NetSuite Users: Have You Outgrown Item Commitments?

Facing the truth can be hard - especially when it means you will have to welcome something "new" into your life. But if there's signs you've outgrown Netsuite item commitments, it's time to face the facts. If the following apply to you, it may be time to switch to the NetSuite 2019.2 new feature Supply Allocation.

Signs you've outgrown NetSuite Item Commitments

-Do you regularly re-commit inventory to ensure sales and/or work orders can be completed?

-Do you need to consider future orders but not ALL future special orders?

-Do you need to commit items in different ways (standard orders vs replacement orders)?

-Are you manually entering transfer orders after reviewing a search?

NetSuite Supply Allocation vs Item Commitments

 

Item Commitments

Supply Allocation

When is your inventory effected?

With the preference Perform Item Commitment After Transaction Entry active, NetSuite  performs automatic inventory allocation when new item quantities become available.  NetSuite will automatically remove available quantities from sales orders, work orders, and transfer orders in limited scenarios

 

 

When you enter demand orders such as sales or transfers, the allocation engine also considers planned inventory orders, such as transfer orders and work orders, to match supply with demand based on the date that supply is required. When Supply Allocation matches demand orders that have future ship dates to supply orders with future receipt dates, on-hand inventory remains available to fill immediate demand orders.

 

When is your inventory distributed?

Item commitments can be done manually, by order priority, by expected ship date, or by transaction date.

 

 

Supply allocation calculations assess current and future inventory supply and determine the best ways to allocate supply to the demand on orders.

 

What is the advantage?

If multiple orders are changed and a large amount of inventory is removed, your setting determines which orders are affected and which orders get items allocated first. Quantities will be de-committed based on the quantity is reduced on the transaction with a committed quantity and the oldest transaction date.

 

Create an allocation strategy to define the rules used to allocate particular inventory. You can create multiple strategies, then choose them on demand order lines to specify the way inventory is allocated to respond to that demand.  These calculations are based on the allocation strategies defined on order lines.

 

Supply Allocation is one of many enhancements NetSuite offers to make your Supply Chain seamless. To learn more ways NetSuite can enhance supply chain - and your business - send an email to our NetSuite experts.

1 thought on “NetSuite Users: Have You Outgrown Item Commitments?”

  1. item commitment; does it work with both Reorder Point Replenishment and Demand Planning. I am working within an environment where are set up to use Reorder Point Replenishment, but there is no item commitment when I open a production work order to build assemblies/FG. We updgraded To Advanced Inventory Mgmt plus Work Orders and Assemblies so we could determine Finished Goods in process along with the knowledge of member items (Quantity Available). This “enhancement” was purchased from NetSuite along with an SOW on how this worked. We never got to the “how it worked” portion. Does item commitment require “Demand Planning” or will it work with Reorder Point Replenishment?

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