What is NetSuite ERP and How Does It Function?

What is NetSuite ERP

Hey business owners! Do you often wonder if switching your operations to a cloud ERP is right for your business? Well yes, if you want to get rid of the headaches that come with outdated systems and version locks. These are very common with on-premise systems and rob you of your growth. We know you want to excel your business to the topmost position. That’s why, we bring you this blog to help you determine what is NetSuite ERP. And why it is important for your company’s development.

According to Hitachi Consulting’s recent study, companies stuck with old technologies experience outgrowth and witness a major time-sink with manual systems. Relying on just traditional spreadsheets becomes inadequate as businesses experience growth. This moment signals the need for an ERP (Enterprise Resource Planning) system. Despite being commonly known, many professionals may not understand the benefits that NetSuite ERP brings to any organization. No worries, we’ll be covering the same in this article. 

Why ERP is Important for Business?

ERP systems have become vital for organizations wanting to optimize resource planning and utilization. If you want to allocate financial and human capital efficiently, opt for these systems. With their help, your business can establish cost-effective processes within the business structure. That too without compromising on quality or financial performance. 

Even in planning and coordination, ERP systems play an efficient role. Employees can easily access information on customer orders, current inventory, and supplier purchase orders. Plus, it helps businesses forecast future demand, which allows for proactive changes to prevent issues in the future. 

As ERP functions as an in-detailed data source, it generates financial data reports required to oversee business growth. Additionally, the analysis it provides proves pivotal for business decisions. Clear graphs and charts provide executives with invaluable insights into upcoming trends.

What is NetSuite ERP?

When organizations become familiar with ERP, they often wonder – what is NetSuite ERP. Or they question how NetSuite ERP is different from others. While most of the functions we discussed previously are key NetSuite capabilities, there’s more to this software. 

So, what is NetSuite ERP?

It is an all-in-one cloud-based ERP solution developed by Oracle Corporation. It offers a comprehensive suite of applications to help businesses manage key functions. From financial management to inventory control, this software offers limitless possibilities. NetSuite ERP provides organizations with the tools to optimize their operations and drive innovation. 

History of NetSuite ERP

NetSuite ERP traces its origins back to 1998. Evan Goldberg and Larry Ellison are the founders of the software, which was initially named NetLedger. With the help of web-based accounting software, the company aimed to simplify the processes of small and medium-sized businesses. 

Over the years, the system evolved and expanded its capabilities, eventually becoming NetSuite ERP under Oracle’s stewardship. Today, NetSuite ERP is trusted by thousands of organizations worldwide. Industries such as manufacturing, retail, and services have benefitted from NetSuite ERP implementation

Facing issues while implementing NetSuite ERP?

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How Does NetSuite ERP Work?

Working on a SaaS model, the system manages core NetSuite ERP functions. They include supply chain, inventory, order procurement, finance and accounting, reporting, etc. Besides, organizations can also add options in the system such as:

  1. Customer Relationship Management /CRM
  2. Human Resource Management 
  3. Service and Marketing Automation
  4. Performance Management, and more. 

The best part of these key elements of NetSuite ERP is they share a common database that updates in real-time. Plus, as an authorized user, you can access the entire business function within a matter of a few minutes. Isn’t it worth trying, right?

Different organizations will have distinct NetSuite features. It operates through a cloud-based subscription model. This means you can use only those functions for which your organization has subscribed. Nonetheless, the cost is fair as NetSuite ERP pricing depends on the modules you choose. 

Benefits of Using NetSuite ERP

As all your customers will use the same NetSuite ERP infrastructure and version, they can benefit from automatic updates. The system stores the data of each customer securely to prevent data breaches. Some of the other advantages of using the software:

  1. Easy Integration: NetSuite integration helps various business processes combine into one platform like finances, customer management, supply chain, etc. This means all parts of the business can function seamlessly. With NetSuite ERP, you can avoid separate data islands and make every operation run smoother.
  2. Insights at Your Fingertips: Real-time access to important business data allows quick decisions based on current market trends.
  3. Growth Ready: NetSuite can grow along with your business. Whether you’re dealing with more transactions, adding new users, or handling more complex tasks, the software can handle it without causing major disruptions.
  4. Tailored to Your Needs: You can customize NetSuite to match the specific requirements of your industry. So, you can ensure NetSuite ERP functions perfectly with what you do.
  5. Say Goodbye to Most Manual Tasks: NetSuite automates tasks to simplify various processes. As a result, it reduces the need for manual work. It can’t get more efficient than this, for sure.
  6. Strong Financial Management: Managing finances with NetSuite becomes easier. You can generate accurate reports, handle audits smoothly, and comply with accounting rules.
  7. Better Customer Relationships: NetSuite’s built-in CRM tools help you manage customer interactions. Simultaneously, you can handle sales and run marketing campaigns more effectively.
  8. Global Operations Support: NetSuite is equipped to handle international operations. Features like multi-currency and multi-language support make it convenient for a business to expand globally.
  9. Improved Collaboration: Collaboration between different departments is essential. And NetSuite’s shared platform provides users with sharing data and insights.
  10. Cost-Effective: NetSuite is a cloud-based software, so you don’t need to invest in expensive on-premises hardware. This means you can save a lot on IT costs and maintenance.
  11. Always Up to Date: NetSuite regularly updates its features and improvements automatically. So, you always have access to the latest tools without manually updating anything.
  12. Security and Compliance: NetSuite prioritizes security with robust techniques like user access controls, data encryption, and regular security audits. This is particularly important for organizations that handle sensitive customer data and financial information.

