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6/15/2008
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NetSuite Adds SaaS Applications For Light Manufacturers

The vertical suite includes functionality for assembly, work order and bill of materials. The new services are aimed at midsize companies.

NetSuite has added to its online business management software a suite of functionality for light manufacturing companies.

The vertical suite introduced last week includes functionality for assembly, work order and bill of materials. The new services are aimed at midsize companies.

The latest release builds on NetSuite's Wholesale/Distribution Edition, which was launched about two years ago for the light manufacturing sector. The latest release helps manufacturers manage the bill of materials, assembly build and the work-order process for production orders that add to general stock levels, as well as special orders.

NetSuite services are integrated within one system giving subscribers visibility from sales to warehouse operations to invoicing, according to the company. Like most SaaS vendors NetSuite claims its services reduce IT costs by minimizing application management, upgrades and integration.

The assembly management features for light manufacturers enable them to more effectively manage component quantities and multi-level assemblies, which are closely tied with work orders.

The new work order capabilities enable manufacturers to manage the build process for production work orders to replenish standing inventory levels of finished goods or special order work orders built to specifications for a particular customer.

Also, build of materials are coupled with both assemblies and work orders and cover the components required for a single assembly plus all the components required by a particular work order, the company said. Assembly instructions can also be included in the printable BOM in PDF format.

In the area of inventory replenishment, manufacturers can set re-order points and preferred stock levels for both components of assemblies as well as finished goods based on a variety of factors including average lead time, historical or seasonal sales demand and number of days from supply to stock.

NetSuite for Manufacturers is available now for $999 per month, plus $99 per user per month.

In releasing the new product NetSuite is hoping to take advantage of SAP's decision in April to slash by half this year what it had planned to spend on its new on-demand software service, Business ByDesign. The company said it needed time to "fine-tune" the service. The pullback limited the rollout this year to just six countries and pointed to the numerous obstacles SAP has confronted in trying to embrace the new software delivery model.

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