Inventory Workflow
Using inventory features, you can monitor real-time information about your inventory costs, quantities, and asset values. With this information, you can make informed decisions about buying and selling your inventory.
The goal of inventory management is to get your product to your customer in the shortest amount of time and at the lowest cost. This helps maintain quality and customer service. One means to achieve this goal is continuous examination of inventory workflow processes and acting on your analysis.
The diagram below illustrates the processes of the inventory workflow cycle:
Inventory Workflow Processes
The processes in the inventory workflow are: Purchasing, Receiving, Manufacturing, Selling, Fulfilling, and Replenishing. This workflow is a cycle of procuring and then selling your items.
To analyze workflow processes, you must first understand the function of each process. Key points to consider about each process are discussed below:
Purchasing
Create purchase orders based on your replenishment needs to acquire items and materials to stock and sell. It is important to track purchase orders to know what items to expect, when to expect them and who to expect them from.
Tracking purchases also helps you make replenishment decisions, such as what, when, and how much to order. You can view the quantity on order on item records and on reports.
You can also give your vendors access to your account to view purchase orders you place with them.
For more information, see Purchasing.
Receiving
When vendors ship products you ordered, enter an item receipt to indicate that you added them to your inventory. Then, account for them as an asset to your company. Because your account integrates item receipts with inventory records, each receipt updates inventory to show accurate stock levels and valuations.
For more information, see Receiving Orders.
Manufacturing
After items and materials are received, gather components of kits and groups, or run a production to complete assemblies before you sell them.
You can also identify items and transactions with bar codes that enable you to process them more quickly and efficiently.
For more information, see Manufacturing Overview.
Sales
When you enter a sales order, the item is committed from your inventory available and reserved for that customer. Because sales are integrated with inventory records, the effects of each sale automatically update inventory records.
An item sale increases the quantity committed and decreases the quantity available. If you sell an item that you do not have in stock, selling the item also increases the quantity back ordered.
For more information, see Selling Inventory.
Fulfillment
Fulfillment physically takes items out of inventory and ships them to the customer.
Because fulfillment transactions are integrated with inventory records, the effect of each fulfillment on your stock is automatically updated. Fulfilling items decreases the quantity on-hand and inventory asset value.
For more information, see Fulfilling Inventory.
Replenishment
Having a clear understanding of your replenishment needs is an important function of streamlining your inventory. To replenish inventory, you examine your inventory needs and identify the products and ideal quantities to order.
You can determine replenishment needs by using item records and reports. Alternatively, NetSuite can assess stock levels and reorder information on item records, then suggest the items and quantities to order.
For more information on replenishment, review the following:
Inventory Workflow Assessment
To assess your inventory workflow, you need to access information about each process. Your account's integrated records and reporting makes it straightforward to get information about your inventory items and transactions.
Item records maintain real-time information about your inventory items, including stock on hand, quantities needed and the value of your inventory.
You can track inventory by examining item records, or use reports to determine how your stock levels are affecting your inventory workflow. See Inventory Reporting.