NetSuite Manufacturing Pricing: Understanding NetSuite For Manufacturers
Manufacturing is the core for any economy and you need the right systems to scale. NetSuite is one such ERP system which helps you streamline your business processes.
If you are looking at NetSuite as a manufacturing solution, then you have come to the right place. We will help you understand the pricing model of NetSuite and also help you understand if NetSuite is fit for your manufacturing processes.
What Is NetSuite?
NetSuite is an enterprise resource planning (ERP) software that can be used by manufacturers. It has become very popular in recent years due to its ease of use and flexibility. The software offers several modules like accounting, CRM, e-commerce, inventory management, warehouse management etc. You can easily integrate these modules with other applications using API’s.
Is NetSuite Good For Manufacturing Companies?
Yes! NetSuite is good for manufacturing businesses because it provides all-inclusive solutions for managing every aspect of your business from sales to production. It integrates seamlessly with many third party applications and services. This makes it easy for you to manage your entire manufacturing and supply chain process.
But Is NetSuite Good For All Kinds Of Manufacturing?
NetSuite is a good solution for discrete manufacturing. If you are a hardware manufacturer or manufacturing shoes NetSuite will support in all your needs. Oracle NetSuite also supports project based manufacturing with some customisations to the standard solution offering.
But If you are into process manufacturing, NetSuite is not the right fit. NetSuite does not support Recipe/Formula Management like chemical or pharmaceutical manufacturer need them to be. Managing byproducts and re-using them is a big area of concern in NetSuite. There are a lot of SuiteApps or plugins which have been developed by partners to meet this gap but you would be better with other ERP systems like SAP to cater to your requirement considering the dept of offering you will have.
What Are The Available Manufacturing Modules In NetSuite?
NetSuite is a modular system and provides multi-tired offering for its manufacturing capability. NetSuite categorises its manufacturing offering as:
- Work Orders & Assemblies: This module has all the basic manufacturing features needed by small companies who do assembly manufacturing. You will be able to perform Make-to-Order as well as Stock-to-Order scenarios.
- WIP & Routings: When you go with this module you get features like Routing Definition and Labor Costing, WIP tracking and Infinite Capacity Scheduling.
- Advanced Manufacturing: This module will give you features like Finite Capacity Scheduling, Rough Cut Capacity Planning, Batch Management & Control and Manufacturing Execution. Even though the features look great for Advanced Manufacturing, we do not recommend it as we have sees a few limitations in this offering.
Below table will give you a good idea on the differences of the these modules.
NetSuite Manufacturing Pricing
NetSuite pricing for manufacturers is based on the modules we select. We can either do ala-carte selection or we can directly go with NetSuite Manufacturing edition depending on the total subscription cost.
A mid sized manufacturing company with a single subsidiary or legal entity and 10 users will have the following bill of material (BOM):
- NetSuite Mid-market edition – $2499 per month
- NetSuite Inventory Management Cloud Services – $599 per month
- NetSuite Work Orders & Assemblies Cloud Services – $599 per month
- NetSuite WIP & Routings Cloud Services – $599 per month
- NetSuite full access users – $99 per user per month
How Much Does NetSuite License Cost for Manufacturing Companies?
NetSuite pricing for Manufacturing companies with the assumption of 10 users and the above mentioned modules would be $51,552 per year ((2499+599+599+599+99*10)*12 months). You can expect 50% – 60% discount on the yearly pricing if you negotiate with NetSuite.
As you grow your business you would also need Demand and Supply Planning. NetSuite provides a module called NetSuite Demand Planning cloud services which helps you manage your demand and supply plans for raw materials. This module is priced at $599 per month.
If you have multiple subsidiaries or legal entities in the same country you would also need NetSuite OneWorld module which support multi-subsidiary consolidation and inter-company transactions. NetSuite OneWorld is priced at $2499 per month.
If you have operations in multiple countries, you would need additional country licenses as well. Each additional country license will cost you $799 per month.
Considering these price points, NetSuite ERP does not turn out to be a cost effective solution for Small Business which are involved in manufacturing activities.
NetSuite Manufacturing Edition Pricing
If you don’t want to buy individual modules, you can go with NetSuite bundle for manufacturing.
NetSuite provides 3 variants of its manufacturing edition:
- NetSuite Manufacturing Limited Cloud Service: This edition includes the following add-on modules
- NetSuite Inventory Management Cloud Service
- NetSuite Grid Order Management Cloud Service
- NetSuite Work Orders & Assemblies Cloud Service
You can buy maximum 10 users with limited manufacturing edition. If you want more than 10 users you will need to shift to the mid-market edition.
NetSuite Manufacturing edition is priced at $1599 per month. in addition to this the users are billed at $99/month/user.
- NetSuite Manufacturing Mid-Market Cloud Service: This edition includes the following add-on modules
- NetSuite Inventory Management Cloud Service
- NetSuite Grid Order Management Cloud Service
- NetSuite Work Orders & Assemblies Cloud Service
- NetSuite Demand Planning Cloud Service
- NetSuite Manufacturing WIP & Routing Cloud Service
With the mid-market edition you can have upto 999 users. if you want more than that you will have to shift to enterprise edition.
NetSuite Manufacturing Enterprise Cloud Service: This edition has the exact same features of the mid-market edition but is used if you have more than 999 users.
How Much Does NetSuite Cost To Implement For Manufacturing Companies
The cost to implement NetSuite is determined by the effort which will go in the implementation which includes setting up the business processes, customising the system for functionality which does not come out of box, building business intelligence reports and the necessary integrations needed with other applications you may use.
The cost is also determined by the resources you use. You can find cheaper resources in India, UAE or Singapore where as the cost of resources is much higher (nearly 2.5X) in countries like North America, Canada, United Kingdom or Australia. It will depend on your confort level and budget on which resources you would want to use for your implementation.
The cost of implementing NetSuite for a manufacturing company with 10 users and a single legal entity is between $25,000 – $30,000 if we do not consider any integrations and customisation. The cost will increase substantially if you want onsite services for your implementation.
NetSuite Manufacturing Videos
NetSuite Demand & Supply Planning
NetSuite Assembly and Bill of Materials
NetSuite Work in Process (WIP) and Routing
NetSuite For Manufacturing Companies - User Reviews
Individuals review NetSuite differently based on their need and the corresponding functionality offered by NetSuite ERP.
While some users feel that NetSuite has all the needed features for manufacturing companies with a very Good UI/UX other users complain about the missing functionality in NetSuite for their business processes.
Positive User Reviews Of NetSuite For Manufacturing
On the positive side some users liked the WIP and Routing functionality for the price point it comes for, some users also commented on the good looking UX/UI design and ease of use and adoptability of NetSuite for Manufacturing companies. Some users liked the continues innovation that NetSuite does which enables them to leverage new technology with low implementation cost.
Negative User Reviews Of NetSuite For Manufacturing
While there were positive reviews, some users complained of lack of features in the standard offering and the need to purchase add-on to meet their requirement.
Conclusion for Manufacturing Companies:
NetSuite is a good Software for Manufacturing companies with very good customisation capability. It can cater to most of the manufacturing processes and is a very good fit for discrete. manufacturers. If you are into process manufacturing, you must do a through research if NetSuite can meat your requirements in an optimal cost.
For License pricing and negotiation strategies for NetSuite Manufacturing modules, you should consult a professional who has been in this field as the pricing structure is complex and there are multiple scenarios which dominate the discount percentage.
Implementation cost for Manufacturing companies planning to use NetSuite will differ based on the modules you use and the customisation requirement. It will also differ based on where the resources are located.
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