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Key Takeaways

  • Global inventory distortion was estimated at $1.8 trillion in 2023 by IHL Group due to stockouts and overstocks
  • Organizations using NetSuite achieve up to 99.9% inventory accuracy with proper implementation
  • etSuite serves tens of thousands of customers worldwide across many countries and territories (per Oracle/NetSuite).
  • Many businesses still rely on manual methods and spreadsheets as primary inventory tools, creating accuracy challenges
  • Cloud-native architecture provides automatic updates on a regular release cadence, with upgrades handled by Oracle (often minimizing disruption compared to on-prem upgrade projects).

Understanding NetSuite Inventory Management Software

NetSuite Inventory Management is a core module within Oracle's cloud ERP platform that provides real-time visibility and control over stock across your entire operation. Unlike standalone inventory tools, it integrates directly with financials, sales, procurement, and e-commerce—creating a single source of truth for every inventory-related decision.

At its core, the system addresses three fundamental business challenges:

  • Visibility gaps that cause overselling across channels
  • Manual processes that introduce errors and delays
  • Disconnected data that prevents accurate forecasting

The platform uses a cloud-native architecture, meaning automatic updates twice yearly without downtime or expensive upgrade projects. For businesses tired of maintaining legacy systems, this alone represents significant value—your inventory management capabilities improve continuously without additional investment.

What makes NetSuite different from basic inventory software is its unified approach. When you receive inventory, the system simultaneously updates stock levels, records the financial transaction, and makes items available for sale across all connected channels. This eliminates the reconciliation headaches that plague businesses using separate systems for inventory, accounting, and e-commerce.

If you're new to NetSuite, our guide on what NetSuite is provides a solid foundation before diving into inventory specifics.

Key Features of NetSuite for Inventory Tracking

Effective inventory tracking requires more than knowing how many units you have on hand. NetSuite provides granular visibility that supports complex operations across multiple locations and sales channels.

Multi-Location Inventory Management

NetSuite supports hierarchical location tracking with locations, sub-locations, and bin-level granularity. Businesses can monitor stock across:

  • Warehouses and distribution centers
  • Retail stores and pop-up locations
  • Drop shippers and 3PL providers
  • E-commerce fulfillment centers

The Item 360 Dashboard consolidates all item-related data including KPIs, stock by location, projected levels, and stock alerts into a centralized view. This single-screen visibility eliminates the need to check multiple systems or compile reports manually.

Lot and Serial Number Tracking

For businesses requiring traceability, NetSuite provides:

  • Lot-numbered items that track quantity and specific cost for each lot as products are purchased and produced
  • Serialized inventory allowing selection of specific items when fulfilling orders
  • Fulfillment strategies including First Expiring, First Out (FEFO) to minimize waste

This capability proves essential for regulated industries. As Melvin Rodriguez, COO at Mielle Organics, explained: "I needed an inventory system where everything is traceable. In NetSuite, I can see related records and every activity associated with a particular order—at the detail level—for auditing."

Cycle Counting with Smart Count

Rather than shutting down operations for annual physical counts, NetSuite's Smart Count enables continuous cycle counting on mobile devices. The system tracks real-time activity during counts and alerts users to changes, improving accuracy without operational disruption.

For detailed guidance on bin organization and tracking, see our article on advanced bin management.

Optimizing Inventory Automation with NetSuite

Manual inventory processes create errors, delays, and wasted labor. NetSuite's automation capabilities address these issues directly by handling routine tasks that previously required human intervention.

Demand-Based Replenishment

NetSuite uses historical and seasonal sales data, average lead time, and inventory days of supply to manage reorder points and maintain preferred stock levels. The system automatically:

  • Calculates optimal reorder points based on actual demand patterns
  • Generates purchase orders when stock reaches predefined thresholds
  • Alerts purchasing managers to upcoming replenishment needs
  • Adjusts safety stock levels based on supplier lead time variability

This automation transforms inventory management from reactive firefighting to proactive planning.

Workflow Automation

Beyond replenishment, NetSuite supports custom workflows that automate approval processes, notifications, and record updates. Common automation scenarios include:

  • Automatic fulfillment routing to optimal warehouse locations
  • Low stock alerts triggered at configurable thresholds
  • Quality hold workflows for received inventory requiring inspection
  • Inter-location transfer requests based on regional demand

Our guide on creating NetSuite workflows walks through the configuration process step by step. For broader automation strategies, see NetSuite automation strategies.

Choosing the Best Inventory Management Software for Small Businesses

Dr. David Pyke, Professor and Inventory Management Expert, notes: "Inventory management gets complicated very quickly. Owners of small and emerging businesses would be stunned to see how much help they can get and money they can save by wisely managing their inventory. Many small businesses are not rolling in cash, and much of their funding is tied up in their inventory."

