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What’s New in NetSuite Materials Requirement Planning for Manufacturers

Material Requirements Planning (MRP) is a standard supply planning system used by product-based manufacturers to help businesses balance supply and demand. Supply chains are more important than ever, with this year exposing many weaknesses for many companies. To adapt to the disruptions, these businesses are re-evaluating their supply chains and adding necessary adaptations to become more resilient.

NetSuite has integrated Material Requirements Planning functionality into its supply planning MRP software to improve efficiency and intelligence. This is most significant because NetSuite now offers greater insight than ever before. This is invaluable for companies in the product industry because it has the adaptability and agility that these companies need to manage their supply chains.

Material Requirements Planning is a standard supply planning system used by product-based manufacturers to help businesses balance supply and demand. The MRP system helps businesses track the materials required for production and identify excess or shortages.

MRP and production scheduling are complicated and unique processes that must be incorporated into ERP systems. MRP is a manufacturing process that optimises the production of an organisation by predicting demand and assembling the appropriate raw materials, components, and sub-assemblies in order to get the finished goods out.

While a basic MRP system can be built for smaller manufacturing facilities, companies with larger, more complex supply chains will benefit from a fully integrated supplier and demand planning solution. However, since NetSuite provides production planning and control modules for the NetSuite cloud ERP platform, they also have the ability to customise these products to suit the needs of manufacturers in different ways.

Why Manufacturing Resource Planning is the key to a successful manufacturing business

Inventory issues can cause significant delays in production. With a thorough understanding of the materials necessary for each product, businesses can avoid problems and optimise the ordering process. MRP software helps manufacturers in this regard by identifying the supply-demand ratio of resources and equipment, ensuring proper use of resources and optimising their outputs to achieve the best efficiency and profitability.

Benefits of Materials Resource Planning

An MRP system is a cost-effective way for manufacturers to plan inventory, keep track of vendor orders, as well as their own orders, and ensure production runs are completed efficiently. MRP software helps manufacturers meet and plan production needs, and help plan, monitor, and analyse the activity of their employees and processes to help identify bottlenecks and make improvements when necessary.

The system also provides information about price changes and allows manufacturers to plan for future investments and inventory to keep their manufacturing resource planning in line with demand. Manufacturers can also use MRP software to plan for higher demand, during peak seasons, seasonal shortages, and to take advantage of peak profits.

The benefits of incorporating MRP software into your ERP resource planning are:

  • decreasing fixed costs
  • cost of materials reduction with the help of automated replenishment,
  • reduction of manpower costs and ultimately lead to a more flexible workforce,
  • understand the components that go into each sub-assembly,
  • preventing delays in the production cycle,
  • and increasing the productivity yield.

MRP Challenges

The key to achieving greater efficiencies, reducing costs and improving capacity utilisation of a manufacturing facility lies in forecasting the expected demand and supply of key materials. Specifically, as many as 25 to 40 per cent of manufacturing facilities will experience shortages in a given time period and the impact of limited inventory can be substantial.

Because of this, MRP software is a crucial tool to help manufacturers prevent, manage, forecast and improve inventory turnover. The need for production planning solutions is especially important for product-based manufacturers as they may have significantly reduced production floor space and the number of units that must be shipped is significantly higher than for manufacturing companies that make steel or other heavy materials.

ERP Software and Order Management

NetSuite has created a portal for industrial manufacturers to manage all of their orders through a single source of control. As the integration between these systems improves, so does their effectiveness, performance and ultimately, efficiency. This integration opens the path for multi-channel, multi-company ordering, meaning higher overall profitability for all involved. Software As A Service Manufacturers are constantly looking for ways to provide better quality and higher productivity without investing in additional capital. The software-as-a-service (SaaS) model allows companies to access the best of what other companies are doing and then adopt it in their own factories.

Planning and Scheduling

MRP modules within NetSuite allow manufacturers to plan and produce an order to meet the demands of both suppliers and customers. By tracking production progress over time and reducing the risk of having to order more inventory than is required, manufacturers can quickly adapt to dependent demand levels and deliver the goods to their customers.

Time-Saving Controls NetSuite produces better levels of inventory management and reduces costs by directing manufacturers’ working capital to where it is needed most. The ERP software has several features that are designed to minimise the production schedule and time it takes for manufacturing products to be completed and delivered.

Supply Chain

NetSuite’s powerful supply chain management tool can help companies streamline their supply chains while at the same time making product inventory management easier. Inventory allocation is a powerful feature that lets businesses control and predict the movement of inventory based on customer demand. Businesses can allocate inventory that has been received and also anticipate receiving inventory before it arrives.

NetSuite’s Supply Chain Control can show the projected inventory level of a business in conjunction with demand, inventory, and supply throughout the supply chain. The software provides easy to read supply chain management charts that allow for the identification of issues in a timely manner.

MRP Procurement

NetSuite’s procurement solution helps businesses manage their purchase planning process, purchase goods and services at the best cost, and in a timely fashion. Utilizing the intuitive online management platform, business users can quickly access a wide range of information regarding their purchasing programs, vendors, options and pricing to make informed capacity planning decisions about their purchasing.

NetSuite manufacturing ERP provides a cloud-based solution that automates and improves the accuracy of the procure-to-pay process. It consolidates and links key procurement transactions, provides approval and matching workflows for internal controls, and supports compliance procedures.

Shop Floor Control

OneWorld, which is a manufacturing software module offered by NetSuite to manufacturers , is designed to improve the performance of key resources on production lines. Shop Floor Control, an important feature in OneWorld, assists manufacturers in managing and optimising the production schedule (plus performance of key resources) and the gathering of information from the manufacturing process. It provides a customisable performance-monitoring dashboard for each factory. This dashboard goes beyond standard performance indicators, providing an at-a-glance view of all key performance indicators for both individual items and individual factories. This includes package content (one of the key components of customer acquisition costs), minimum and maximum package sizes and the weight that each package will require to deliver the product at the required delivery times. The dashboard also highlights delivery times and expected deadlines, as well as the minimum number of deliveries that must be made before those deadlines.

Quality Management

NetSuite OneWorld provides manufacturers with a suite of solutions that help them manage their quality and production schedule. The manufacturing software planning and control module, provides manufacturers with the ability to track and predict the likelihood of defects, including detection, root cause analysis and remediation. This enables manufacturers to eliminate problems, improve inventory management and increase production. Manufacturing Execution System (MES) is another manufacturing software module included in NetSuite OneWorld that gives manufacturers improved operational effectiveness in a unified solution, all in real-time. MES also helps manufacturers ensure quality levels are consistent and up to specification and gives them the flexibility to launch new products or react to production fluctuations.


Over time, many business processes have been developed to deal with the challenges faced by Australian manufacturers. From their inception, many of these ERP software programs have missed the mark by not fully addressing the production plan needs of Australian manufacturing companies of different sizes.

If you are looking for a scalable cloud-based solution with a full set of manufacturing resource and production planning tools that have been designed specifically to meet the needs of manufacturing companies, the experienced and accredited OneKloudX team is ready to help you. Contact the OneKloudX team on or 1800 155 683 to talk to a Senior NetSuite Consulting Team Member.

If you’ve got questions, the OneKloudX NetSuite experts can answer them in a free Discovery Session.
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Still unsure? Looking for more information?
You can learn more by watching this demo video about NetSuite’s MRP functionality