Managing inventory becomes increasingly complex as businesses scale and expand across multiple warehouses. Coordinating stock levels across locations, fulfilling orders efficiently, and handling inter-warehouse transfers can quickly become unmanageable without the proper tools in place.
NetSuite, a leading cloud-based ERP solution, addresses these challenges with powerful, integrated features designed to streamline multi-location inventory management. Real-time inventory tracking, automated workflows, and centralized data help businesses optimize warehouse operations and boost efficiency.
In this article, we’ll explore how NetSuite simplifies multi-location inventory management, highlight its most valuable features, and share best practices for maintaining accurate, cost-effective operations.
What Is NetSuite Inventory Management?
NetSuite Inventory Management is a cloud-based system that helps businesses track and manage their inventory in real time. It’s part of the NetSuite ERP platform and is designed to give companies full visibility and control over their stock across multiple locations. Businesses can view current inventory levels, item availability, and inventory value at any time, enabling more informed decision-making.
The system supports inventory management across different warehouses or stores and automatically updates stock levels as items are received, sold, or transferred. Multiple costing methods are available—such as FIFO (first-in, first-out), LIFO (last-in, first-out), average cost, or standard cost.
NetSuite also includes demand planning tools that analyze historical sales data to forecast future inventory needs. Based on these forecasts, the system can automatically generate purchase orders or transfer orders to restock items. Users can set minimum and maximum stock levels, with restocking triggered when inventory falls outside those parameters.
For businesses requiring close item tracking, such as those in manufacturing or healthcare, NetSuite enables tracking through serial numbers or lot numbers. Cycle counting is also supported, allowing small portions of inventory to be checked regularly without requiring a full inventory count.
The inventory module integrates with other parts of NetSuite, including order management, finance, and ecommerce. With fully integrated data, inventory information remains accurate and consistent across the business.
Companies that sell through multiple channels or operate in several locations benefit significantly from this unified approach. NetSuite Inventory Management is used by retailers, wholesalers and distributors, manufacturers, ecommerce businesses, and companies with complex supply chains.
Key Features of NetSuite Inventory Management
- Real-Time Inventory Visibility
NetSuite gives businesses continuous access to accurate, up-to-date inventory data. Real-time tracking includes stock quantities, item availability, and current inventory value across all storage and sales locations.
Whether items are in a warehouse, retail store, or ecommerce channel, users can instantly view their location and availability. Greater visibility helps businesses avoid overselling, reduce the risk of stockouts, and make better purchasing and customer service decisions.
- Multi-Location Inventory Management
Managing inventory across different sites becomes complex as businesses expand. NetSuite simplifies this challenge through centralized control of inventory across warehouses, stores, and distribution centers.
Each location can maintain its own stock levels, reorder points, and preferred suppliers, while the system keeps everything in sync. It can automatically generate transfer orders and reorder items as needed, helping to prevent both overstocking and shortages.
- Flexible Inventory Costing Methods
Inventory valuation plays a significant role in financial reporting and profitability analysis. NetSuite supports multiple costing methods. Businesses can select the method that best aligns with their accounting practices, tax strategies, and compliance requirements. For instance, FIFO reflects the typical flow of inventory in many industries, while average costing works well for high-volume environments.
- Demand Planning and Forecasting
Accurate forecasting is essential for maintaining efficient inventory operations. NetSuite’s demand planning tools analyze historical sales data, seasonal trends, and custom forecasting models to predict future inventory needs.
Anticipating spikes or drops in demand helps reduce last-minute purchases and excess stock. As a result, businesses can optimize stock levels, improve customer satisfaction, and enhance financial planning.
- Automatic Replenishment
Inventory levels are constantly monitored against predefined reorder points, minimum and maximum thresholds, and preferred stocking quantities. When stock falls outside the desired range, NetSuite can automatically create purchase orders or transfer orders.
Automating replenishment reduces manual tracking, speeds up restocking, and helps prevent stockouts of critical items.
- Lot and Serial Number Tracking
Businesses requiring detailed traceability can track inventory using lot numbers for batches or serial numbers for individual units. This level of tracking is especially important in industries like pharmaceuticals, electronics, automotive, and food and beverage, where quality control and regulatory compliance are critical. Assigning unique identifiers to items enables businesses to trace exactly when and where a product was manufactured, shipped, or sold.
