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Understanding Demand Planning in NetSuite

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Planning the supply chain is very important for product-based businesses. Having proper balance in demand and supply, enables organizations to have the right combination of cost control, lead times and service level. Built to support the manufacturing units, NetSuite offers a variety of features, functions, and processes, enabling businesses to have the right materials available—at the right time—in the right place. With the demand planning module, organizations can have robust inventory management. Demand planning module enables purchase managers to quickly measure the demand of the products based on historical data, sales forecasts, trends, and seasonal fluctuations.

With best-in-class capabilities for inventory management and lean business operations, NetSuite offers flexibility and control in setting timeframes, preferred stock levels, and other parameters. Built-in functionality of NetSuite helps in streamlining & automating tasks while enabling you to create supply plans, executing purchase and fulfilling work orders seamlessly. NetSuite provides a global time phase view which includes the current and future inventory position across the entire global supply chain. With this feature, organizations can easily see projected inventory along with any demand or supply which affects the supply chain across a time horizon. With NetSuite predictive analysis, you can easily identify any potential issues.

Supply Chain Control Tower enables you to

  • monitor your inventory, demand and supply across global supply chain
  • identify imbalances in future demand and supply with time phased view
  • filter results by Subsidiary and Location
  • drill-down into transactions to take action
  • export entire grid to excel for further analysis

Demand Management:- Demand Planning Module available in NetSuite enables you to calculate and predict demand based on historical demand, open opportunities and/or manually entered or imported sales forecasts. While generating a demand plan, you can incorporate preferred stock levels set on a company or on a per-item basis. Using linear regression, moving average, seasonal average, & sales forecast methods of projection; you can review and edit the forecasted demand before proceeding to supply planning.

Key Capabilities:

  • Analyze Historical Demand
  • Incorporate Sales Forecasts
  • Update by CSV Import or web services

Supply Management:- Once the demand plans are created, individual supply plan for specific items can also be created. NetSuite Demand Planning offers you recommended purchase orders or work and transfer orders based on the many settings found on the item record. Some of the methods to determine the number and size of the orders generated include a period of supply, lot for lot and fixed. NetSuite also assists users in making the right decisions and optimizing inventory levels by providing planning messages.

Key Capabilities:

  • Planned vs Actual Orders
  • Multi-Location Supply Planning
  • Vendor Management

Gross Requirements Inquiry:- It accurately models how expected sales and purchase orders will affect future inventory levels. Gross Requirement Inquiry provides an overview of progressive supply and demand cycle by listing quantities required and quantities supplied on each transaction date listed. Each date & transaction offers more-on-hand or less-on-hand quantity along with total on-hand quantity. This enables you to maintain the delicate balance of the “right” inventory.

Order Execution:- Demand Supply planning simplifies the creation of purchase orders, transfer orders & work orders while enabling users to notify in a number of ways which are listed below.

  • Reminders
  • Email alerts
  • Saved searches
  • Scheduled reports