Supply chain planning and management seeks to regulate the raw materials, goods, services, and equipment required to ensure delivery of finished products through either production or sales. Procurement is a fundamental component of supply chain management. Both procurement and supply chain management are based in planning strategy and operational flexibility.Oracle NetSuite excels in supply chain management and procurement planning as we shall see in this introduction of those features.
Source: Oracle NetSuite media source content
Oracle NetSuite supply chain planning empowers businesses to balance supply and demand with the right combination of cost controls, lead times, and service levels. By utilizing inventory management and demand planning techniques, along with a robust scheduling engine and predictive analytics, NetSuite supply chain planning gives businesses the tools to make informed decisions that ensure product availability while keeping excess inventory to a minimum, instilling a sense of control and confidence in their operations.
The NetSuite Supply Chain Control Tower tool simulates inventory supply and demand across your supply chain, helping logistics teams analyze capacity and plan inventory purchases and production. Forecast accurately using simulations for inventory and assembly/bill of materials items, including those with lot and serial numbers. Simulations show a running inventory balance based on sales orders and future stock levels and how changes to the BOM or production process will impact the business. Using predictive risk tools, planners can better understand how actions may affect future business processes.
Source: Oracle NetSuite media source content
Accurate supply and demand planning provides businesses with the reassurance that products are available as promised, minimizing stock-outs, missed sales, and unhappy customers. This sense of security and control over inventory is a key benefit of NetSuite supply chain planning. NetSuite Demand Planning helps businesses predict future inventory needs based on historical demand, seasonality, open opportunities, sales forecasts, and other metrics. By pinpointing when to reorder items and in what quantities, you optimize stock levels and enhance supply chain planning. NetSuite Demand Planning delivers improved forecast accuracy, ensuring you have the right items on hand to fill orders without having overstock sitting idle on warehouse shelves, raising carrying costs.
Source: Oracle NetSuite media source content
Supply planning accounts for all inventory on hand across all locations, allowing businesses to use stock most efficiently and keep overall inventory levels at a minimum, decreasing overhead and carrying costs. NetSuite supply planning capabilities help companies fulfill demand plan requirements—the objective is to balance supply and demand to achieve financial and service goals. Supply plans generate a recommended schedule for purchasing or manufacturing items and list suggested purchases and work orders based on lead times and expected demand. This ensures product availability and customer satisfaction.
Source: Oracle NetSuite media source content
Effective production planning ensures that all materials are available and in the correct locations, and that machinery and labor are scheduled accurately. This efficiency in planning and execution makes businesses feel organized and in control of their manufacturing processes, a key advantage of NetSuite supply chain planning. One of the most important aspects of scheduling is getting the correct information back from production to ensure that the production plan is continually updated for maximum productivity.
If you are having difficulties managing your supply chain and facilitating procurement for your sale or production business, check out Oracle NetSuite and turn planning into production and sales.
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