NetSuite Improves Inventory Tracking

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XCHEM International LLC

Industry: Manufacturing (Industrial Chemicals)

Overview:

XCHEM International is a leading manufacturer based in UAE for chemical supply needs. They have manufacturing capability for a wide range of chemicals including insulation materials, adhesives, cleaning chemicals, degreasers, and disinfectant.
XCHEM provides state of the art and cost-effective solutions to companies, ranging from small operators having highly specialized needs to large scale operators having bulk chemical requirements.

Source

Challenges for Maxcon and NetSuite:

  • Lack of tracking inventory movement.
  • Lack of accountability of transfer in and out of inventory items
  • Mismatched data of inventory – Due to lack of inventory tracking, there were huge discrepancies of physical count and the system data
  • Issues related to raw materials in production batches were difficult to track
  • Tracking of production process in the system was inefficient
  • Although BOM is mandatory in master data it could not be changed on work order basis
  • Adjustment of the inventory to recover production losses.
  • Fixed assets management is manual and is process separately from the procurement process.
  • Expense reporting is inefficient. Sales reps need to be in the office just to submit receipts for expense reimbursements.
  • Approval and review processes for many transactions are manual and inefficient.

NetSuite Benefits:

  • NetSuite has the multiple location features in managing inventory. Tracking of movement thru transfer order or inventory transfers. Locations in the system can represent actual warehouse locations or virtual locations representing segments of a warehouse.
  • The system monitors the transfer items: who sent the items and who received the items. The System has audit trails of who created and changed the records.
  • Inventory management in NetSuite is in sync with the financial data. Every item movement has the real time financial impact.
  • XCHEM uses lot-numbered inventory in NetSuite for their production. NetSuite will obtain data from the system for the lot numbers which is used for inventory analysis. Keeping the inventory lot-numbered allows tracking of purchases to production than to sales.
  • Fixed assets management has become seamless from procurement into managing the fixed assets records. The system computes and generates depreciation and journal entries automatically
  • NetSuite allows flexibility in the BOM for the production process. NetSuite allows revisions for an item. Updating of BOM on work order basis. The System also allows for tracking of spillage or loss during production.
  • NetSuite works on the cloud. Hence, the expense reporting is created and submitted anywhere as long as you have the internet connection and the access.
  • NetSuite automated the approval and review process. User defined criteria is available for different approval processes. Automatic alerts, reminders, and email are set for different records that need approval/review. The requesting individual is notified of the outcome of their request.
  • A Financial close process is more efficient and timely. With proper tracking of data in the system, data reconciliation is much more effective and efficient. Reports are more timely and accurate. Timely data is essential for business decisions.
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