Let’s explore how NetSuite addresses some of the most pressing challenges facing manufacturers today.

Challenge 1: Inventory Management and Supply Chain Visibility 

According to the Association for Supply Chain Management, manufacturers that improve inventory accuracy by just 10% can reduce working capital requirements by up to 12%. 

How NetSuite Helps: 

NetSuite’s inventory management system provides complete visibility across your entire supply chain, from raw materials to finished goods. The system enables: 

• Multi-Location Inventory Tracking: Monitor inventory levels across warehouses, production facilities, and distribution centers 
• Demand Planning: Use historical data and forecasting to optimize inventory levels 
• Lot and Serial Tracking: Track materials and products through the entire production process 
• Vendor Management: Evaluate supplier performance and manage relationships efficiently
   

Real-World Impact: A midsize industrial equipment manufacturer implemented NetSuite’s inventory management system and reduced excess inventory by 23% while improving on-time delivery rates from 82% to 96%. 

Challenge 2: Production Planning and Scheduling 

Efficient production planning is essential for meeting customer demands while minimizing costs. A study by the Manufacturing Enterprise Solutions Association found that manufacturers with optimized production planning reduce production costs by up to 15%. 

How NetSuite Helps: 

NetSuite’s production planning capabilities help manufacturers: 

• Create and Manage Work Orders: Generate work orders automatically based on demand 
• Capacity Planning: Optimize resource allocation based on available capacity 
• Material Requirements Planning (MRP): Calculate material needs based on production schedules 
• Shop Floor Control: Track production progress in real-time

Real-World Impact: After implementing NetSuite’s production planning tools, a custom furniture manufacturer reduced lead times by 35% and increased production throughput by 28%. 

Challenge 3: Quality Control and Compliance 

Manufacturing quality issues can lead to costly recalls, damaged reputation, and lost customers. According to Quality Magazine’s Annual State of the Profession Report, quality-related costs typically account for 15-20% of sales revenue. 

How NetSuite Helps: 

NetSuite’s quality management features help manufacturers: 

• Define Quality Parameters: Set up quality control checks at each stage of production 
• Inspection Planning: Schedule and document inspections throughout the manufacturing process 
• Non-Conformance Management: Track and resolve quality issues 
• Compliance Documentation: Maintain records for regulatory compliance

   

Real-World Impact: A medical device manufacturer using NetSuite’s quality management features reduced defect rates by 42% and streamlined their FDA compliance process. 

Challenge 4: Cost Control and Profitability 

Manufacturing businesses often struggle to accurately track costs and identify opportunities for improvement. The National Association of Manufacturers reports that 67% of small and medium-sized manufacturers cite cost reduction as their biggest challenge. 

How NetSuite Helps: 

NetSuite provides powerful financial management tools that help manufacturers: 

• Standard Costing: Establish baseline costs for materials, labor, and overhead 
• Variance Analysis: Identify deviations from standard costs 
• Activity-Based Costing: Allocate costs based on actual activities 
• Profitability Analysis: Analyze profitability by product, customer, or project

   

Real-World Impact: A precision parts manufacturer implemented NetSuite’s financial management tools and identified $1.2 million in annual cost-saving opportunities within the first six months.