If your factory in the US runs on one system while your plant in Mexico uses a different one, you may face delays in consolidating financial information and limited inventory visibility across borders. This scenario, familiar to many, can lead to lost revenue daily. NetSuite OneWorld provides manufacturers with a cohesive platform to manage various legal entities, currencies, and production sites from a single cloud-based database, reducing the inefficiencies caused by disparate systems.
Key Insights
NetSuite OneWorld allows manufacturers to oversee unlimited subsidiaries with distinct currencies, tax jurisdictions, and financial reporting within one cloud database.
Typical implementation durations range from 4-6 months for mid-market manufacturers and 6-9 months for businesses with 5-10 subsidiaries.
Real-time financial consolidation can dramatically shorten month-end closing periods, with some manufacturers reporting reductions from 10-15 days to just 3-5 days.
Automated intercompany transactions can cut down manual reconciliation efforts by 50-80%, saving hours of duplicate data entry each month.
The platform accommodates over 190 currencies and automates exchange rate management.
Best practices for implementation advise maintaining a Bill of Materials (BOM) accuracy of 98% or better before going live to prevent cascading errors in costs and inventory.
Understanding ERP for Manufacturing and the Role of NetSuite OneWorld
Enterprise Resource Planning (ERP) systems for manufacturing encompass production scheduling, inventory oversight, supply chain management, and financial reporting within one integrated framework. For manufacturers operating in multiple sites, regions, or legal entities, typical ERP systems may not meet the complexities involved.
NetSuite OneWorld expands the fundamental NetSuite ERP platform to cater specifically to multi-subsidiary management. It offers:
Financial consolidation across multiple entities with automated eliminations and currency translation.
Compliance specific to subsidiaries adhering to local tax codes, accounting standards, and regulations.
Visibility of inventory across borders at all facilities.
Automation of intercompany transactions to simplify transfer pricing, shared services, and drop-shipments.
Centralized master data for items, BOMs, customers, and vendors across entities.
Unlike add-on features for multi-company operations, OneWorld was designed from the outset for global functioning. It allows for real-time consolidation instead of batch processes while supporting manufacturing workflows that span different subsidiaries. For manufacturers considering NetSuite solutions, OneWorld is the tier aimed at companies that have exceeded single-entity limitations.
Core Components: Managing Manufacturing Processes with NetSuite's Fundamental Capabilities
Before addressing multi-subsidiary nuances, manufacturers require strong foundational procedures. NetSuite provides thorough manufacturing management via several integrated modules.
Enhancing Work Orders and Assembly Builds
In NetSuite, work orders manage the transformation of raw materials into finished products. The system oversees:
Allocation of components based on BOM specifications.
Work-in-process (WIP) inventory tracks items as they progress through different production stages.
Tracking labor and machine time in relation to production activities.
Completion transactions that update finished goods inventory and costs.
Assembly builds cater to simpler make-to-stock situations where parts are immediately consumed to form finished products. Both techniques interconnect directly with inventory, purchasing, and cost accounting.
Improving Production with BOMs and WIP
The accuracy of the Bill of Materials is essential for successful manufacturing ERP operations. NetSuite supports:
Complex multi-level BOMs for products that involve subassemblies.
Version control for monitoring engineering changes over time.
Phantom items for logical groupings that don’t exist as physical inventory.
Component yield percentages to manage anticipated waste.
WIP and routing features (available in Advanced Manufacturing) include:
Work centers that define production resources and their capacities.
Operational sequences with setup and run times.
Labor costs are calculated by task and employee.
Scheduling based on available capacities and deadlines.
When manufacturers adopt these tools to replace manual spreadsheet planning, they can achieve up to a 30% reduction in planning time.
Gaining Global Manufacturing Transparency with NetSuite OneWorld
In a landscape where manufacturing transcends different countries or legal entities, OneWorld revolutionizes how financial and operational complexities are managed.
Consolidating Financial Data Across Entities
OneWorld provides real-time financial consolidation through:
Automated currency translations utilizing customizable exchange rate tables.
Intercompany elimination entries to eradicate internal transactions from consolidated reports.
Hierarchies of subsidiaries supporting regional consolidation before global aggregation.
Multi-GAAP reporting catering to subsidiaries that utilize various accounting standards.
Organizations managing operations across several countries benefit from streamlined consolidations that historically required substantial manual intervention. This real-time clarity removes the cumbersome spreadsheet tasks that often complicate multi-entity manufacturers.
Navigating Multi-Currency and Tax Regulations
Manufacturers operating globally encounter currency and tax complexities that could overwhelm standard ERP solutions. OneWorld tackles this with:
Support for over 190 currencies and automated daily exchange rate updates.
SuiteTax that encompasses 110+ jurisdictions for compliance with VAT, GST, and sales taxes.
