What is NetSuite? Get to Know This Cloud-Based ERP Leader

In our ERP industry comparison guides, we often recommend Netsuite for many reasons, namely because it is highly rated by businesses across various industries, achieves high satisfaction and retention rates among its customer base, and is affordably priced. It is often a good choice for businesses looking to upgrade from Quickbooks to their first true ERP system.

As an ERP solution, NetSuite allows businesses to streamline core processes and offers real-time operational and financial performance visibility. Our case study library has many excellent examples of real businesses that have seen improved efficiencies and overall growth after implementing this powerful system.

In addition, this system’s benefits span many manufacturing industries, meaning you will likely find businesses in your industry sector experiencing success with NetSuite on board. As we always emphasize in our guidelines, your chosen ERP system must be proven in your industry.

With its robust functionality, NetSuite helps businesses of all sizes to manage their operations more effectively. It simplifies complex processes, provides customizable dashboards and reports, and offers a detailed analysis of business activities, resulting in an efficient overview.

NetSuite’s capabilities extend internationally, providing global operations management with support for multiple languages, currencies, subsidiaries, and legal entities.

This scalability is essential for organizations expanding their footprint worldwide while maintaining standard business practices across all divisions.

Key Points

• Oracle NetSuite offers a cloud-based, integrated ERP suite for business management, encompassing various functions from accounting to supply chain operations.
• Real-time data and customizable reporting within NetSuite enhance operational visibility and decision-making.
• The platform supports global business management, allowing companies to manage diverse and geographically dispersed entities effectively.

Overview of Oracle NetSuite Software

Netsuite was originally started in 1998 as ​“NetLedger,” one of the very first ​“web-based” accounting systems, offering services through online access instead of the typical on-premise applications most businesses were utilizing at that time. Adding CRM and other ERP capabilities, the pioneer cloud system was rebranded to NetSuite in 2003 and grew strongly as a cloud-based enterprise resource planning solution serving 37,000 customers worldwide. 

By 2016, Netsuite became a billion-dollar company and was then acquired by Oracle in one of the largest Enterprise software mergers in history. Today, backed by Oracle’s powerful platforms and technologies, Netsuite offers various functionalities, streamlines critical business processes, and enhances decision-making through real-time data visibility.

Core Functionalities

General ERP Capabilities: Like most ERP systems, NetSuite integrates various back-office functions, from inventory and supply chain management to production and material management. This integration supports better resource planning and real-time updates on critical operations.

• Inventory and Supply Chain: Real-time tracking and optimization of inventory levels and supply chain activities.
• Production Management: Coordination and supervision of production processes to enhance efficiency.

Financial Management: Netsuite offers a dynamic financial management suite that accelerates the financial close process, enhances revenue management, and ensures real-time visibility into your company’s financial performance. Netsuite simplifies expense management and provides a robust, auditable system for complete financial control.

• Revenue Management: Efficient handling of revenue recognition and billing solutions.
• Expense Management: Streamlined tracking and reporting of company expenditures.

Netsuite CRM : By integrating ERP systems with CRM, Netsuite improves business process management across the company. This integration enriches customer service, order fulfillment, and overall operational efficiency.

• Sales & Order Management: Improved tracking and processing of orders for enhanced customer engagement.
• Customer Support & Service: Streamlined management of customer inquiries and support cases.

E‑commerce Solutions: Netsuite provides robust e‑commerce platforms that link seamlessly with ERP and CRM systems, fostering an environment supportive of comprehensive order management and customer experience.

• Website and E‑commerce: Integrated tools for managing online sales and customer interactions effectively.

Optimized Operations: Businesses experience a significant operational uptick due to automated processes and enhanced visibility, which drive productivity and informed decision-making through customizable dashboards.

• Automated Back-Office Processes: Automation of routine tasks, freeing up resources for strategic activities.
• Role-Based Dashboards: Tailored insights for different organizational roles to promote efficiency.

NetSuite Cloud Platform

As mentioned, Netsuite is attributed for inventing ​“hosted” ERP and is often credited for coining the phrase ​“In the Cloud”. Rest assured, Netsuite is a true cloud-based ERP system and has been the industry leader in cloud ERP for the last two decades. This is an important distinction, as many other ERP vendors had to scramble over the last 15 years to rebuild their systems in the cloud. It might be worth asking other vendors, ​“How long have you been in the cloud?”.

Upon exploring NetSuite solutions, it becomes crystal clear that the NetSuite Cloud Platform is an all-encompassing and powerful cloud-based ERP system offering exceptional business management capabilities.

