NetSuite Advanced Manufacturing: Complete Guide

Key Takeaways

• Many manufacturers reduce production costs by improving variance visibility, reducing rework, and tightening material/labor capture (results vary by process maturity and data quality) through real-time variance management
• Eliminating disconnected systems typically reduces manual entry, missed scans, and rekeying mistakes—often improving shop-floor accuracy and auditability (results vary).
• Case studies show regulated manufacturers can achieve end-to-end traceability with the right lot/serial, BOM revision, and process controls—implementation timelines vary widely by scope, data readiness, and validation requirements.
• Significant inventory accuracy improvements are typical after implementation
• Mobile barcode scanning enables real-time shop floor data collection replacing manual clipboards

Understanding the Core of NetSuite Manufacturing

NetSuite's manufacturing capabilities exist across three distinct tiers, each building on the previous level. Understanding which tier fits your operations prevents overspending on features you won't use—or underinvesting in capabilities you need.

Work Orders & Assemblies represents the foundation, included with your base NetSuite license. This tier handles light assembly and kitting with basic component tracking and backflushing. It works well for simple operations but lacks WIP tracking, routings, and labor costing.

WIP & Routings adds work centers, routings, basic work-in-progress tracking, and infinite capacity scheduling with Gantt charts. Organizations needing to track production through multiple stages with labor costing often start here.

Advanced Manufacturing delivers the full manufacturing execution system (MES) with finite capacity scheduling, mobile data collection, the Advanced Manufacturing Work Bench, and batch/process manufacturing support. This tier replaces disconnected shop floor systems entirely.

Pricing varies based on your specific requirements, service tier, and configuration needs. Contact NetSuite or an implementation partner for current pricing tailored to your manufacturing environment.

Streamlining Production with Work Orders and Assembly Builds

Work orders and assemblies form the operational backbone of NetSuite manufacturing. A work order defines what you're building, the components required, and the production schedule—creating a complete record that flows through your finances automatically.

The system handles several work order types:

• Standard Work Orders: For discrete manufacturing with defined quantities and completion dates
• Assembly Builds: Simpler production scenarios where components convert directly to finished goods
• Work Orders with Routings: Multi-operation production with labor tracking at each step
• Batch Work Orders: Process manufacturing with recipe management and lot traceability

When you create a work order, NetSuite immediately reserves inventory, calculates expected costs, and slots the order into your production schedule. As production progresses, actual material consumption and labor hours post automatically to your WIP accounts—no journal entries required.

For manufacturers struggling with production visibility, this automation eliminates the month-end scramble to reconcile what was actually built against what the financials show. The real-time cost visibility alone drives significant improvements in pricing decisions and margin management.

Mastering Bill of Materials (BOMs) for Accurate Production

Your Bill of Materials defines exactly what goes into every product you manufacture. NetSuite's Advanced BOM capabilities go far beyond simple component lists, supporting the complexity real manufacturers face.

Key BOM features include:

• Multi-level BOMs: Sub-assemblies within assemblies, with costs rolling up automatically
• BOM Revisions: Version control for engineering changes without losing historical data
• Component Yield: Account for scrap and waste at the component level
• Phantom Items: Group components for planning without creating inventory transactions
• Substitute Components: Define acceptable alternatives when primary materials are unavailable

One critical implementation detail: the "Issued Step" and "Auto-Issue" columns only populate when a work order is first created, not when edited. This means finalizing your BOMs before generating work orders prevents rework and confusion on the shop floor.

For organizations with complex product structures, proper BOM setup directly impacts landed cost calculations and standard cost accuracy. Taking time during implementation to validate BOM structures pays dividends in financial accuracy.

Optimizing Production Flow with WIP and Routing

WIP and Routings transform NetSuite from a basic assembly system into a true production management platform. This module tracks work-in-progress through multiple operations, capturing labor and overhead at each stage.

Work Centers define where production happens—a machine, work station, or production line. Each work center includes:

• Daily capacity in hours
• Available resources (labor, machines, tooling)
• Shop calendar with operating hours
• Cost categories for accurate overhead allocation

Routings specify the sequence of operations to complete a work order. For each operation, you define setup time, run rate per unit, lag time between operations, and the assigned work center. This granular data enables both scheduling optimization and detailed cost analysis.

The Advanced Manufacturing Work Bench serves as your production command center. From this single interface, production managers view work instructions, associate materials with specific operations, compare resource supply against demand, and establish planned start and end times. The Work Bench replaces printed travelers and spreadsheet tracking with a real-time digital environment.

