Understanding NetSuite Inbound Shipping
An inbound shipment is confirmed once the vendor has processed the purchase order to dispatch goods to the buyer’s receiving location. Effective inbound shipment management enables the buyer to monitor the shipment from the moment it leaves the supplier's facility until it’s successfully stored in the buyer's inventory. The NetSuite Inbound Shipping module captures comprehensive shipment details, including the quantities to be received, anticipated delivery date, transaction links, the entire put-away procedure, and relevant documentation. Experts advocate that understanding landed costs is essential within inbound shipments, making the simplification of these transaction processes crucial for reducing administrative workloads. By consolidating shipment data into a single record, the process of managing shipments becomes much more efficient.
Notable Features of NetSuite Inbound Shipping
Manufacturers and producers globally often face challenges related to inbound shipments. Many have expressed feeling a lack of control since they rely heavily on vendors and suppliers. Issues such as quality inspections, real-time shipment monitoring, congestion at ports, and rising loading costs can significantly impact production efficiency. Consequently, these challenges can hinder operations. Insufficient transparency can strain relationships between vendors, suppliers, and manufacturers, leading to a problematic NetSuite inbound shipment workflow. Recognizing these hurdles, NetSuite developed a robust module known as the inbound shipment solution which addresses every facet of the shipping process effectively.
1. Container Tracking
Real-time visibility into container movements stands out as one of the most beneficial features of the NetSuite platform. Users can conveniently track their containers via a computer, mobile device, or tablet from virtually anywhere. Upon creating a container record, users can select the ADD PO option to locate their purchase order and monitor order statuses. This live tracking capability keeps businesses informed about shipment arrivals and assists in estimating landed costs. Reports indicate that only a single inbound shipment document is generated for each container, based on notifications sent by the supplier regarding shipped items.
2. Receiving Purchase Orders
Receiving processes, transfer of ownership, and related transactions can all occur through one document. NetSuite effectively handles these transactions by grouping bills and receipts as related records, helping manufacturers streamline the purchase order receiving workflow. As a result, delays and outstanding orders are minimized. For example, by highlighting overdue and pending orders, reminders and workflows allow managers to quickly access critical contact information and expedite issue resolution. This contributes to an efficient inbound cargo process that maximizes time and resource efficiency.
3. Quality Management
The inbound shipping process in NetSuite ensures that quality control procedures are automated, guaranteeing the delivery of high-quality products. This is done prior to warehousing, through the execution of proper remediation workflows. Engineers inspect and assess all products, recording results for thorough analysis. The inbound shipment module in NetSuite stops any lapses by providing specific quality criteria checks for each shipment and order, allowing management to set acceptance standards and control parameters linked to each product.
How It Functions: Transportation, Receiving, and Storage of Inbound Inventory
This section will detail the operational aspects of how inbound shipment works concerning transportation, receiving, and storage.
Adding Inbound Shipment Data
Navigate to transactions, select transactions, then click to create an inbound shipment. A unique shipment number will be generated by NetSuite.
Input the shipment document number provided by the shipping company, reflecting the shipment’s progress.
Fill in the expected date and actual shipping date.
Enter the anticipated delivery date and any relevant information to accompany the record.
Include the IMO or vessel number and the shipment bill landing number.
Save the record.
Adding Purchase Orders to Inbound Shipment
Go to transactions, then purchases, click inbound shipment, and select the list option.
For the inbound shipment, you will need to add items.
Select items and click Add PO items.
Choose a Vendor to filter available purchase orders and select the desired purchase orders. NetSuite will show POs and vendors at the top. Click to view items. Ordered item quantities can be divided across multiple shipments by altering the expected quantity for items in the current shipment. The remaining quantity will automatically update.
Mark the checkbox beside POs to include all associated items.
Click OK.
Adding Landed Cost
Access transactions, then purchases, click inbound shipment, and select the list option.
Click edit to include the landed cost.
Select the landed cost category and enter the amount.
Choose the landed cost currency.
Opt to accept the default effective date or specify a different date.
Select the allocation method and associated method.
Save changes.
Adding Attachments
Go to transactions, purchases, click on inbound shipment, then list.