Cloud ERP Benefits

Utilizing NetSuite’s Cloud solution, organizations gain scalability and flexibility, which are essential in the fast-paced business environment. Cloud ERP facilitates real-time data access, ensuring that the most current information informs decision-making. Key benefits include:

• Reduced IT Costs: The nature of the cloud eliminates the need for on-premise infrastructure, cutting down on IT expenditure.
• Accessibility: Users can access the system anytime, anywhere, with an internet connection, boosting productivity.

SuiteCloud Developer Tools

NetSuite’s SuiteCloud is a comprehensive offering of cloud development tools, frameworks, and infrastructure that allows you to create, customize, and extend NetSuite to meet your business needs. The SuiteCloud tools are pivotal in the following:

• Development Freedom: With SuiteCloud Developer Tools, you can build new applications and functionalities within the NetSuite ecosystem.
• Seamless Integration: These tools facilitate seamless integration with both third-party apps and existing software, such as OpenAir, NetSuite’s services resource planning platform for project management.

NetSuite ERP Components

NetSuite’s ERP system provides a comprehensive tool suite that addresses various business management and operations aspects. Our focus highlights the system’s core components, which are integral for optimizing and streamlining company practices.

Materials Management

In materials management, Netsuite tracks and controls materials effectively to ensure operational continuity. This includes overseeing procurement, inventory levels, and efficient material usage.

Real-time tracking aids in minimizing waste and maximizing material utilization, which you can explore in detail through NetSuite’s Materials Management module.

Sales & Order Management

Netsuite enhances the sales process for sales and order management, from order capture to fulfillment. Netsuite ensures accuracy and customer satisfaction with streamlined workflows.

These tools assist in managing quotes, orders, and invoices, seamlessly integrating with inventory for real-time insights.

Financial Management

Managing finances requires precision and foresight, which are achieved with Netsuite’s robust financial management tools.

These tools cover everything from ledgers and receivables to payables and fixed asset management. A solid Financial Management framework ensures thorough financial reporting and compliance.

Production Management

Efficiency in production management is key to maintaining a competitive edge. Netsuite guides businesses through production planning, scheduling, and execution.

This ensures that the processes align with supply and demand and are driven by detailed production insights.

Supply Chain Management

Netsuite’s approach to supply chain management involves overseeing the entire supply chain lifecycle, from planning and sourcing to distribution.

The system provides transparency and agility in the supply chain processes, which is critical in responding promptly to market changes.

Streamlined Supply Chain Management processes are vital for an optimized supply network.

Customer Relationship Management

Netsuite reinforces the importance of customer interactions and relationship building.

Its Customer Relationship Management (CRM) capabilities equip businesses with tools to better understand customer needs, manage leads, and support marketing efforts, cementing strong customer connections.

Inventory Management

Effective inventory management is crucial to meeting customer demands without overstocking.

Netsuite’s inventory management system helps track inventory levels, set reorder points, and manage stock across multiple locations to balance demand and supply.

Other Netsuite Features

Netsuite offers a robust suite of features designed to accommodate a variety of business functions. We outline its key capabilities below and point out a few key features for each category:

Analytics and Reporting

Netsuite provides deep business performance insights with real-time analytics and reporting tools.

These features allow for customized dashboards and reports that aid in data-driven decision-making.

• Real-time Dashboards: Track KPIs, reports, and analytics.
• Custom Reports: Create reports specific to your business needs.

Artificial Intelligence Features in Netsuite ERP

The system incorporates AI to streamline business processes through predictive insights and automation.

• Intelligent Forecasting: Predict future trends using AI algorithms.
• Process Automation: Streamline workflows with AI-driven tools.

Learn more about AI in the leading ERP systems in our research report.

Human Resources

Netsuite offers a comprehensive human resources (HR) solution for managing every aspect of the employee lifecycle.

• Employee Onboarding: Streamline the hiring and onboarding process.
• Payroll Management: Efficiently manage payroll with integrated tools.

NetSuite for E‑commerce

Netsuite empowers businesses with a unified platform that creates seamless online commerce experiences.

• Online Storefronts: Build and manage custom web stores.
• Order Management: Automate order processing and tracking.

NetSuite for Project Management

Our project management tools help deliver projects on time and within budget.

• Project Tracking: Monitor project progress in real-time.
• Resource Allocation: Optimize the use of resources for various projects.

Customer Support and Services

Netsuite’s advanced customer support offers superior customer service tools and comprehensive support features.

