Managing Expanding eCommerce Channels in Your Warehouse

The opportunity to grow sales through eCommerce is undeniable. However, for the team running the NetSuite warehouse, this growth opportunity can be a doubled-edged blade. New orders and customers are always welcome, but the fulfillment complexities can create a broad range of challenges for the warehouse, including:

• A wider variety of order mix: order size, SKU variation, order volume, requiring different picking models;
• Growing requirements based on customer and channel such as status updates and documentation;
• More complex inventory allocation as well as wider variety of pack and shipping options.

For the most part, the increased volume and complexity is often expected to be handled with the same staff. Peak volumes need to be executed flawlessly with temporary staff and minimal training. Finally, the speed at which the channels and requirements are changing accelerates and requires an extremely agile operation that scales up and down rapidly while accommodating new processes.

NetSuite provides the most flexible/agile solution to handle the end-to-end order management process. Extending your NetSuite warehouse to meet the demands above is critical to supporting your eCommerce opportunity. Let’s look at each of the aforementioned challenges with some tailored recommendations.

A Wider Variety of Order Mix

As the order mix changes, the picking process becomes more complex. Common divisions include wholesale orders versus eCommerce (consumer) orders; other examples include single item orders versus multi-item, as well as priority orders based on customer, delivery date, order value, etc.   The operational objectives are to minimize pick time while achieving the highest pick/ship accuracy. Mobile technology using bar code scanning can create huge productivity improvements. These include guided walking paths through the warehouse to minimize pick time, bar code scanning to increase accuracy, and real time NetSuite integration to ensure control and visibility.

There are also smaller steps you can take with your NetSuite warehouse operation, such as batch picking with a master pick list. This is suitable for large numbers of single item eCommerce orders and can streamline these simpler fulfillments. One of the most common NetSuite extensions is to create a combination branded pack slip with an integrated shipping label. This combines the pack/ship steps, cutting down on effort and errors.

Growing Requirements by Customer and Channel

Each channel often has unique requirements in terms of providing the customer with visibility to order status and documentation. For example, a recent customer added Groupon; in addition to being able to handle large batch order processing, Groupon requires a branded pack slip. With multiple channels, each requiring branded pack slips, advanced ship notices, specific labeling, or different shipping charges, processing these without automation is a recipe for disaster.  A temporary warehouse worker could easily mix up the multiple requirements - for example, using a Lowes branded pack slip instead of Home Depot. This not only results in penalties and fees, but it also jeopardizes the relationship with the customer. Capturing and automating these rules not only saves costs and time, it could also increase output and reduce space requirements. A simple suggestion/solution is to consolidate pack and ship stations or domestic shipping and international, eliminating staging areas.

More Complex Inventory Allocation

With increased sales channels the transportation options and needs become more complex. It could be driven by consumer promotions, such as free shipping, or more consolidated freight shipments to wholesale channels. With mode optimization and business rules, you can automate the selection of the right carrier and service while balancing the costs and customer expectations. For example, when offering free shipping to consumers, the lowest cost option would be selected, using services such as UPS SurePost. Alternatively, in a B2B scenario, where the customer has a defined delivery date, it may be justified to automate a service upgrade based on time in transit to ensure the delivery is made on time. The additional transportation cost outweighs any penalties or customer relationship issues.

In summary, to ensure profitable growth coming from new eCommerce channels, you must ensure that your end-to-end NetSuite fulfillment is automated.

Guest post courtesy of Oz Development. 