For growing businesses evaluating inventory solutions, consider these criteria:

Scalability

Your inventory system should grow with your business. NetSuite supports organizations from startup through enterprise scale without requiring platform changes. This matters because many companies lack complete supply chain visibility—often because they've outgrown their initial systems.

Integration Capabilities

Evaluate how well the system connects with:

  • E-commerce platforms (Shopify, BigCommerce, Amazon)
  • Shipping carriers and 3PL providers
  • Accounting and financial systems
  • CRM and customer service tools

NetSuite's native integrations eliminate the data silos that cause overselling and customer service failures.

Total Cost of Ownership

Look beyond subscription pricing to include:

  • Implementation and configuration costs
  • Data migration expenses
  • Training requirements
  • Ongoing optimization and support

While free or low-cost solutions may seem attractive initially, the hidden costs of manual workarounds and system limitations often exceed the investment in a comprehensive platform.

For businesses currently using QuickBooks, our QuickBooks vs NetSuite comparison details the key differences and migration considerations.

NetSuite for Warehouse Management System (WMS) Capabilities

Effective warehouse operations require more than inventory tracking—they demand optimized workflows for receiving, putaway, picking, and shipping. NetSuite WMS extends core inventory management with warehouse-specific functionality.

Key WMS Features

NetSuite's warehouse management capabilities include:

  • Mobile RF scanning for real-time transaction processing
  • Wave management to organize picking activities efficiently
  • Putaway strategies that optimize storage locations
  • Pick path optimization to reduce warehouse travel time
  • Cartonization for efficient packing and shipping

Organizations implementing NetSuite with RF-SMART mobile solutions achieve up to 99.9% inventory accuracy—transforming warehouse operations from liability to competitive advantage.

Fulfillment Rule Configuration

Businesses can configure fulfillment rules that automatically direct orders to locations where all items are available, reducing split shipments and shipping costs. This intelligent routing considers:

  • Stock availability by location
  • Proximity to delivery address
  • Shipping cost optimization
  • Service level requirements

Free Inventory Tracking and Management Options

For businesses not ready for enterprise software investment, several free approaches exist:

  • Spreadsheets using Excel or Google Sheets templates
  • Basic inventory apps with limited SKU counts
  • Open-source solutions requiring technical setup
  • Platform-native tools in Shopify or QuickBooks

However, these options carry significant limitations. Many businesses using spreadsheets as their primary tool face accuracy issues that compound over time.

Free solutions typically lack:

  • Real-time synchronization across sales channels
  • Automated reorder point calculation
  • Lot and serial number tracking
  • Integration with financial systems
  • Multi-location visibility

For growing businesses, the cost of stockouts, overselling, and manual reconciliation often exceeds the investment in proper inventory management software within the first year.

Enhancing Inventory with NetSuite's Advanced Modules

Beyond core inventory management, NetSuite offers specialized modules for complex operations:

Advanced Inventory

NetSuite Advanced Inventory adds capabilities including:

  • Matrix item management for products with multiple variants
  • Multiple units of measure for purchasing vs. selling
  • Bin management with stratified random counting
  • Demand planning and distribution requirements planning

Landed Cost Tracking

Accurate inventory valuation requires capturing all costs—not just purchase price. NetSuite's landed cost functionality tracks freight, duties, insurance, and handling to provide true COGS calculation. This proves essential for importers and businesses with complex supply chains.

Supply Chain Management

Recent NetSuite releases have introduced enhanced capabilities including:

  • Materials Requirements Planning (MRP) with expedite flags
  • Planning Workbench Views for supply chain disruption management
  • AI-powered analytics for predictive insights
  • SuiteAnalytics integration for ad-hoc reporting

Leveraging NetSuite for Inventory in Wholesale Distribution

Wholesale distributors face unique inventory challenges: high SKU counts, thin margins, demanding customers, and complex vendor relationships. NetSuite addresses these through:

Procurement Automation

  • Vendor-specific purchase order generation
  • Blanket purchase order management
  • Drop ship and special order handling
  • Vendor performance tracking

Fulfillment Optimization

  • Wave picking for high-volume operations
  • Pack station workflows
  • EDI integration for major retailers
  • Third-party logistics (3PL) connectivity

Customer-Specific Capabilities

  • Personalized pricing by customer or customer group
  • Sales rep commission tracking
  • Credit limit management
  • Automated collections workflows

For distributors evaluating NetSuite, our NetSuite for distributors page details industry-specific configurations and best practices.

