How to Enable Multi-Location Inventory in NetSuite for Manufacturing Operations

Key Takeaways

• Multi-Location Inventory is available as a standard NetSuite feature once enabled; final packaging and pricing depend on your subscription and add-on modules.
• Basic setup takes 2-4 hours; complex manufacturing implementations require 2-4 weeks
• Organizations report substantial annual savings from reduced freight, labor, and waste
• Many DIY implementations fail due to one critical step: closing all open orders before activation
• The feature enables real-time tracking across warehouses, production facilities, and distribution centers

Understanding Multi-Location Inventory in NetSuite for Manufacturers

NetSuite Multi-Location Inventory associates every inventory item and transaction with a specific physical location. For manufacturers, this means complete visibility into raw materials at receiving docks, work-in-process inventory across production work centers, and finished goods in distribution warehouses—all within the same unified system with real-time synchronization across locations.

The feature enables:

• Location-Based Inventory Tracking: Track raw materials, WIP, and finished goods independently for each facility with separate valuations per location
• Inventory Transfer Management: Execute inter-facility transfers using simple one-step transfers or complex multi-step transfer orders with manager approval workflows
• Location-Specific Reorder Points: Set unique replenishment parameters based on local production schedules and demand patterns
• Work Order Location Routing: Associate work orders with specific manufacturing locations and automatically decrement component inventory while incrementing finished goods at the designated warehouse

Unlike standalone warehouse management systems that create integration headaches, NetSuite's native approach provides unified inventory visibility without disconnected systems or complex integrations.

Initial Setup: Enabling Features for Multi-Location Inventory

Step-by-Step Guide to Feature Activation

Critical Pre-Activation Requirement: Close All Open Orders

Before anything else, look for a way to view all sales orders and filter for "Pending Fulfillment" or "Partially Fulfilled" status orders. Ship, bill, or manually close each order.

Oracle recommends fully shipping or otherwise closing all open orders before enabling Multi-Location Inventory. Skipping this can create avoidable cleanup work.

Step 1: Enable the Feature

• Login as Administrator and navigate to the company features settings
• Look for the Items & Inventory section
• Enable "Multi-Location Inventory" and save your changes
• Expected Result: Confirmation message appears; new "Location" fields now visible on item records, sales orders, purchase orders, and inventory transactions
• Time: 5-10 minutes

Warning: Once enabled and inventory distributed, this feature cannot be disabled without NetSuite Support assistance. Test in a sandbox environment first if available.

Step 2: Create Location Records

Navigate to your company location settings and create a new location record for each facility:

• Enter location name (e.g., "Main Manufacturing Plant," "Atlanta Distribution Center")
• Fill in physical address and contact information
• Enable the option to make inventory available for order fulfillment from this location
• For manufacturing: Enable bin tracking if monitoring warehouse zones within facility
• For e-commerce integration: Enable inventory availability in web store

Manufacturing Best Practice: Create parent/child hierarchy (e.g., "North America Manufacturing" parent with "Ohio Plant" and "Texas Plant" children) for consolidated reporting.

Configuring Location Records and Item Preferences

Step 3: Distribute Existing Inventory

For manufacturers with inventory across multiple sites, use the manual inventory distribution feature:

• Navigate to the inventory distribution transaction type
• For each inventory item, enter quantities for each location (raw materials to manufacturing plant, finished goods to distribution centers)
• Ensure totals equal current on-hand amounts (validation prevents errors)
• Time: 1-2 hours for 100+ SKUs across 5+ locations; consider CSV import for large inventories

Step 4: Configure Location-Specific Item Settings

Edit each inventory item and look for location-specific settings where you can configure:

• Preferred Location: Default fulfillment location for this item
• Default Return Location: RMA destination
• Reorder Point: Triggers purchase requisitions (e.g., 500 units at manufacturing plant)
• Preferred Stock Level: Target inventory (e.g., 2,000 units)
• Lead Time: Days to restock from vendors
• Safety Stock Level: Buffer inventory for production continuity

Set higher reorder points at production facilities to prevent manufacturing delays; lower levels at distribution centers relying on finished goods flow.

Managing Manufacturing Workflows Across Multiple Locations

Optimizing Work Orders for Distributed Production

For manufacturers with work orders, BOMs, and routing, Multi-Location Inventory integrates directly with production workflows. When creating a work order:

• Assign the work order to a specific manufacturing location
• NetSuite automatically decrements component inventory from that production facility
• Finished goods increment at the designated warehouse location upon completion
• Transfer orders can be triggered automatically when work orders complete at upstream locations

The Advanced Manufacturing module extends these capabilities with:

• Work center definitions by location
• Manufacturing routing sequences between locations
• Finite capacity scheduling per facility
• WIP tracking by location with labor costing

Streamlining Assembly Builds and Component Transfers

For manufacturers managing component transfers between production stages, configure transfer order workflows with automated manager approvals for controlled material movement. This is particularly valuable when:

• PCB assembly at Facility A feeds final assembly at Facility B
• Sub-assemblies require testing at a dedicated quality facility
• Finished goods move from production to regional distribution centers

Manufacturers implementing this approach have significantly reduced WIP tracking labor through automated location-based workflows.

