NetSuite for Manufacturing Enhancements for Outsourcing

NetSuite for Manufacturing with Outsourced Manufacturing

NetSuite for manufacturing enhancements builds on improvements in both visibility and control over production activities. The following enhancements are great for manufacturers who utilize outsourced manufacturers with the introduction of expanded outsourcing. Additional enhancements include quality management and a new mobile interface.

We’ve highlighted some NetSuite enhancements aimed at helping manufacturing businesses manage their outsourced work orders, purchase orders, bills of material, and the ability to adjust processes that are unique to your business.

Outsourced Manufacturing Benefits 

The new Outsourced Manufacturing released in NetSuite's 2020 R1 is significant for manufacturers. It synchronizes procurement with production transactions. Your NetSuite users can easily purchase outsourced assembly production from vendors. The system automatically consumes production components and will transfer them to your specified location. Your users can then create a Bill of Materials to capture the final assembly costs, including any outsourced production fees.

Outsourced Manufacturing also includes these functions:

• The system checks for any constraints between transactions (lowering quantities or charges) to keep them synchronized after you have edited an outsourced purchase order.
• NetSuite builds assemblies for the outsourced work order after receiving an outsourced item on a purchase order. The system uses components from your stock to contract manufacturers.
• Receive assemblies at any location within a subsidiary. The system automatically transfers finished products to the specified location.
• Utilize serialized or lot–numbered assemblies and components in NetSuite.
• To help improve inventory tracking, the Manufacturing Locations field is shown in the Vendor window/ Outsourced Manufacturing subtab. You 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 user to create a Standard Outsourced Purchase Order custom form for any outsourced assemblies and include the specific attributes for the outsourced production, including:

• Assemblies
• Outsourced Location
• Production Start and End Dates
• Bill of Materials, and any Revisions

The outsourcing form also displays the new Create WO column. When you check the Create WO box on an order line and then save the order, the system automatically creates a work order for this line and purchase order. Other enhancements include:

• The Create WO column displays a link to the new work order after you save a purchase order.
• A Create WO link appears in the Create WO column, however, if you did not check the Create WO box. You can prompt the system to create a work order for this order line.
• After you save a purchase order, you’ll see a Receive button appear in the purchase order. Clicking this button opens the Item Receipt window where you can receive production items from the purchase order.

Generally, you can enter outsourcing-related information in the work order Outsourcing subtab if you use supply planning and create outsourced items from work orders. The outsourced work order displays a Create PO link to create related purchase order 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.

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