NetSuite Inventory for Manufacturing Operations

Manufacturing inventory management extends beyond finished goods to raw materials, work-in-progress, and component tracking. 46% of manufacturers cite raw materials costs as their top challenge, while 38% identify supply chain issues as critical concerns.

NetSuite addresses manufacturing complexity through:

Production Planning

  • Bills of Materials (BOMs) defining component requirements
  • Work orders tracking production activities
  • Assembly builds for made-to-stock operations
  • Work-in-progress (WIP) tracking for accurate inventory valuation

Advanced Manufacturing Features

  • Routing and labor costing
  • Quality management integration
  • Serial/lot tracking through production
  • Multi-level BOM support

As one client, Tripp Perkins, noted about working with NetSuite consultants: "He is super knowledgeable, and it didn't take long to pick up on our processes and understand our manufacturing processes."

For manufacturing-specific guidance, visit NetSuite for manufacturers to see how the platform handles work orders and assemblies.

Streamlining Retail Inventory with NetSuite

Retail operations demand real-time inventory accuracy across physical stores and online channels. A single oversell damages customer trust and creates operational cleanup costs.

Omnichannel Inventory Management

NetSuite enables:

  • Real-time stock synchronization across all sales channels
  • Ship-from-store capability leveraging retail locations for fulfillment
  • Buy online, pickup in store (BOPIS) workflows
  • Endless aisle allowing store associates to sell from warehouse inventory

Point of Sale Integration

SuiteCommerce InStore provides:

  • Mobile POS for retail associates
  • Real-time inventory lookup
  • Customer order history visibility
  • Gift card and loyalty program support

E-commerce Integration

For retailers selling through SuiteCommerce or BigCommerce, NetSuite provides native inventory synchronization that prevents overselling while maximizing conversion rates.

Learn more about retail-specific capabilities at NetSuite for retail.

Why Anchor Group Is Your Ideal NetSuite Inventory Partner

Louis Balla, Partner at Nuage with 15+ years of ERP experience, observes: "NetSuite Inventory Control is a transformative solution for businesses aiming to optimize their inventory processes and enhance operational efficiency."

That transformation requires more than software—it requires a partner who understands your business.

At Anchor Group, we specialize in NetSuite implementation and optimization for wholesale distributors, manufacturers, and retailers. Our team doesn't just know NetSuite—we nerd out over it. From inventory automation to custom workflows, we focus on finding better, smarter ways to help your backend systems support real business goals.

What sets us apart:

  • Industry expertise with deep experience in wholesale distribution, manufacturing, and retail
  • Practical approach focused on solutions that work, not just features that exist
  • Midwestern values meaning we show up, follow through, and treat your business like it matters—because it does

As Danielle Hillebrand from Forney Industries shared: "Anchor Group took the time to listen to our needs, suggest creative solutions to accommodate our requirements, and provided honest feedback every step of the way."

Whether you're implementing NetSuite for the first time or optimizing an existing installation, we're ready to help. We also provide ongoing NetSuite consulting services to ensure your system continues delivering value as your business grows. Contact us to discuss your inventory management challenges.

Frequently Asked Questions

What are the core benefits of using NetSuite for inventory management?

NetSuite provides real-time visibility across all locations and sales channels, automated replenishment based on actual demand patterns, lot and serial tracking for compliance, and native integration with financials that eliminates manual reconciliation. Organizations implementing these capabilities achieve up to 99.9% inventory accuracy while reducing operational complexity.

How does NetSuite handle multi-location inventory?

NetSuite supports hierarchical location tracking with locations, sub-locations, and bin-level granularity. The system enables inventory transfers between locations, intercompany transfers for global operations, and real-time stock balancing across the network. Predefined fulfillment rules automatically direct orders to optimal locations, minimizing split shipments and shipping costs.

Can NetSuite integrate with our existing e-commerce platforms for inventory syncing?

Yes. NetSuite provides native integration with SuiteCommerce and connectors for major platforms including BigCommerce, Shopify, Amazon, and eBay. These integrations provide real-time inventory synchronization that prevents overselling while maintaining accurate stock levels across all channels. For BigCommerce users, our guide on NetSuite BigCommerce Connector details setup best practices.

Is NetSuite inventory management suitable for both small businesses and large enterprises?

NetSuite scales from growing businesses to global enterprises without platform changes. The system serves 43,000+ customers across 200+ countries, with configurations ranging from single-location operations to complex multi-subsidiary, multi-currency deployments.

What kind of reporting capabilities does NetSuite offer for inventory analysis?

NetSuite provides over 33 inventory KPIs through built-in dashboards and saved searches. The Item 360 Dashboard consolidates stock levels, projected inventory, turnover rates, and shortage alerts. SuiteAnalytics enables custom reporting and ad-hoc analysis for strategic inventory decisions.