How to Fix the 3 Most Common Inventory Management Mistakes in NetSuite

Inventory is one of the largest assets on most balance sheets and one of the easiest to mismanage. Even with a system as capable as NetSuite, the wrong setup can cause delays, cash flow issues, or confusion across your operations.

Here are three of the most common inventory management mistakes we see and how to solve them using NetSuite’s built-in features.

Mistake #1: Manual Reordering or Outdated Reorder Points

It’s common for teams to place purchase orders reactively waiting until inventory gets low or someone flags a shortage. Often, reorder points are set during initial implementation and never updated. This leads to overstocking, stockouts, or both.

What to do:

• Configure Reorder Point or Min/Max strategies at the item level
  

• Enable Demand Planning to forecast future inventory needs based on actual or projected usage while considering lead times
  

• Use saved searches to flag items nearing reorder thresholds or to help re-evaluate if existing reorder points are still appropriate
  

• Set automated alerts for the purchasing team
  

• Build dashboard portlets for real-time visibility
  

Mistake #2: Lack of Visibility Across Locations and Bins

When inventory tracking relies on spreadsheets or manual updates, warehouse teams lose clarity. This causes fulfillment errors, missed shipments, and added overhead.

How to solve it:

• Enable Multi-Location Inventory and Bin Management
  

• Use Item Location Configuration to define stocking rules by site
  

• Create saved searches and dashboards tailored to each location lead
  

• For higher volume environments, NetSuite WMS enables barcode scanning, guided put away, and efficient pick/pack/ship workflows

• The Supply Allocation feature in NetSuite gives your business insights into where your inventory is to be used in real time, allowing for greater visibility. Follow Racette to hear more in a follow up post soon!
  

Mistake #3: Over-Customizing Inventory Records

Custom fields and scripts can feel like a necessary fix but over time, they can create redundancy, slow performance, and add risk during system upgrades.

Here’s the better approach:

• Audit item records for unnecessary or unused customizations
  

• Align workflows to shift back to standard NetSuite transactions like Inventory Adjustments, Transfer Orders, and Statuses
  

• Use business process controls and saved searches to replace scripts and workflows
  

• Consider a system health check to evaluate where native tools can replace custom workflows
  

Final Takeaway

NetSuite has the functionality to manage inventory efficiently– it just needs to be aligned with how your business actually runs. Addressing these three issues is often the difference between reactive operations and proactive control.

Need help optimizing your NetSuite inventory setup?
Racette Consulting specializes in aligning NetSuite with real-world operations. Whether you're scaling fast or fine-tuning existing processes, we help you get more out of what NetSuite already does best.

Christina Fontaine, Principal Consultant, Racette Consulting