• Case Management: Log and track customer support cases.
• Knowledge Base: Provide customers with a self-service portal for common queries.

Summary of Netsuite ERP Benefits

Cost Reduction: By automating routine tasks with Netsuite ERP, you’ll see fewer errors and can scale operations without proportionally increasing the workforce. This automation streamlines our resources, from manpower to inventory, leading to cost savings.

Enhanced Visibility: Having all processes in one system allows monitoring project statuses and overall business function performance, empowering managers with timely information and improving overall decision-making capabilities.

Robust Reporting and Analytics: The advanced reporting tools within Netsuite ERP enable you to keep track of essential KPIs and analyze vital metrics. Access to comprehensive data helps you understand the interplay between different departments and how changes affect business overall.

Centralization of Information: With real-time data across organizations, the ERP system helps spot significant trends and insights, fostering better strategic moves made with confidence based on accurate, centralized information.

Regulatory Compliance: Netsuite ERP assists in navigating the complexities of financial reporting and data security regulations. It provides an audit trail, automates adherence to compliance regulations, and delivers compliant financial reports, bolstering data integrity and security commitment.

Risk Management: By leveraging precise data and real-time operational visibility, Netsuite ERP aids in managing risks efficiently, reducing the potential for human error, and responding swiftly to business disruptions.

Data Security: Critical and sensitive data is safeguarded through the ERP’s advanced security measures, ensuring protection in the ever-evolving cyber threat landscape.

Productivity Boosts: Collaboration is key, and Netsuite ERP breaks down silos by facilitating the seamless sharing of information like contracts and customer records, thereby enhancing team productivity.

Scalability and Flexibility: As you grow and change, Netsuite ERP scales and adapts with you. It supports unique processes and workflows specific to business needs, which means we’re equipped for both the present and the future.

Improved Customer and Partner Engagement: Netsuite ERP software allows you to better manage customer and partner relationships, offering insights and streamlining communication to enhance service quality and satisfaction.

Accurate Forecasting: Finance teams leverage the ERP system for dynamic financial forecasting. This alignment with budgeting systems ensures you adjust plans swiftly based on live data for reliable, informed decision-making.

NetSuite for Global Business

We understand the complexities of managing a global business, from handling multiple currencies to ensuring compliance across different countries.

NetSuite equips international companies, including those in the United States, United Kingdom, Hong Kong, Singapore, and Australia, with the necessary tools to operate efficiently worldwide.

Handling Multiple Currencies

Global businesses face the need to transact in various currencies daily.

With NetSuite, handling multiple currencies is streamlined thanks to features such as live currency rate updates and automated currency conversion.

This system supports over 190 currencies and exchange rates, enabling seamless transactions and accurate financial consolidation across subsidiaries.

For example:

• United States: USD transactions are converted in real-time for a UK subsidiary.
• Singapore: SGD dealings are efficiently managed and reported in the parent company’s preferred currency.

Compliance Across Borders

Staying compliant with regional regulations is a significant concern for our international clients.

NetSuite’s tax and audit capabilities are robust and designed to manage compliance efficiently. For example:

• United Kingdom: NetSuite supports VAT requirements and changing regulations post-Brexit.
• Hong Kong & Singapore: The platform aligns with local financial reporting standards.
• Australia: It ensures compliance with ATO (Australian Taxation Office) regulations.

NetSuite for Manufacturing Businesses

We recognize the need for tightly integrated business processes in the manufacturing sector.

Netsuite facilitates the management of everything from work orders and bills of materials (BOMs) to demand planning and product assembly.

To read further about key strategies manufacturing businesses can use to improve processes with Netsuite, download this white paper from the Top10erp​.org white paper library for a deeper dive.

Manufacturing Industries Using Netsuite Enterprise Resource Planning

NetSuite ERP serves a diverse range of manufacturing industries with tailored solutions to meet their unique needs, including:

• Aerospace & Defense — Managing intricate components
• Agriculture — Optimizing resources
• Apparel & Textiles — Navigating complex supply chains
• Automotive — Staying ahead in a rapidly evolving industry
• Electronics & High Tech — Tracking rapid product cycles
• Consumer Packaged Goods — Ensuring quality control and supply chain visibility
• Food & Beverage — Inventory precision and traceability
• Medical Devices — Regulatory compliance and quality management
• Industrial Machinery — Asset and work order management
• Transportation & Logistics — Handling intricate projects on a global scale
• and many more

NetSuite offers highly advanced and adaptable ERP systems specifically designed to assist manufacturing businesses of all industries in streamlining their processes, acquiring valuable insights, and expanding their operations easily.

