NetSuite for Manufacturers — 2020 Product Update, Tips, and Tricks

Outsourced Manufacturing Feature Synchronizes Procurement and Production in NetSuite for Manufacturers

NetSuite for manufacturers 2020 Release 1 builds on improvements in both visibility and control over production activities. This release introduces expanded outsourcing, enhancements in quality management, and a new mobile interface. These developments are great for manufacturers who utilize outsourced companies. 

We understand that your business has unique processes that may need to change with this new release. Below, we’ve highlighted some tips and tricks aimed to help manage outsourced work orders, purchase orders, bills of material, and more.

New Outsourced Manufacturing Feature

The new Outsourced Manufacturing feature synchronizes procurement with production transactions. NetSuite users can easily purchase outsourced assembly production from vendors. The system automatically consumes production components and transfers them to your specified location. Users can then create a bill of material to capture the final assembly costs, including any outsourced production fees.

Outsourced Manufacturing also includes these updated functions:

• NetSuite checks for any restrictions between transactions (lowering quantities or charges) to keep them synchronized after you edit an outsourced purchase order.
• After receiving an outsourced item on a purchase order, NetSuite builds assemblies for the outsourced work order. The system uses components from your stock to contract manufacturers.
• NetSuite allows your company to receive assemblies at any location within a subsidiary. The system automatically transfers finished products to the specified location.
• NetSuite utilizes serialized or lot–numbered assemblies and components.
• To help improve inventory tracking, the Manufacturing Locations field is shown in the Vendor window/Outsourced Manufacturing subtab. Users can click the double arrow icon to assign one or more physical locations to the vendor.
• Outsourced Manufacturing is compatible with NetSuite Supply Planning and Distribution Network.

The Outsourced Manufacturing feature also enables users to create a Standard Outsourced Purchase Order custom form for any outsourced assemblies. This custom form can include specific attributes for the outsourced production, including:

• assemblies
• outsourced location
• production start and end dates
• bills of materials (and any revisions)

The outsourcing form also displays the new Create WO column. Checking the Create WO box on an order line and saving the order causes the system to automatically create a work order for this line and purchase order. Other enhancements include the following:

• The Create WO column displays a link to the new work order after users save a purchase order.
• A Create WO link appears in the Create WO column. However, if the user did not check the Create WO box, they can prompt the system to create a work order for this order line.
• After saving a purchase order, a Receive button will appear in the purchase order. Clicking this button opens the Item Receipt window, where users can receive production items from the purchase order.

To use supply planning and create outsourced items from work orders, users can enter outsourcing-related information in the Work Order Outsourcing subtab. The outsourced work order displays a Create PO link to create related purchase orders similar to the Create WO box on outsourced purchase orders. If the purchase order is not created automatically, NetSuite will create outsourced purchase orders for Firmed Work Orders for vendors and subsidiaries.

NetSuite ERP software gives you the power to easily control inventory, provide end-to-end supply chain management, and optimize your business processes on a single, easy-to-use cloud platform. Don’t miss out on all the new NetSuite enhancements. As a 5-star NetSuite partner, Blytheco is here to help you transform your manufacturing business with NetSuite. To see a demo of NetSuite or speak with their team, visit, call 949.583.9500 or email today!