Inventory Tracking and Control for Distributed Manufacturing

Ensuring Accurate Stock Transfers Between Sites

NetSuite provides two transfer mechanisms for manufacturers:

Simple One-Step Transfers:

• Immediate inventory movement between locations
• Best for internal warehouse-to-warehouse transfers
• No approval workflow required

Multi-Step Transfer Orders:

• Creates pending transfer requiring manager approval
• Tracks items in transit as separate inventory status
• Enables receiving confirmation at destination
• Supports landed cost allocation for inter-facility freight

For high-value items or intercompany moves, configure transfer order approval workflows to prevent unauthorized inventory transfers.

Leveraging NetSuite for Precise Inventory Adjustments

Accurate inventory requires regular validation. NetSuite supports:

• Cycle Counts: Schedule quarterly cycle counts at each location targeting high accuracy match rates
• Bin Management: Available with NetSuite WMS for warehouse-level control within manufacturing facilities
• Lot/Serial Tracking: Track lot numbers across locations for food, pharma, and electronics manufacturers
• FEFO Fulfillment: First Expired, First Out rules for perishable inventory

Food manufacturers implementing lot tracking with FEFO have achieved significant reductions in expired product write-offs representing substantial annual savings.

Optimizing Supply Chain and Procurement for Multi-Location Operations

Centralizing Procurement for Multiple Manufacturing Sites

With Multi-Location Inventory enabled, purchasing workflows become location-aware:

• Location-Specific Reorder Points: Each facility triggers purchase requisitions based on its own inventory thresholds
• Centralized Purchasing: Consolidate orders across locations for vendor volume discounts
• Direct Ship to Location: Purchase orders specify receiving location, automatically incrementing inventory at the correct facility

Managing Vendor Coordination and Shipping Destinations

Configure vendor records with location-specific preferences:

• Primary vendor for raw materials at Manufacturing Plant A
• Alternate vendor for Manufacturing Plant B (geographic proximity)
• Different lead times per location based on shipping distance
• Safety stock levels adjusted for vendor reliability by region

For manufacturers managing intercompany transfers across subsidiaries, NetSuite OneWorld extends Multi-Location Inventory with transfer pricing and elimination entries for consolidated financial reporting.

Financial Impact of Multi-Location Inventory

Accurate Costing Across Distributed Manufacturing

Multi-Location Inventory affects your financial records in several ways:

• Location-Specific Valuation: Track inventory value independently at each facility
• Transfer Pricing: Record transfers between subsidiaries at arm's-length pricing
• Landed Cost Allocation: Distribute freight, duties, and handling costs across transferred items
• WIP Valuation: Track work-in-process costs by production location

Advanced configuration options (available in Mid-Market/Enterprise editions) enable location-specific costing methods—critical for manufacturers with different cost structures across facilities.

Understanding the Financial Implications of Inventory Transfers

When inventory moves between locations:

• No revenue or COGS impact for internal transfers (same subsidiary)
• Intercompany transfers generate elimination entries
• Landed costs can be allocated to receiving location's inventory value
• General ledger automatically reflects location-specific inventory accounts

For manufacturers requiring landed cost implementation, the combination with Multi-Location Inventory provides complete visibility into true product costs at each facility.

Reporting and Analytics for Multi-Location Manufacturing Inventory

Creating Custom NetSuite Saved Searches for Inventory Insights

NetSuite Saved Searches become essential for multi-location visibility. Create searches for:

• Inventory by Location Dashboard: Color-coded stock alerts showing quantities at each facility
• Stock Transfer Summary: Pending transfers, in-transit inventory, completed moves
• Reorder Point Alerts: Items below threshold by location
• WIP Aging: Work orders open beyond expected duration by manufacturing facility

Configure saved search dashboards before go-live—users expect visibility immediately.

Utilizing SuiteQL for Advanced Multi-Location Data

For complex reporting needs, SuiteQL provides SQL-like query capabilities:

• Cross-location inventory comparisons
• Historical transfer analysis
• Production facility utilization metrics
• Custom KPIs like "Time to Fulfill Sales Order" by location

Enterprise Edition includes Supply Chain Control Tower dashboards for real-time visualization across all locations—particularly valuable for manufacturers with 10+ facilities.