Click "Edit" and navigate to the communication tab.
Click on files and choose a file for attachment.
For a memo, select user notes and save.
Updating Inbound Shipment Records
After an inbound shipment is created, updates from shipment notices and any additional information from the shipper can be incorporated. For instance, user notes, documentation, or revised anticipated delivery dates.
Navigate to transactions, purchases, create inbound shipments, and then select list.
Click edit to make updates.
Modify fields such as expected rate, anticipated quantity, and receiving location.
Save the updated information.
To Add Files
Access transactions, purchases, create inbound shipments, and then list.
Click edit to add files.
Go to the communications tab and select the desired file from the attached files column.
Click add.
Receiving Items on an Inbound Shipment
Per NetSuite shipping updates from 2019, inventory detail categories become available on the receive shipment page and item receipt. This enables users to input inventory details related to purchase orders while receiving shipments. Purchase orders can display inventory details during the inbound receiving process.
Please note that NetSuite 2019.2 does not support pre-populating shipment inventory details from purchase orders. However, custom buttons or scripts can be created to fill in inbound inventory details.
Inventory details will be visible on the following pages and transactions:
Lot numbers: item receipt, receive shipment, purchase orders.
Serial numbers: item receipt, receive shipment, purchase orders.
Bins: items receipt, receive inbound shipment.
Inventory status: item receipt, receive shipment.
For Receiving Items
Navigate through transactions, make purchases, create an inbound shipment, and then list it.
Click on " View " to transfer the file.
Select receive.
During item reception, click on the posting period.
Check the receiver box to confirm items received.
Choose the receiving location and review the inventory details.
The product's inventory information must be configured according to the Arrow icon, visible only when a transaction is in Edit mode. The Check icon indicates that the item's inventory detail has been set up.
Once inventory details are configured, they will reflect in View mode for operational activities.
Click save, and update the process status by clicking refresh to mark the inbound shipment as complete.
Going back to transactions, purchases, select receive orders, then list and click view to see the received items.
Challenges Addressed by NetSuite Inbound Logistics
1. Inaccurate Data Entry
Recording accurate data upon products entering the warehouse is crucial since the information leaving the warehouse is just as correct as that coming in. Starting with precise item, serial, and lot details is vital for subsequent operations. NetSuite customization services can assist in capturing all necessary information regarding the products.
2. Absence of Real-Time Visibility
Reports indicate that many smaller companies fail to track inventory or rely on manual tracking systems, leading to major organizational issues. This leaves them vulnerable, particularly concerning inventory levels. Without effective real-time monitoring, the risk of delivering multiple orders from the same inventory and running out of stock increases. Utilizing NetSuite Inbound logistics enables the implementation of color-coded expedited documents and facilitates tracking inbound shipping orders.
3. Inefficient Use of Storage Space
Effective warehouse space utilization can enhance profitability, particularly as demand fluctuates with seasonal product lines. Manual tracing systems are often cumbersome to update and maintain, risking inefficient use of space or product overflow during deliveries. Moreover, optimally locating fast-moving goods and storing them effectively can minimize back-and-forth movements when fulfilling orders. NetSuite Logistics simplifies the tracking of all incoming orders within a unified system.
Benefits for Global Enterprises
Wholesale importers and distributors utilizing NetSuite can take advantage of a streamlined and easy accounting process for managing items through intricate shipping methods and transit. Organizations can expect improved inventory levels; logistics professionals can rely on accurate counts and maintain a single source of information regarding receiving and shipping. Today’s global supply chain requires management of various manufacturers, vendors, and partners across diverse regions and countries. Instead of losing track of your transit inventory, configuring the NetSuite Inbound shipment workflow helps consolidate all relevant information into a central segment. Such advantages benefit wholesale distributors, retail, supply chains, and various industries.
Conclusion
Though the concept of inbound shipment isn’t new, many individuals remain unaware of its full potential and advantages. This system offers a wealth of features, including the ability to monitor incoming shipments and support for accounting during ownership transfers, among others. The likelihood of misplacing items during this process is significantly minimized. For those managing mid-market companies, leveraging this software can lead to considerable success.