Oz Development is the provider of OzLINK. OzLINK is a set of cloud-based solutions that integrate and automate the order management process. OzLINK streamlines functions from eCommerce through to the warehouse and shipping. OzLINK has created value for more than 10,000 customers in manufacturing, wholesale distribution, retail, and the health care industries. Oz Development is privately held with global headquarters located in Westborough, MA, USA.
For more information on Oz Development solutions and service, please visit http://www.ozdevelopment.com

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Brian Hodgson provides strategy and execution of Oz Development’s sales and marketing. His responsibilities include market strategy, go-to-market, marketing/communications, sales channels, and demand management activities to drive Oz Development’s growth. Prior to Oz Development, Brian was Chief Marketing Officer for Kewill PLC, a global software provider specializing in trade and logistics solutions. Brian brings more than 20 years of experience in high tech sales & marketing to Oz Development, having held executive sales, marketing and business development roles at Kewill, Eleven Technology, and SupplyWorks. Brian holds a BA degree in electrical engineering from the University of  Waterloo.

April: Tips and Tricks

1. Saved Searches Using Internal IDs

Here are some tips from Guru Mathieu Goodman to help in the creation of search filters using internal ID:

1. If you want to use numerical value (greaterthan, equalto...) always use 'internalidnumber' instead of 'internalid'
2. If you are using internalid with the anyof operator make sure the id list is not null or undefined. The error thrown when trying to use a null list is confusing and tell you the opreator is wrong. 

2. Use Item Cost as Transfer Cost


When the functionality to use Item Cost as Transfer Cost is activated, the Transfer Price still defaults to Transfer Price from item. The amount of transfer order is also set to that Transfer Price.

However, when the transfer order is fulfilled and received the average cost is used (ignoring the transfer
price and amount from the transfer order). This works with FIFO, LIFO and Average Cost methods.

The inventory worksheet value defaults to Average Cost for location; if there is no value as of the date of the inventory worksheet it is defaulted to Purchase Price. Meanwhile, the inventory adjustment value defaults to Average Cost for location. If there is no value as of the date of the inventory adjustment it is defaulted to 0.

Using the ‘Quick Reorder Module’ to turbocharge your sales ordering process

Entering sales orders can be a lengthy process and its time is multiplied by the number of items you need to input. Time is money and every business is looking to speed up their process to get as many orders in as possible. We at ERP Guru came up with a module to facilitate order entry.

One of our customer requested a sales reordering screen that would allow him, with only a couple of quick clicks, to create a sales order based on historical values. Basically the screen would populate a list with all items ordered by this customer in the past and it would display the values of this item when it was last ordered.

For example, let’s say customer X has ordered broccoli 10 times in the past. The last time it was ordered for a quantity of 10 and a rate of 2$. On the quick reorder module, broccoli would be displayed with a pre-populated quantity of 10 and rate of 2$. The user would simply need to click on the ‘Quick Reorder’ column to add this item up to the sales order. In a matter of a couple of clicks the entire sales order would be ready to be submitted!

What if the customer wants to order an item he has never ordered before? We have the ‘New Items’ tab for that! This tab allows the user to select from the entire list of items in the system. When an item is selected, the quantity is defaulted to 1, the unit rate is defaulted to the item’s base price and the amount to quantity times unit rate. So once again, in a single click an item is added to the sales order!

And if your customers have a high volume of items the screen will not be clogged up thanks to our pagination system. This pagination system splits the items in subsets (number of items per page is customizable) and allows navigation and persistence of items added from each page. In the example below the pages are based on dates last ordered but again this can be customized (for example if you prefer having them sorted by item name it can be done).

This is the basic behavior our ‘Quick Reorder’ module provides. We can customize it even further in order to adapt to your specific needs and tailor it to your process. If you think the ‘Quick Reorder’ module can help out your business contact us and we will be happy to assist you.

Written by: Frédéric Jannelle

DTAPP to the Rescue!

Sustainable growth has always been the challenge (and the triumph when achieved), to most small- and mid- sized enterprises (SMEs) around the globe. In general, companies in most or all industries strive to keep a healthy stream of growth in personnel, periodic sales, and efficiency; of course there are many other areas a business would attempt to grow.