Key NetSuite ERP Features

NetSuite offers a wide array of modules to meet the needs of diverse businesses. Each has a significant role to play in a business process. Let’s discuss key NetSuite features one by one. 

Financial Management

NetSuite ERP helps businesses handle their financial matters smoothly. It keeps tabs on your company’s finances, accounts payable, and accounts receivable, manages your assets, and creates financial reports. Plus, it’s got features to support other countries’ currencies and branches, which is handy for businesses that operate globally.

Inventory Management

With NetSuite, you can keep a close eye on your inventory. It helps you plan for what you need, manage orders, and see how much stock you have in real time. This way, you can avoid running out of stock or overstocking situations, which can mess up your supply chain management process.

Customer Relationship Management (CRM)

NetSuite’s CRM tool helps you stay on top of your customer relationships customers. With the help of the software you can:

  1. Track interactions
  2. Keep up with potential sales
  3. Run marketing campaigns smoothly

It’s all about making sure your customers feel valued and finding ways to grow your business.

E-commerce

Nowadays almost every business sells online. If you are one of them and finding it difficult to manage your e-commerce business, NetSuite ERP functions have you covered. It lets you set up and manage your online store with ease. You can sell, process orders, and even connect with other online marketplaces, all in one place.

Human Resources (HR)

NetSuite helps you handle your human resources tasks efficiently. From managing payroll to tracking employee attendance, it can handle all. Plus, it allows employees to update their information onboard. This way, the software helps keep things running smoothly.

Supply Chain Management

Boost your supply chain operations with robust NetSuite features. The software helps businesses forecast demand, procure orders from vendors, and manage suppliers. This means you can save money and keep track of what’s going on in your supply chain.

Business Intelligence and Reporting

NetSuite offers powerful analytics and reporting tools. You can create your own reports and dashboards to see what’s going on in real time. These insights help you make smarter decisions based on the collected data.

Customization and Integration

One of the best things about NetSuite is that you can customize it to fit your business perfectly. You can configure settings to match your unique needs. Plus, connect it with other apps to extend its functionality even more.

How to Perform NetSuite ERP Implementation?

For successful NetSuite ERP implementation, you need to follow certain steps. They are:

1.Figuring Out What Your Business Needs

First things first, you’ve got to figure out what’s affecting your business and what solutions you need. This means finding out where your business is struggling and deciding which parts of NetSuite ERP you actually need. Accordingly, set some goals for what you want to achieve after implementing the software.

2.Making NetSuite Fit Your Business

Once you know what you need, it’s time to make NetSuite work for you. This might mean customizing its settings so it fits your business just right. Sometimes, you need to configure to adapt the software to unique processes.

3.Migrating the Data

Transferring all your existing data into NetSuite can be a headache. You’ve got to be careful to make sure data gets migrated to the software database accurately and safely.

4.Training

Everyone in your business needs to know how to use NetSuite properly. This means making them proficient in NetSuite so they know how to get the most out of it.

5.Trying and Testing 

Before you start implementing the NetSuite process into your business process, you’ve got to make sure everything works fine. This means testing the NetSuite functions to identify issues and rectify them on time. 

6.Go Live

After comprehensive testing and user training, it’s time to go live with elements of NetSuite ERP. Since it’s an essential part, we recommend businesses have a backup plan ready to go in case of unexpected emergencies.

What are the Challenges and Considerations of NetSuite ERP?

As of now, we’ve gathered information about NetSuite ERP’s features, benefits, and functionalities. Now, let’s take a look at the challenges that you might face as well as things you need to consider while using it:

  1. Protect sensitive information with strong access controls and encryption.
  2. Safeguard business data with cloud-based solutions.
  3. Prepare employees for changes in processes that come with NetSuite ERP implementation.
  4. Assess integration needs carefully due to the varying complexities of third-party integrations.
  5. Consider all NetSuite ERP costs associated with different features over time, including subscriptions, customization, and support.
  6. Provide adequate training and support to encourage employees to embrace the system effectively.
  7. Plan integration processes accordingly to avoid complications.

Want to know more about NetSuite integrations and their relevance for your business?

Talk to our experts.

How much does NetSuite ERP cost?

NetSuite is a highly customizable platform that is designed to solve a wide array of business problems. It covers a spectrum of functionalities of a business. If you can’t understand your organizations’ specific requirements, it might be difficult to estimate the precise NetSuite ERP pricing. Several factors come into play when you determine the NetSuite ERP cost, including:

  1. User Licenses: The number of people using NetSuite will require buying a new license for each of them. So, assess how many of your team members will use the software.
  2. Company Size: If you are a big enterprise, you might need complex structures. As a result, more extensive NetSuite configurations.
  3. Add-on Modules: The inclusion of different NetSuite functions will contribute to the overall cost.
  4. Customization: Whether it’s a simple configuration or complex integration, they will influence the overall price.
  5. Ongoing Training and Support: As mentioned above, it’s important to train your team members about the functionalities of NetSuite on a regular basis. Hence, upgrading your team skills and ongoing training will contribute to the price.

Conclusion

NetSuite ERP is a powerful tool that can change the way companies manage their business processes. Its cloud-based architecture and ability to synchronize data in real-time or scalability make NetSuite a top choice for businesses seeking growth. However, successful NetSuite ERP implementation requires customization, support, and most importantly, careful planning. If you understand key NetSuite features and benefits, you can harness its full potential to thrive in today’s competitive landscape.

Still, if you need expert guidance to achieve your business goals, we are here to support you. The Ledger Labs is a prominent NetSuite consulting company, helping businesses leverage the full potential of NetSuite ERP.

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