Localized reporting to meet statutory obligations in each market.
Transfer pricing documentation to maintain audit trails for intercompany transactions.
For manufacturers dealing with tax-heavy environments like Brazil, China, or the EU, partner-built localization SuiteApps extend compliance capabilities beyond standard offerings.
Enhancing Manufacturing Efficiency Through NetSuite’s Inventory Management
Inventory can be both a major asset and a significant risk for businesses. NetSuite's inventory management functions assist manufacturers in optimizing stock levels throughout their global operations.
Automating Inventory Processes
NetSuite's multi-location inventory offers:
Real-time visibility of stock across all warehouses and entities.
Reorder points and safety stock levels specific to each location.
Automated transfer orders to ensure efficient resource allocation among facilities.
Tracking of lot and serial numbers for traceability needs.
Management of bins to streamline warehouse organization.
To activate multi-location inventory features, careful planning is essential. All outstanding sales and purchase orders must be closed or fulfilled beforehand.
Streamlining Supply Chain with Up-to-Date Data
Tools for demand planning and supply chain optimization offer:
Forecasting demand based on historical data and emerging trends.
Supply planning with suggested purchase orders and work orders.
Calculations of lead times that factor in vendor and production schedules.
Cross-border fulfillment through intercompany drop-ships.
Manufacturers that implement these functionalities frequently report enhanced inventory turns and diminished carrying costs. When carrying costs decline by 20-30% through improved visibility, the cumulative effect on profitability can be substantial.
Transforming NetSuite into a Catalyst for Growth in Manufacturing
Achieving implementation success distinguishes manufacturers who optimize their operations from those who merely introduce another management system. The key lies in thorough preparation, phased strategies, and selecting the right partners.
Phases and Timeline for Implementation
A typical implementation for OneWorld in manufacturing follows this structure:
Phase 1: Discovery and Planning (3-4 weeks)
Cataloging the subsidiary structure and legal requirements.
Mapping accounts across entities while addressing localization needs.
Identifying transaction flows and establishing transfer pricing regulations.
Phase 2: Configuration and Development (4-8 weeks)
Setting up subsidiaries, roles, and access permissions.
Configuring currency rules, tax regulations, and consolidation procedures.
Importing master data, including items, BOMs, and customer/vendor details.
Phase 3: Manufacturing Setup (4-8 weeks)
Creating and validating multi-level BOMs to meet strict accuracy standards.
Configuring work centers, routing, and labor costing measures.
Setting inventory parameters unique to each location.
Phase 4: Integration and Testing (2-4 weeks)
Connecting external systems (PLM, MES, e-commerce, EDI).
Conducting user acceptance testing across subsidiaries.
Validating the consolidation and intercompany eliminations.
Phase 5: Going Live and Stabilization (1 month)
Running parallel operations for the first 1-2 month-end close periods.
Deploying cross-functional support teams for swift issue management.
Systematically decommissioning legacy systems.
Working with experienced consultants during NetSuite implementation minimizes risk and enhances value realization.
Tailoring NetSuite for Distinct Manufacturing Workflows
While NetSuite effectively manages most manufacturing requirements natively, custom workflows can address specific business needs:
Approval routing for production orders exceeding set cost limits.
Quality hold procedures that stop the shipment of uninspected items.
Management of engineering changes that coordinate BOM updates across systems.
Customer-specific configurations integrated with Configure, Price, Quote (CPQ) systems.
Explore more about implementing these automations in our guide on creating workflows within NetSuite.
NetSuite OneWorld for Advanced Manufacturing: Tracking WIP, Routing, and Costs
For manufacturers needing precise production tracking, Advanced Manufacturing modules significantly enhance core functionalities.
Putting Advanced WIP and Routing into Action
Tracking work-in-process captures expenses as items progress through the production stages:
Cost accumulation by operation covers materials, labor, and overhead.
Utilization reporting for work centers to pinpoint bottlenecks.
Integration with shop floor control through barcode scanners and tablets.
Visibility of real-time production status for all relevant parties.
Routings articulate the order of operations necessary for producing products:
Set up and run times organized by operation and work center.
Scheduling options offering both concurrent and sequential operation planning.
Support for alternative routings to allow adaptable production planning.
Adding subcontracted tasks for outsourced production phases.
Precise Calculation of Labor and Production Expenses
Accurately assessing manufacturing costs hinges on capturing all expense elements:
Direct materials are managed according to BOM consumption at either standard or actual costs.
Direct labor tracked through time allocations linked to operations.
Manufacturing overhead is applied via customizable methods.
Costs from subcontracting invoiced by external providers.
These detailed costs integrate into inventory valuation, depicting the cost of goods sold, and profitability by product, customer, or subsidiary.
