furniture, had chosen NetSuite after evaluating more than 15 ERP solutions available worldwide. The client deals with all the leading brands and have strong logistics and distribution strength to compliment their business and supply chain management operations.

netsuite-ERP component

Client’s business challenges:

In order to manage the stock and inventory positions to meet the projected business demands, the client had below business situation to meet the supply, demand and customer servicing.

1. A significant portion of the items inventories of the warehousing company have very limited shelf life  because of the perishable nature of goods and closer expiry dates.

2. The warehousing company can receive a shipment of a given item with a mixture of products from several manufacturing companies with different batches, that means the shipment has products with several expiry dates.

3. It is NOT feasible for the warehousing company to capture all the product expiry data while receiving the goods because of time &  human resource constraints.

4. It is NOT feasible for the warehousing company  to store the items basis the expiry date  because of the space constraints.

5. The warehousing company plans to treat each shipment as one batch.  They will have to ensure that products are sold from earlier arriving shipments before they are sold from later arriving shipments, without paying attention to the actual expiration dates on products. FIFO (first in, first out)

6. To do this, each shipment received must be associated with a particular bin or location in the warehouse and each pick ticket must indicate the bin or location from which the goods should be picked.

7. Transfers from long term storage to the cash sales area would also take goods from the older shipment first.

8. Due to the high turnover of the warehousing company’s inventory, this approach should be proficient enough to ensure that perishable items do not expire by being “forgotten” in a corner or hidden away behind other goods.

Our Proposed Solution:

In order to meet the above mentioned business challenges of the warehousing company , inoday Consultancy Services adopted procedures as outlined below while implementing NetSuite ERP at the client’s end.

1) On GRN form, we created Inventory details automatically, according to current Date for Serial/Lot number Item (By script).

2) Placed store material in pre-specified bins.

3) In order to manage cash transaction – After Sales Order approval, Pick ticket generated automatically from system on FIFO basis.

4) Script will pick older Items first, and if 100% material not available with older bin or lot, than remaining material unit is picked from the second older bin or lot.

Conclusion – This implementation helped the clients by addressing the expiry, lot and maturity to ensure that Items do not expire by oversight. This was a fully automated process without any manual or human intervention to analyze what to pick.  There is no need to depend on human Intelligence and the process becomes autonomous, scalable and fast.

Consult inoday Consultancy Services  NetSuite implementation team to know more on how can we help your organization in optimizing the inventory and supply chain management challenges and meet the service standards of your organization,  at the same time by addressing to your item expiry issues which impacts the business profitability to a larger extent.

Recommended for #Perishable goods, #Order that contains large number of line Items, #Retailers, #Big ware houses.