Optimizing Inventory Management: Addressing Our Client’s Tracking and Valuation Challenges
One of our NetSuite clients faced significant challenges with tracking inventory being stored for customers, leading to inaccurate inventory tracking, and overstating their inventory asset value.
The Challenge:
Our client sells wine to their customers but stores it at their warehouse until the customer requests bottles be shipped to them. They needed a way to know what they had in stock for each client while not having the value of those items shown on their books (because they are owned by the client), and they needed a way to be able to easily move wine into and out of storage.
Our Solution:
We came up with the following solution for them:
Create and assign a “Storage Location” for each customer
Create multiple Sales Order forms (“Storage” for the initial sale & “$0 Fulfillment” when the wine is sent to the customer from storage).
Create a custom scripted solution for Storage Sales Orders. Whenever an Item Fulfillment is shipped from a Storage Sales Order, a $0 Inventory Adjustment into the Client’s Storage Location is created for all the wine on that Item Fulfillment. An Invoice is also automatically created for each Item Fulfillment, which applies to the Customer Deposit they have previously recorded on the Sales Order.
When the customer requests wine be shipped to them from their storage, a $0 Fulfillment Sales Order is created which allows our client to select the original Storage Sales Order. A script populates the customer’s Storage Location as well as all the original wine from that order into the line items with a Sales Price of $0. They can then add or remove items, add freight, or additional charges if needed, and create an Item Fulfillment when the wine is shipped. An Invoice is automatically created after the Sales Order is marked Shipped.
Create a custom Average Cost field on the item records that only shows the Average Cost of that item at their Main Warehouse location so that they can see the actual Average Cost of them item without the impact of the $0 Inventory Adjustments.
The Impact:
This solution enables our client to easily track the wine in stock for each customer and efficiently ship items when requested. It significantly reduces the time previously spent on inventory management.
The solution also ensures correct accounting by reporting accurate inventory asset values. Additionally, our client can track the wine's value for insurance purposes using a custom Average Cost field multiplied by the quantity of bottles in storage.
#ClientSuccess #Innovation #InventoryManagement #davandiallc
