8 Things to Know Before Starting a NetSuite Implementation for Manufacturing Companies
manufacturers looking to modernize operations, NetSuite offers one of the most comprehensive cloud-based ERP platforms available. It integrates inventory, production, procurement, financials, and
you end-to-end visibility across your manufacturing process.
But NetSuite is not a plug-and-play solution. A successful implementation requires careful planning, especially for manufacturing environments with complex production workflows and costing structures.
Here are 8 essential things to know before starting your NetSuite implementation as a manufacturing company:
1. Clarify Your Manufacturing Model
Are you make-to-stock, make-to-order, or engineer-to-order? Do you use discrete or process manufacturing? NetSuite supports all of these—but only if configured correctly. Align your business model with the appropriate NetSuite modules like Work Orders, Advanced Manufacturing, or WIP & Routings before you start the build.
2. Get BOMs and Routings Right
Your Bill of Materials (BOM) and routing setup form the backbone of NetSuite’s production and costing engine. Clean up BOM data, standardize your components, and ensure accurate routing steps, work centers, and run times. Mistakes here lead to cascading issues in inventory, scheduling, and cost tracking.
3. Decide on a Costing Strategy Early
NetSuite supports standard costing, average costing, and FIFO. The method you choose will directly impact your inventory valuation, gross margin reports, and variance analysis. This decision should be made early—with alignment between finance, operations, and your implementation partner.
4. Map Out Raw Material and Inventory Flows
Manufacturers often handle raw materials, subassemblies, finished goods, and sometimes consigned stock or contract manufacturing. NetSuite’s multi-location inventory, bins, and lot tracking can handle this—but only with proper planning. Think beyond storage; map how materials actually move through your facility.
5. Understand NetSuite’s Scheduling and Capacity Tools
If you’re using NetSuite Advanced Manufacturing, familiarize yourself with its finite and infinite scheduling capabilities. While powerful, the scheduler relies heavily on accurate data—particularly operation times, labor resources, and machine availability. Don’t expect a black-box solution; test and refine.
6. Integrations Are Often Essential
Most manufacturers rely on external systems—MES platforms, barcode scanners, quality control systems, shipping software. NetSuite is integration-friendly, especially using tools like Celigo or Workato, but it’s important to scope out these needs during the planning phase—not after go-live.
7. Don’t Neglect Work Order Lifecycle Setup
How will you release, issue, complete, and close work orders? Will components be backflushed or issued manually? These choices affect inventory movements, accounting, and operational efficiency. Define your ideal work order lifecycle clearly to avoid confusion during production.
8. Invest in Change Management and Training
Manufacturing teams often rely on tribal knowledge and long-standing processes. Introducing NetSuite will require retraining—especially on the shop floor. Involve your production managers, schedulers, and operators early. Run parallel tests. Document workflows. Adoption is key to ROI.
Final Thoughts
NetSuite can be a game-changer for manufacturers, but only when implemented with a deep understanding of your production environment. From BOM accuracy to costing methods, shop floor integrations to inventory flow—every step counts.
If you’re planning a NetSuite implementation for your manufacturing company, partnering with a team that understands both ERP and real-world production will help you go live faster—and grow smarter.
Passionate Writer, Blogger and Amazon Affiliate Expert since 2014.
