Just-in-Time Supply, Mfg and Fulfillment Suite
AUTOMATED REAL-TIME AVAILABLE TO PROMISE
AUTO RE-PRIORITIZE SALES ORDERS / BUILDS
AUTOMATED PURCHASE and WORK ORDERS
AUTO-UPDATED EXPECTED SHIP / BUILD DATES
AUTO JUST-IN-TIME INVENTORY COMMIT by PRIORITY
REQUIREMENTS
An international manufacturer and distributor of industrial hydraulic equipment serves manufacturing and resale customers that manage their own just-in-time delivery.
Client must maintain a light inventory and nimble manufacturing process for finished goods to keep inventory and warehousing costs down, therefore order acceptance and fulfillment is very dynamic and complex, and critical for success in a very competitive international marketplace.
Some customers carry higher priority over others, but every sales order line item includes a specific Requested Due Date (RSD) for the entire line quantity, which may be months or only days away. Therefore, available inventory and manufacturing must be carefully managed to commit orders based on a priority algorithm.
Accordingly, each order line item in NetSuite requires an Inventory Commit Priority and Expected Ship Date (ESD) to present to customers as orders are accepted and as changes in supply or demand dictate. The algorithm must run frequently and include these complex and dynamic factors:
Vendor supply statuses by warehouse location for finished goods and parts inventory (Avail, On Order, purchase lead time)
Manufacturing statuses for finished goods and sub-assemblies (WIP and scheduled production) and lead-time to build (available to build, production schedule and capacity).
Pre-existing Sale Order demand statuses and Priority, RSD, and other proprietary rules, that must be auto-applied to each order line but allow for manual override, including locking into place.
Each ESD must factor in packing and shipping business days required for customers to receive shipments by the RSD.
Of course, vendor supply and manufacturing schedules and capacity is dynamic and can change, plus competitive pressure to deliver on customer shipment requests is strong, so order Priority and/or ESD may be impacted and require change.
A very simple example of the requirement - a new order item with a near-term due date will take priority for available or near-term inventory if a previously received order can still meet its RSD (full quantity). If subsequent changes to supply will cause Order 1 to miss its RSD, then inventory will be re-prioritized to Order1, and the Order 2’s priority and ESD will be downgraded.
ISSUES
Client was convinced of the value of NetSuite as a cloud-based multi-subsidiary accounting system, but NetSuite could not support complex requirements like these without comprehensive and robust custom solutions. NetSuite Professional Services declined the effort. Thus, Client insisted on a custom solution proof-of-concept before acquiring NetSuite, and the approved solution to be built, tested and trained before launching NetSuite.
SOLUTIONS
We designed and mocked up a comprehensive proof of concept well within Client’s deadline, and NetSuite was acquired. In place since 2012, the solution has dramatically reduced labor hours and error, while significantly improving manufacturing and procurement cost, efficiency and customer satisfaction. The final solution design and build suite included the following custom frameworks, automations and applications:
Commitment Priority for a SO line’s Expected Ship Date is automatically recalculated and applied with every new or edited SO, PO, WO, TO, Receipt, Commitment, Fulfillment.
Supply side automations create a Special Work Order or Special Purchase Order when demand exceeds inventory on order or work-in-progress, depending on which can fulfill the order just-in-time most accurately, within managed tolerances, including accounting for variable packing and shipping (international or domestic).
Custom manufacturing schedule and capacity architecture with custom work order scheduling automation streamlines management processes (see PRODUCTION CAPACITY FRAMEWORK AND SCHEDULING below))
Inventory is auto-committed to Sales Order line items nightly, just-in-time for packing and shipping, per the Item line’s Priority and Requested Due Date