Common Challenges and Best Practices for Multi-Location Inventory

Addressing Data Synchronization Issues

Common implementation challenges manufacturers face:

Can't enable feature: "Open orders exist" (Very Common)

• Run transaction search for open orders and close all manually before proceeding
• This is the most frequent blocking issue during activation

Inventory distribution fails: "Negative quantities" (Common)

• Create inventory adjustments to bring all items to zero or positive balances
• Verify all transactions are properly posted before distribution

Transfer orders not routing correctly (Occasional)

• Verify order management fulfillment preferences are properly configured
• Check location-specific item settings for correct default locations

Items missing from location dropdowns (Common)

• Edit item record and verify "Make Inventory Available" is checked for each intended location
• Confirm location records have inventory availability enabled

Implementing Effective User Training Programs

Technical setup is 30% of success; user adoption is 70%. Invest in role-specific training:

• Warehouse Staff: Receiving/transfer training (2-3 hours)
• Purchasing Teams: Reorder point configuration (3-4 hours)
• Customer Service: Availability lookup training (1-2 hours)
• Production Supervisors: Work order location management (4-6 hours)

Role-specific training delivers significantly better adoption than generic overviews.

When to Get Help

DIY Possible:

• Single legal entity with 2-5 simple warehouse locations
• Wholesale distribution or light assembly manufacturing
• Team has NetSuite Admin with 6+ months experience

Consultant Recommended:

• Multi-subsidiary implementations (requires OneWorld expertise)
• Manufacturing environments requiring WIP tracking, routing, and work centers
• Integration with third-party WMS, MES, or production scheduling systems
• Data migration from legacy systems with complex item structures

Why Anchor Group is Your Ideal Partner for Multi-Location Inventory

When manufacturers face the complexity of enabling Multi-Location Inventory across production facilities, distribution centers, and regional warehouses, they need more than documentation—they need a partner who understands manufacturing operations.

Anchor Group brings deep manufacturing expertise to NetSuite implementations. As an Oracle NetSuite Alliance Partner and Product Spotlight Award winner, their team has configured work orders, assembly builds, BOMs, WIP and routing, labor costing, and scheduling across dozens of manufacturing environments.

What sets Anchor Group apart:

• Manufacturing Focus: More wholesale distribution and manufacturing clients than any other industry—they're familiar with procurement, vendor coordination, inventory management, and fulfillment
• 35+ Pre-Built Apps: Solutions for common manufacturing challenges already developed, reducing implementation time
• Midwestern Reliability: "Working with us should feel like calling up your neighbor for a hand—familiar, reliable, and no fuss"
• Proven Results: Clients report implementations completed on budget and ahead of schedule

As one client noted: "Within the first 2 meetings working with Basil and Nate, our team's morale and hope for the future dramatically improved... They communicate super clearly, and they get things done efficiently."

For manufacturers ready to enable Multi-Location Inventory—or optimize an existing implementation—contact Anchor Group to discuss your specific requirements.

Frequently Asked Questions

How quickly can I enable Multi-Location Inventory in NetSuite?

Basic configuration takes 2-4 hours for simple setups with 2-5 locations. Complex manufacturing implementations with WIP tracking, routing, and 10+ locations require 2-4 weeks. The critical prerequisite—closing all open sales orders—can add 30 minutes to 2 hours depending on your order volume. Test in sandbox first if available, as the feature cannot be easily disabled once inventory is distributed.

What does Multi-Location Inventory cost in NetSuite?

The feature is included at no cost in all NetSuite editions—Starter, Mid-Market, and Enterprise—with no per-location fees. However, advanced capabilities like bin management require the separate NetSuite WMS requires a separate license (quote-based)., and manufacturers needing WIP tracking require the Advanced Manufacturing SuiteApp (additional license). Implementation costs range from $0 for DIY simple setups to $5,000-$25,000 for consultant-led manufacturing implementations.

Can I track work orders across multiple manufacturing locations?

Yes. When creating a work order, assign it to a specific manufacturing location. NetSuite automatically decrements component inventory from that production facility and increments finished goods at the designated warehouse location upon completion. For multi-step production (e.g., PCB assembly → final assembly → testing), configure transfer orders triggered by work order completion at upstream locations. The Advanced Manufacturing module adds work center definitions, routing sequences, and finite capacity scheduling per facility.

What reports are available for multi-location inventory management?

NetSuite provides multiple reporting options. Saved Searches enable custom dashboards showing inventory by location with color-coded stock alerts, pending transfers, and reorder point alerts. SuiteQL provides SQL-like queries for complex cross-location analysis. Enterprise Edition includes Supply Chain Control Tower dashboards. Most manufacturers create custom reports for inventory by location, stock transfer summaries, WIP aging by facility, and time-to-fulfill KPIs.

What happens if I can't close all open orders before enabling the feature?

This is a common reason DIY implementations encounter problems. If you cannot close open orders through normal processes (shipping, billing, or manual closure), you'll need to contact NetSuite Customer Support—timelines vary by support plan and queue. Create a saved search to identify all open orders before attempting activation: search for transactions with "Pending Fulfillment" status. Address each order systematically to avoid blocking the feature enablement.