Linking Your Manufacturing Ecosystem: Integration with NetSuite OneWorld
No ERP system functions in isolation. Manufacturers depend on integrations to link specialized applications throughout their workflows.
Manufacturing Integration Ecosystem
Frequent integration points include:
PLM Systems (e.g., Arena, Propel)
Purpose: Synchronization of engineering BOM data.
Method: REST API.
MES (Shop Floor Systems)
Purpose: Capturing production data.
Method: SuiteTalk/REST.
E-commerce Platforms
Purpose: Synchronization of orders and inventory.
Method: Pre-designed connectors.
EDI Systems
Purpose: Management of supplier/customer documents.
Method: Cloud EDI solutions.
QMS Systems
Purpose: Gathering quality data for compliance.
Method: SuiteApps from partners.
WMS Solutions
Purpose: Overseeing advanced warehouse functionalities.
Method: Connectors for RF Smart, third-party logistics.
Integrating E-commerce for Manufacturers
Manufacturers selling directly to consumers or through B2B platforms gain substantially from integrated e-commerce. Options include:
SuiteCommerce for native NetSuite storefronts with seamless ERP integration.
BigCommerce for flexible, scalable e-commerce with NetSuite connectivity.
Shopify for speedy consumer channels to market.
For B2B manufacturers, SuiteCommerce services facilitate customer portals where clients can check inventory, place orders, and track shipments. BigCommerce development provides an alternative for manufacturers seeking platform flexibility with ERP integration.
Our guide on landed cost implementation offers insights into the costing details crucial for manufacturers sourcing materials.
NetSuite OneWorld Features for Enhanced Manufacturing Decisions
Accurate, accessible reporting is vital for data-driven decision-making. OneWorld equips manufacturers with strong analytic capabilities.
Tailored Dashboards and Key Performance Indicators (KPIs)
Role-specific dashboards highlight pertinent metrics:
Production managers track work order statuses, utilization rates, and quality indicators.
Inventory planners keep an eye on stock levels, reorder prompts, and aging trends.
Finance teams monitor expenses, margins, and consolidation stages.
Executives review overall profit and loss statements, subsidiary performance, and cash flows.
Saved searches and SuiteAnalytics workbooks allow for custom reporting without needing technical expertise. For in-depth analysis, the SuiteQL query tool provides SQL-like access to NetSuite data.
Financial Clarity for Strategic Planning
Consolidated financial reporting aids in strategic decision-making:
Profitability assessments for subsidiaries reveal their contribution levels.
Product line margins highlighted across manufacturing operations.
Reports on currency exposure for effective treasury management.
Audit trails for intercompany transactions ensure compliance with transfer pricing regulations.
Effortless Scalability: Advancing Your Manufacturing Business with NetSuite OneWorld
OneWorld supports growth through adaptable architecture that eliminates the need for system replacements as your business expands.
Adjusting for New Markets and Product Lines
Adding subsidiaries, locations, or product lines is easy within the existing platform:
New legal entities are set up with relevant localization adjustments.
Additional warehousing is incorporated into existing subsidiaries.
Activation of new currencies for expansion into new markets.
Classification hierarchies for tracking new product line segments.
This capability ensures your initial investment in implementation continues to yield returns as you grow, thus avoiding the necessity for routine system replacements.
Long-Term ERP Success
Sustaining system performance over time demands focus on:
Routine BOM audits to keep accuracy high as product lines change.
User training coinciding with evolving roles and new功能 releases.
Process enhancements based on operational insights gained.
Ongoing integration maintenance as associated systems are updated.
For ongoing assistance, NetSuite managed services deliver expert support without the need to establish an in-house NetSuite team.
Why Versich is Your Trusted Partner for NetSuite OneWorld
Implementing OneWorld for manufacturing goes beyond generic ERP knowledge. It necessitates an understanding of production workflows, inventory dynamics, and the unique challenges faced by manufacturers.
Versich brings profound expertise in manufacturing to every project. As an Oracle NetSuite Alliance Partner recognized specifically for NetSuite solutions for producers, the team comprehensively understands work orders, assembly processes, BOMs, WIP, routing, labor costing, and scheduling - knowledge that generic implementers often lack.
Client feedback confirms this expertise. One client said, "The team has been incredibly helpful in navigating NetSuite customizations and implementation aspects, fully grasping our unique manufacturing processes."
What differentiates Versich:
Specific experience in manufacturing implementations across both discrete and process sectors.
Pre-built applications and accelerators tailored to address common industry requirements.
Values grounded in practicality, focusing on straightforward solutions instead of overly complex customizations.
A long-term partnership philosophy that favors sustained collaboration over a transactional mindset.
As Versich expresses, "We believe that many companies don’t truly require the most complex features; however, we enjoy the challenge of configuring them when necessary." This approach ensures you receive exactly what your manufacturing operation needs.
