Is NetSuite Material Requirements Planning included with NetSuite ERP?

NetSuite Material Requirements Planning is a native NetSuite feature, but it must be enabled and licensed separately. It also depends on other NetSuite features, such as Demand Planning and Advanced Inventory Management, to function effectively. A NetSuite partner can help determine licensing and configuration requirements.

How is NetSuite MRP different from Demand Planning?

Demand Planning focuses on forecasting future demand based on historical data and trends. NetSuite Material Requirements Planning takes that demand and translates it into actionable supply recommendations, such as purchase orders, work orders, and transfer orders. In short, Demand Planning predicts demand, while NetSuite MRP plans how to fulfill it.

Can NetSuite Material Requirements Planning support multi-level manufacturing?

Yes. NetSuite Material Requirements Planning supports multi-level Bills of Materials (BOMs) and uses multi-level pegging to trace demand from finished goods down through sub-assemblies and components. This makes it well-suited for manufacturers with complex production structures.

Does NetSuite MRP work for distributors as well as manufacturers?

Yes. While NetSuite Material Requirements Planning is often associated with manufacturing, it is also valuable for distributors. It helps distributors manage reorder quantities, lead times, safety stock, and multi-location inventory while aligning supply with customer demand.