A common implementation stumbling point: Advanced Manufacturing Work Centers and standard NetSuite Work Centers must have identical names and statuses. Any mismatch breaks the scheduling engine. Establishing a naming convention before setup prevents this issue entirely.

Accurate Costing and Scheduling for Profitable Manufacturing

Manufacturing profitability depends on understanding true production costs—not estimates from months ago, but actual costs from today's operations. NetSuite captures costs at multiple levels:

Labor Costing tracks employee time by operation, applying labor rates automatically. When an operator clocks into an operation through the mobile app, labor costs begin accruing. When they complete the operation, costs are posted to the work order without manual intervention.

Overhead Allocation distributes indirect costs based on configurable rules. Machine hours, direct labor dollars, or units produced can all drive overhead application, matching your cost accounting methodology.

Variance Management compares actual production against standards in real-time. Material usage variances, labor efficiency variances, and overhead variances appear as production progresses—not as surprises at month end. Organizations report 30% production cost reductions through this visibility.

Finite Capacity Scheduling distinguishes Advanced Manufacturing from basic systems. Rather than assuming unlimited capacity (which creates unrealistic schedules), the finite scheduler respects actual machine, labor, and tooling constraints. Work orders schedule based on what's actually achievable, improving on-time delivery and reducing expediting costs.

One operational requirement to note: only work orders in "Released" status will schedule correctly. Work orders remaining in "Planned" status block finite scheduling, causing confusion when schedules don't generate as expected.

Beyond the Basics: Advanced Manufacturing Features in NetSuite

Advanced Manufacturing extends well beyond basic production control into capabilities that support complex manufacturing environments:

Mobile MES Capabilities replace paper travelers and manual data entry. Shop floor operators use wireless tablets with barcode scanning for:

• Material issuance to work orders
• Operation completions and time tracking
• Downtime and loss recording
• Quality inspection data capture
• Real-time production status updates

Batch/Process Manufacturing supports formula-based production with:

• Recipe management with ingredient scaling
• Co-product and by-product handling
• FIFO material issuance
• Full lot traceability from raw materials to finished goods

Shop Floor Travelers generate customizable production documents with barcodes for each work order. While standard travelers work for most operations, adding custom fields requires XML expertise—budget for professional services if you need customization.

Quality Management Integration enables real-time quality metrics tracking throughout production. When combined with the optional Quality Management module, inspection points integrate directly with routings for in-process quality control.

For manufacturers in regulated industries, these capabilities support compliance requirements. Second Skin, a medical device manufacturer, achieved full traceability from raw materials to finished products through proper configuration of lot tracking and BOM revision control.

Why NetSuite is the Right ERP for Your Manufacturing Business

Manufacturers evaluating ERP options face a fundamental choice: best-of-breed point solutions that require integration, or unified platforms that trade specialization for integration simplicity. NetSuite's manufacturing modules deliver compelling advantages for mid-market manufacturers:

Single Database Architecture eliminates the integration headaches plaguing manufacturers with disconnected systems. When a shop floor operator completes an operation, inventory updates, costs post, and financials reflect the change—instantly. No batch synchronization, no reconciliation, no "which system is right?" debates.

Cloud Deployment removes infrastructure burden. No servers to maintain, no upgrades to schedule, no backup tapes to manage. Your IT resources focus on business value rather than keeping systems running.

Scalability supports growth without platform replacement. As production volume increases, you add users and potentially upgrade service tiers—but the core system remains. Many manufacturers can scale transaction volume significantly in NetSuite by adding users/modules and tuning processes—without replatforming—though performance depends on service tier, integrations, and transaction volume.

Real-time Visibility enables better decisions. When sales asks about delivery dates, production managers answer from current data—not yesterday's spreadsheet. When executives review margins, they see actual costs, not estimates. This visibility drives improved inventory accuracy in typical implementations.

The platform also supports workflow automation that extends manufacturing processes. Automatic email notifications when work orders complete, approval workflows for engineering changes, and scheduled reports for production managers all configure without custom development.

Partnering for Success: NetSuite Advanced Manufacturing Implementation

NetSuite Advanced Manufacturing is not a DIY implementation. The module's power comes from proper configuration aligned to your specific manufacturing processes—and that requires expertise. Implementation timelines vary based on your operational complexity and data quality.

Implementation Phases

A structured implementation follows predictable phases:

1. Discovery: Document current processes, BOMs, routings, and work centers. Identify gaps between current state and NetSuite capabilities.
2. Configuration: Enable manufacturing features, install SuiteApps, configure Admin Console, create work centers, and build BOMs.
3. Data Migration: Extract data from legacy systems, clean and transform to NetSuite format, load into a sandbox environment.
4. Testing: Run complete production cycles in sandbox, validate financial postings, test mobile devices, conduct user acceptance testing.
5. Go-Live: Cutover to production, deploy mobile scanners, provide on-site support, stabilize operations.

