ERPNuggets

NetSuite Wholesale Distribution Pricing: Understanding NetSuite For Wholesale Distribution

NetSuite Wholesale distribution

As a wholesale and distribution company your business processes revolve around managing and tracking inventory right from when you buy it till it is dispatched to the retailers. One of the early focus of NetSuite was to cater the Wholesale distribution business.

A wholesale business is generally spread across locations and is a complex business. It is difficult to manage the supply chain without having a ERP which supports anywhere anytime access. This is where a true cloud ERP like NetSuite become advantageous for such businesses. 

Is NetSuite Good For Wholesale Distribution Companies?

NetSuite was built to run on cloud and this makes it a very good fit for a wholesale business. Being a true cloud based platform, Oracle NetSuite provides you with dashboards and reports which gives you real-time visibility on your business.

With NetSuite you get multi location inventory management and advanced inventory controls to accurately track and have company wide inventory visibility even to a bin level.

Once implemented, you get complete visibility on your dead inventory, Inventory turnover time, fast moving SKU as well as any inventory which in on-order or booked against a particular customer order. 

Although the system is very matured on the process front, NetSuite lacks in some basic reports which might be required by some distributors. A classic example of this is the “aging inventory” report.

Many customers ask for this repost but it needs to be customized by your implementation partner or the consultant you are working with. 

Overall considering the benefits of NetSuite for the wholesale distribution business and the featured provided by its competitors NetSuite defiantly scores very high and is a good fit for Wholesale Distribution companies.

Features Of NetSuite For Wholesale Distribution Companies

What Are The Available Add-On Modules For Wholesale Distribution NetSuite?

Although NetSuite comes with the necessary features required for wholesale distributors, there are a few add-on modules you should consider which will help your business goals, strengthen supplier relationships, provide better business intelligence helping you drive customer satisfaction.

Each add-on module helps you drive your entire business on a single platform. 

The add-on modules available for wholesale distributors are:

Inventory Management Cloud Services: This module provides you the ability to manage your reorder points, manage landed cost and adds ability for managing barcode, serialized and lot numbered inventory.

NetSuite Demand Planning Cloud Services: With Demand planning cloud services you can make demand and supply plans allowing you to follow the Just in time(JIT) inventory management concept.

NetSuite WMS Cloud Services: This Module allows you to manage your entire supply chain on a mobile device. With WMS module you can do your entire inbound logistics, order fulfilment, warehouse management and bin management over a mobile device. NetSuite WMS also gives you ability to have multiple barcodes for a single SKU.

Although NetSuite has a WMS module, it is still in its very early days and required a lot of development, specifically on the shipment rule definitions. There are partners like rfsmart who have developed much better solutions for this and are available on NetSuite’s SuiteApp website.

NetSuite Grid Order Management Limited Cloud Service: If you multi-attribute SKUs (Eg. Shirt Blue – Size 42) This module helps simplify the entry and management for such items.

NetSuite Pricing For Wholesale Distribution

A typical bill-of-material of NetSuite for a single subsidiary Wholesale distribution companies would be as below:

NetSuite Mid-market edition – $2499 per month

NetSuite Inventory Management Cloud Services – $599 per month

NetSuite Demand Planning Cloud Services – $599 per month

NetSuite WMS Cloud Service – $999 per month

NetSuite Full Access Users – $99 per user per month

If you need multi-subsidiary environment, you will have to subscribe to NetSuite OneWorld module which will cost you $999 per month with Unlimited subsidiaries in a single country for a single currency. 

If you need to expand to other countries or need additional currencies (Reporting currency) you will have to subscribe to NetSuite OneWorld Additional Country/Currency Cloud Service.

In totality if you are a Wholesale Distribution Company with a single subsidiary and want to subscribe to NetSuite for 10 users it will cost you $5,686 per month ($68,232 Yearly) before discounts.

NetSuite provides you good discounts on their global list prices.

NetSuite Wholesale Distribution Edition Pricing

Apart form the option of selecting your own Add-On, NetSuite also provides you with pre-packaged offering called as NetSuite Wholesale/Distribution Mid-Market Cloud Service consisting of all the add-ons we discussed which you can subscribe to for $4499 per month. Unless you do not need any of the add-ons mentioned above, you can opt for the pre-packaged offering instead of individual add-ons. This will help you reduce the total cost of NetSuite licenses for its wholesale and distribution offering.

How Much Does NetSuite Cost To Implement For Wholesale Distribution Companies

NetSuite implementation cost for wholesale distribution companies is between $25,000 to $40,000 for a remote implementation. If you would want the consultants to be on-site the cost is expected to go 2.5X to 3X of the remote implementation cost.

NetSuite being on cloud, it is not necessary for NetSuite ERP consultants to be onsite.

A very important statistics is that 80% of the NetSuite implementations are done remotely.

NetSuite Videos For Wholesale Distribution

NetSuite Demand and Supply Planning
NetSuite Advanced Inventory Management

NetSuite For Wholesale Distribution Companies - User Reviews

NetSuite has been one of the favourite ERP when it comes to wholesale and distribution companies.

Looking at the reviews you can clearly understand that many users like the system for its ease of use, flexibility in reporting and the upgrades NetSuite provides every year. While a few complain of the slow nature of NetSuite.

It is important to note that NetSuite tends to become slow if there are many customizations done and scripts loading on form load.

Below are a few user reviews form G2 

needs to be more streamlined
the product continues to evolve and get better
Very Laggy
Very user friendly and intuitive operation

Conclusion for Wholesale Distribution Companies

NetSuite is a very good fit for wholesale and distribution companies considering the features it provides and its cloud nature allowing business users to access the system from anywhere. By using NetSuite you can reduce lack of visibility on your inventory also also get detailed analytics on your stock outs and other distribution processes. NetSuite is a complete solution to manage your marketing automation, sales, financials, Demand Planning & Supply Management Solution. NetSuite also is capable of integration with your retail channels to provide a complete business flow without any manual intervention.

Read the latest articles from our experts

Leave a Reply

Your email address will not be published. Required fields are marked *