Manufacturers need the ability to trace products through the entire lifecycle in order to provide an additional layer of visibility into where inventory came from and where it was used. Without the ability to easily provide this visibility, you’ll suffer delays and errors, which ultimately impacts product quality and customer satisfaction. Keep reading to find out how to more easily manage inventory with lot and serial numbers with the help of NetSuite manufacturing software.
The concept of tracing inventory completely requires more than just simple stock counts. Most manufacturers actually need to trace their products by lot or serial numbers to identify the impacts of defective products and their source.
For example, what would happen if one of your suppliers alerts you to a faulty order you received three months ago. Most likely, some of that inventory has been used and even shipped to customers at this point which means you'll have to recall every item made since you received the faulty items.
Lot and serial backward tracing would have provided the details needed to pinpoint impacted orders and limit your recall to affected items instead of all the items manufactured during that timeframe. As well, with NetSuite manufacturing software, you get forward tracing to easily identify the recipients of the defective orders and proactively notify them of the issue and provide steps to complete the recall.
NetSuite enables businesses to implement fulfillment strategies, such as first expiring, First Expire First Out (FEFO), to minimize waste and ensure inventory is used in the most efficient way possible. NetSuite's lot number record tracks the details so you can identify an expiration date and enter notes or irregularities in the production batch that might be necessary later.
Serial numbers provide a unique number for each item. Serial number tracking enables you to choose a specific serial numbered item to fulfill or receive an order. This feature also makes it simple to track warranty or repair issues down the road.
Lot and serial tracking empowers you with a deeper understanding of the financial impact of your inventory by keeping tabs on cost of goods by lot. This lets you better monitor and understand the source of fluctuations in the manufacturing process and their impact to your bottom line.
Lot numbers are automatically generated by NetSuite, if you choose. The lot number record allows you to track expiration dates, record actual cost of goods for that production lot. Down the road, this feature in NetSuite allows you to trace service warranty or repair issues.
The specialists at OASIS can help you get up and running quickly with robust software, professional services, and expert hands-on training to give you visibility from supplier to customer and give you greater control so you can use your inventory more efficiently. Contact the experts at Oasis Solutions today to get the expert guidance you need for a successful implementation.