Efficiency Unleashed: A Case Study on Streamlining Procurement with Auto Creation of Purchase Orders  

Overview

Our client, facing difficulties in ensuring timely restocking, sought to streamline their procurement process. They wanted to leverage technology to automate critical business processes, improving supply chain dynamics. To rectify their roadblocks, they opted for NetSuite from SuiteMatrix, a reliable NetSuite solutions provider, to automate purchase order creation based on specific criteria.

Challenges Faced

• Instances of stockouts or overstock situations.
• Difficulty in maintaining optimal inventory levels.
• Manual creation of purchase orders led to inefficiencies and errors.

Solution Offered

• Data Analysis

The first step involved a thorough analysis of historical sales data over the past three months. This data was used to identify trends and patterns in item sales, helping to determine when specific items were running low in stock.

• Script Development

A custom script was developed within NetSuite to automate the creation of purchase orders. This script utilized Suite Script, NetSuite’s JavaScript-based scripting language. The script was designed to run regularly on the 1st and 15th of every month, examining inventory levels and triggering the creation of purchase orders when necessary.

• Vendor Preference Integration

The system was configured to prioritize preferred vendors for each item. This ensured that purchase orders were directed to the vendors with whom the organization had established favourable terms, fostering stronger vendor relationships and potentially securing better pricing.

• Notifications

The system was configured to notify relevant personnel whenever a purchase order was generated to keep stakeholders informed. This feature allowed for quick review and approval, maintaining a level of human oversight while still benefiting from automation.

Result

The integration of automated purchase order creation within NetSuite, with the help of SuiteMatrix’s NetSuite Consultants, yielded significant improvements across various aspects. Operational efficiency was enhanced as the procurement process streamlined, reducing time and effort previously spent on manual tasks. Optimized inventory management practices were implemented, preempting stockouts and mitigating overstock situations by aligning with historical sales data. This resulted in tangible cost savings and bolstered financial performance. Moreover, integrating vendor preferences strengthened relationships, potentially improving pricing and favourable terms.