NetSuite ERP Implementation

Netsuite implementation is a transformative process involving tailoring the platform to meet specific operational needs.

Netsuite Modules and Customization

NetSuite’s platform is highly customizable, allowing you to adapt its wide range of modules to the unique processes of each business.

Modules span various functions such as CRM, ERP, and e‑commerce, ensuring a comprehensive suite of tools catering to different business operations.

We recommend taking the following steps in customization:

• Identify Requirements: Map out the key business processes to align with the relevant NetSuite software modules.
• Configure and Customize: You can enhance functionality by utilizing SuiteApps, third-party applications certified for NetSuite.
• Test and Refine: Conduct thorough testing to ensure customizations meet the specific needs before going live.

NetSuite Partners and Support

Partnering with a certified NetSuite Partner can be helpful for successful ERP system implementation.

These partners provide vital support and expertise, ensuring that the software is implemented correctly and tailored to your requirements. Here’s how they help:

• Expert Guidance: NetSuite solution providers deliver strategic advice to optimize system configuration.
• Ongoing Support: You can receive continuous support for maintenance and updates, ensuring long-term success.

See our ERP Implementation Guide for more advice on the implementation process.

Netsuite Pricing & Cost Considerations

When evaluating Netsuite pricing, it is important to understand the key factors that contribute to the total ERP cost:

• Subscription Fee: This annual or monthly fee is the core of Netsuite’s pricing model. Flexible payment options, such as monthly installments, can accommodate growth and cash flow needs.
• Support Services: Basic technical support is included, but upgrading to Premium Support provides ²⁴⁄₇ assistance and expertise. Customized ongoing support is also available, which is vital for complex customizations and integrations.
• Implementation Services: The streamlined SuiteSuccess option offers rapid deployment with pre-configured features. One can assess if it meets customization and integration requirements or if a more tailored approach is preferable.
• Contract Length: Longer contracts of 3 – 5 years provide budget predictability and may offer discounted pricing, for which favorable terms can be negotiated.
• Sandbox Account: This replica environment enables testing and development without disrupting live operations and is available for an additional fee.
• Service Tiers: Upgrading tiers brings expanded capabilities, such as dedicated database storage, faster integrations, and handling of high transaction volumes as needs scale.

The Total cost of Netsuite reflects unique needs. By optimizing these elements, maximum value can be delivered within the budget when purchasing Netsuite. Guidance simplifies cost planning and ensures the investment is tailored for long-term success.

See our ERP pricing guide for a deeper understanding of the cost of ERP systems.

Netsuite Frequently Asked Questions

This section addresses common inquiries about NetSuite and its impact on core business operations, training, certification, and comparisons with other software solutions.

When did Oracle acquire Netsuite?

On July 28, 2016, Oracle announced its definitive agreement to acquire NetSuite, the first cloud company, for $9.3 billion. The acquisition closed on November 7, 2016. Oracle and NetSuite’s cloud applications were seen as complementary. 

What purposes does NetSuite serve for businesses?

NetSuite provides a comprehensive suite of cloud ERP applications designed to manage business finances, operations, and customer relations. It integrates various functions like ERP, CRM, and e‑commerce into a unified platform for streamlined operations.

How does the NetSuite ERP system enhance company operations?

The NetSuite ERP system offers real-time visibility into critical business data, automates essential processes, and manages financials, supply chains, inventory, etc. This leads to increased efficiency and reduced operational costs for companies.

What are the necessary steps to achieve NetSuite certification?

To gain NetSuite certification, candidates must prepare through study and experience, register for the exam, and pass it. The preparation involves thoroughly understanding NetSuite’s features and functionalities.

What skills will you gain through NetSuite training?

Through NetSuite training, one will acquire skills in navigating the platform, managing financials, creating reports, customizing the system to meet specific business requirements, and understanding best practices for utilizing NetSuite’s various modules.

How does NetSuite differentiate from QuickBooks in functionality?

NetSuite offers a broader range of functionalities than QuickBooks, including ERP, CRM, and e‑commerce capabilities. This makes it suitable for mid-sized to large businesses, whereas QuickBooks is generally tailored to meet the accounting needs of small to medium-sized businesses.

Is NetSuite considered equivalent to SAP in terms of business solutions?

NetSuite and SAP provide extensive business solutions but cater to different market segments. Large enterprises often favor SAP for its advanced features and customization options. Meanwhile, NetSuite is more commonly chosen by small to mid-sized businesses for its comprehensive, out-of-the-box features and ease of use.