The Business System Spectator

I had written about NetSuite’s manufacturing functionality this past year in my post, NetSuite Manufacturing: Right Direction, Long Road Ahead. 12 months later Returning to this subject one, it is stimulating to start to see the improvement that NetSuite has made. At the same time, you will see twists and becomes that NetSuite will face in carrying on down this highway. If NetSuite will continue its growth, reported at 28% last year in its core business, it certainly does not have any choice but to pursue manufacturing customers. Manufacturers will be the largest market for ERP systems and for that reason a good target for NetSuite’s development efforts. Although manufacturers have been slower to embrace cloud processing than many other sectors have, the problem is rapidly changing.

In our ERP seller selection services at Strativa, we find manufacturing companies open to cloud ERP increasingly. Sometimes, in fact, they only want to look at cloud solutions. Quite simply, NetSuite is at the right place at the right time. To more to address the needs of manufacturing completely, Is constantly on the build out its primary functionality NetSuite, with basic must-have features such as available to promise (ATP) computations, routing, production orders, and standard costing. In some of the breakout periods, there were signs of this NetSuite is also discovering functionality that will go well beyond the fundamentals: for example, source-chain management (SCM) and demand-driven MRP (DDMRP).

This leads to the first twist and change that NetSuite should navigate: filling out gaps in making functionality without over-engineering the system. SAP and Oracle are well-known for having production systems that are feature-rich, requiring significant effort and time from new customers to decide which features to configure and also to implement them.

Part of the attraction of NetSuite is its comparative simplicity and ease of implementation. If NetSuite desires to remain a good option for the likes of midsize and small manufacturers, or small divisions of large companies, it will be wise to pick and choose where you can build out the class of the merchandise. Moreover, how much SCM functionality do potential customers expect from NetSuite, and where can it seem sensible to partner with best-of-breed specialists, who can better bridge a number of SCM data resources? Netsuite’s recent success with manufacturers such as Qualcomm, Memjet (discussed later in this post), as well as others give it real-world customers to validate its product roadmap.

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It will do well to prioritize new development attempts to the areas where those customers deem most needed. NetSuite may choose, ultimately, to move up-market fully, to end up being the manufacturing cloud equivalent of SAP or Oracle. But if it does so, there are already lots of other cloud ERP providers, such as Plex, Rootstock, Kenandy, Acumatica, and Keyed-In Solutions, that’ll be ready to take NetSuite’s place serving small and midsize manufacturers. NetSuite also announced a fresh alliance with Autodesk to combine its PLM 360 offering for product lifecycle management with NetSuite’s ERP. This is in addition to NetSuite’s existing partnership with Arena Solutions.

By way of background, PLM systems control the entire life-cycle of product development, from ideation and requirements gathering, through design and development, to release to production, service, anatomist change, and retirement. PLM systems take an anatomist view of the merchandise and tend to be under the domain name of the client’s product executive function.