Common Implementation Pitfalls

Several issues derail manufacturing implementations:

• Underestimating data cleanup: Dirty BOMs from legacy systems break NetSuite. A significant portion of implementation time should be dedicated to data preparation.
• Deferring customization decisions: Manufacturers who wait until post-go-live for customizations pay 2-3x more. Define requirements upfront.
• Service tiers are commonly sized by monthly transaction lines. If you consistently approach or exceed ~200,000 monthly transaction lines, that’s often a signal you may need to move up from Standard to a higher tier (Premium/Enterprise) to maintain performance.
• Insufficient training: Shop floor adoption determines success. Budget adequate on-site training for production staff, not just administrators.

For organizations preparing for NetSuite implementation, starting with clear process documentation and realistic expectations dramatically improves outcomes.

Why Anchor Group is Your Ideal NetSuite Manufacturing Partner

Selecting the right implementation partner matters as much as selecting the right platform. Anchor Group brings specific advantages for manufacturing implementations that generic NetSuite consultants cannot match.

As an Oracle NetSuite Alliance Partner, Anchor Group has earned recognition including the NetSuite Alliance Partner Spotlight Winner for SuiteCommerce. But what matters for manufacturers is their hands-on experience with complex production environments.

Manufacturing-Specific Expertise:

Anchor Group's team doesn't just know NetSuite—they understand manufacturing. From work orders and assembly builds to BOMs, WIP, routing, labor costing, and scheduling, the team has configured the full spectrum of manufacturing capabilities. As one client noted about team member Mitch: "He is super knowledgeable, and it didn't take long to pick up on our processes and understand our manufacturing processes."

Practical Approach:

Most manufacturers don't need every advanced feature—they need the right features configured correctly. Anchor Group's philosophy reflects this: "We believe most companies don't actually need the highest-complexity features, but it's fun to configure whenever they do." This means you get honest recommendations about what you actually need, not upsells on features you'll never use.

Midwestern Values, Enterprise Results:

Based in Wisconsin, Anchor Group operates with the straightforward approach their clients appreciate. As they put it: "Working with us should feel like calling up your neighbor for a hand—familiar, reliable, and no fuss." Combined with deep technical expertise in NetSuite ERP services, this means responsive support without enterprise consulting overhead.

If you're evaluating NetSuite Advanced Manufacturing, reach out to Anchor Group for an honest assessment of what your manufacturing operation actually needs.

Frequently Asked Questions

What are the key benefits of using NetSuite for manufacturing?

NetSuite delivers unified visibility across production, inventory, and financials in a single platform. Manufacturers report 30% production cost reductions through real-time variance management, 40% fewer errors from eliminating disconnected systems, and significant inventory accuracy improvements. The cloud deployment eliminates infrastructure burden while mobile MES capabilities replace manual shop floor tracking.

How does NetSuite handle different types of manufacturing processes?

NetSuite supports discrete, assembly, and batch/process manufacturing through its tiered module structure. Work Orders & Assemblies handles basic production, WIP & Routings adds multi-operation tracking with labor costing, and Advanced Manufacturing provides full MES capabilities including recipe management, lot traceability, and co-product/by-product handling for process manufacturers.

Can NetSuite integrate with existing shop floor control systems?

Yes, through multiple methods. The Manufacturing Mobile SuiteApp provides native barcode scanning on wireless tablets. For organizations with existing WMS/MES investments, third-party connectors like RF-SMART or Celigo provide integration capabilities. NetSuite's SuiteTalk API supports custom integrations for unique requirements.

What kind of reporting and analytics are available for manufacturing in NetSuite?

NetSuite provides comprehensive manufacturing reporting including production efficiency by work center, variance analysis (material, labor, overhead), WIP aging, work order status tracking, and capacity utilization. SuiteAnalytics enables custom dashboards and KPIs. Real-time cost visibility allows production managers to identify issues during production rather than discovering variances at month end.

Is NetSuite Advanced Manufacturing suitable for small and medium-sized businesses?

Yes, though the right tier depends on your complexity. Smaller manufacturers with simple assembly operations may find Work Orders & Assemblies sufficient at no additional cost beyond base NetSuite. Mid-market manufacturers with growing operational complexity typically benefit from WIP & Routings or Advanced Manufacturing. The cloud deployment model makes enterprise-grade capabilities accessible without enterprise IT infrastructure.