- Cycle Counting and Physical Inventory Management
Both full physical counts and cycle counting are supported within NetSuite. Cycle counting involves regularly checking small subsets of inventory, allowing businesses to maintain accuracy without halting operations for a complete count.
The system helps schedule and track these counts, compare expected versus actual results, and make necessary adjustments. This improves accuracy, reduces shrinkage, and ensures accounting records reflect actual inventory levels.
- Inventory Transfers and Adjustments
Inventory may need to be moved between locations or adjusted due to damage, theft, or miscounts. NetSuite streamlines these tasks by allowing users to create and approve transfer or adjustment transactions directly in the system. Updates are reflected immediately in inventory records, providing an accurate, real-time picture of stock availability and location.
- Seamless Integration with Other NetSuite Modules
NetSuite Inventory Management works in unison with other modules within the ERP platform, including warehouse management, procurement, finance, CRM, and ecommerce. For example, placing a sales order immediately updates inventory levels, while receiving a purchase order increases available stock. Integration ensures data consistency across departments, eliminates duplication, and enhances overall operational efficiency.
How to Manage Inventory Across Multiple Warehouses in NetSuite
NetSuite makes it easy to manage inventory across multiple warehouses through stock tracking at each location, automation of transfers and reorders, and integration of inventory data with broader business operations. With the right setup and workflows in place, you gain full visibility and control over distributed inventory.
It begins with enabling the Multi-Location Inventory feature. This functionality allows centralized, automated tracking, transferring, and replenishing of stock between various physical or virtual locations.
Here’s a step-by-step guide to managing inventory across multiple warehouses in NetSuite:
1) Enable Multi-Location Inventory
Start by turning on the Multi-Location Inventory feature in NetSuite.
- Go to: Setup > Company > Enable Features
- Under the Items & Inventory tab, check Multi-Location Inventory
- Save your changes
2) Set Up Locations (Warehouses)
Create a location record in NetSuite for each warehouse or inventory site.
- Go to: Setup > Company > Locations > New
- Enter details for each location (name, address, etc.)
- Mark locations as “inventory locations” if they hold stock
- Set parent-child relationships if needed (e.g., warehouse under a regional office)
3) Associate Inventory with Locations
Define where each item is stored, and track inventory per location.
- Navigate to an item record: Lists > Accounting > Items
- Edit the item and go to the Inventory sub-tab
- Assign inventory to each location, including reorder points, preferred stock levels, and vendors
- Save the item record
4) Transfer Inventory Between Locations
Use transfer orders to move inventory from one warehouse to another.
- Go to: Transactions > Inventory > Transfer Orders > New
- Choose the “From” and “To” locations
- Add items and quantities to transfer
- Save and fulfill the transfer order when items are shipped
- Receive the transfer at the destination location
5) Automate Reordering per Location
Replenishment can be automated for each warehouse individually.
- Set reorder points and preferred stock levels in the item/location record
- Enable Auto Reorder Point during item setup
- NetSuite will generate purchase or transfer orders when stock falls below defined thresholds
6) Use Inventory Reports by Location
Leverage NetSuite’s reporting tools to track inventory across all warehouses.
- Go to: Reports > Inventory / Items
- Use built-in reports such as:
-
- Inventory by Location
- Inventory Valuation Summary
- Stock Status
- Customize reports with filters for location, item category, or date range
7) Monitor Inventory with Dashboards
Create role-based dashboards to display key metrics for warehouse managers and operations teams.
- Add KPIs, reminders, and reports filtered by location
- Use saved searches to show low-stock alerts, backorders, or pending transfers
8) Integrate with Other Modules
Multi-location inventory works seamlessly with sales, purchasing, and fulfillment processes. For example:
- Sales orders pull inventory from the assigned warehouse location
- Work orders can be location-specific for manufacturing or assembly
- Purchase orders can direct deliveries to specific warehouses
Managing inventory across multiple warehouses can be complex, yet NetSuite simplifies the process through real-time visibility, automation, and centralized control.
Enabling features such as automated replenishment, transfer orders, and location-specific tracking helps businesses reduce errors, prevent stockouts, and fulfill orders more efficiently.
Seamless integration across inventory, sales, purchasing, and finance ensures consistent data and streamlined operations. When properly configured and utilized, NetSuite becomes a powerful tool that supports business growth, enhances accuracy, and provides a competitive advantage in managing distributed inventory.
Disclaimer: This article is based on publicly available information and the professional experience of the DOKKA team. DOKKA is not affiliated with Oracle or NetSuite.