The Canadian government has put in place a subsidized program called “Digital Technology Adoption Pilot Program” or DTAPP for short. The program’s goal, according to Industrial Research Assistance Program (IRAP), is “to speed up the rate at which SMEs in Canada adopt digital technology and build digital skills through new and existing networks and relationships with colleges and organisations across Canada, and provide them with access to expertise in the digital technology adoption field.” In layman’s terms, the Canadian government is investing heavily in resources to help SMEs hire consultants, among other resources, to help them evaluate the aspects of their business that may need improvement and also help them adopt solutions to solidify their growth.

NetSuite, currently a popular and frequently evaluated solution by the members of this grant, is a great tool to help your company reach that exact goal. NetSuite is the industry's first and leading online business application that supports your entire company, from Customer Relationship Management (CRM) to Enterprise Resource Planning (ERP) to Web capabilities (eCommerce). If you qualify to partake in this government program, they will be covering 50% of your consulting fees and 80% of your internal costs throughout the process of evaluation and implementation of NetSuite. It is a great way to start working on making your business more efficient, while taking advantage of great financial benefits.

The conditions to qualify, apply and to get more information on the grant, can be found on the National Research Council Canada site. You can also read success stories on their website about companies like yours who have been able to use ERP/CRM technology to better their processes. RossVideo, a company that provides their customers with products in the media industry, is a great example.

The Canadian government’s significant investment is geared towards achieving growth for their SMEs by encouraging business owners/operators to adapt digital technology. They deem this to be a very important step for growth, and a flag for the future of companies who aren’t innovators or perhaps fear change within the organization. DTAPP is a great way to take that leap into 21st century technology in order to increase overall productivity and sustainable growth.

Written By: Andrew Khalil

CSV Importing Matrix Items

An item Matrix consists of a parent item and sub-item. It allows you to track your items by options (ie, size, color etc). With this set up, only children items can be used on transactions. Some examples of this include Vintages for Wine (ie, Sauvingon Blanc 2013, 2012, 2008..etc), tools with variations, and t-shirts.
Matrix items cannot be created for groups, kits, and assemblies but include the following:

• Inventory Item
• Lot Numbered Inventory Item
• Serialized Inventory Item

• Non-Inventory Item for Sale
• Non-Inventory Item for Resale
• Non-Inventory Item for Purchase

• Service Item for Sale
• Service Item for Resale
• Service Item for Purchase

• Other Charge Item for Sale
• Other Charge Item for Resale
• Other Charge Item for Purchase

How to Create Matrix Items

1. Use the Matrix Item Assistant in UI
+ creates options and items with a click
- 1 process per matrix, not for mass import
2. CSV Import
+ mass import
- requires preparatory work
3. Full Manual Process

Preparation Work for CSV Import

First an Administrator must enable the Matrix Items feature under Setup > Company > Setup Tasks > Enable Features under the Items & Inventory subtab. 

Next, set up a custom list and custom item field for each matrix option. These can  be found respectively under Setup > Customization > Lists, Records, & Fields > ...

CSV Import

Matrix Created

Editing an Existing Item Matrix

You can only edit certain fields on matrix subitems, all others can only be edited on the parent matrix item. It should be noted that fields edited on subitems are only changed for that specific item, and that there is a limit in NetSuite of 2000 child matrix items per parent matrix item.

The following matrix subitem fields are editable:

• Item Name/Number
• Display Name/Code
• Vendor Name/Code
• Purchase Description
• Sales Description
• Shipping Cost
• Handling Cost
• Item Weight
• Purchase Price
• Sales Price
• Reorder Point

Updating a Matrix

There is an "Update Matrix" menu on the parent item. With CSV tool, each child matrix item record must be updated individually.

Add Items to a Matrix

There is an "Add Items" menu on the parent item.




In the User Interface, names are auto-generated however the items can be edited later.

Known CSV Limitations

• You cannot change matrix option values for existing child matrix items
• You cannot change the parent matrix item (subitem of value) for existing child matrix items
• You cannot change the matrix type value for existing matrix items (ie, from child to parent)
• Each child matrix item record must be updated individually

Content by: Felix Guinet