How NetSuite and Workato Power Outsourced Manufacturing Automation

In today's competitive global marketplace, sourcing companies need powerful solutions to manage increasingly complex supply chains. As I explained in my recent OnePacific webinar on outsourced manufacturing, businesses are increasingly designing their own products or moving toward higher-quality items that can't be sourced from a single supplier. In these scenarios, Oracle NetSuite combined with Workato's integration capabilities creates a powerful ecosystem for managing the entire outsourced manufacturing process.

(Check out the full webinar below)

Outsourced Manufacturing in NetSuite

Oracle NetSuite provides a comprehensive platform for managing the entire outsourced manufacturing process. This cloud-based ERP solution offers several advantages specific to sourcing companies:

• Automated Workflow Management: NetSuite automatically generates work orders from purchase orders (or vice versa), eliminating manual tracking.
• Real-Time Inventory Visibility: Track component inventory throughout the production process in a single platform.
• Multi-Entity Support: Support for multi-company, multi-country, and multi-currency operations.

The Purchase Order Flow in NetSuite

For sourcing companies familiar with purchasing cycles, NetSuite streamlines the process while adding manufacturing controls. You create purchase orders to vendors as usual, and NetSuite automatically generates corresponding work orders. You can then track production progress through these work orders and close purchase orders when production is complete. This automation ensures nothing falls through the cracks while providing real-time visibility into manufacturing status.

The Work Order Flow in NetSuite

For companies more focused on manufacturing, NetSuite offers an alternative approach. Create work orders for what you need produced, and NetSuite automatically consolidates requirements into purchase orders by vendor. The system tracks production and inventory movement automatically, allowing you to manage the entire process from design to delivery in one system.

Enhancing NetSuite with Workato Integration

While NetSuite provides robust core functionality, Workato takes automation to the next level by connecting NetSuite with other critical systems. This no-code integration platform allows you to connect NetSuite with customer systems, streamline vendor communication, and integrate with internal tools like CRM and project management software.

What makes Workato particularly powerful for NetSuite users is its pre-built connectors. These ready-made integrations allow you to connect NetSuite with other popular platforms in hours or days rather than weeks of custom development.

Workato "Recipes" for NetSuite Users

Workato uses a "recipe" model that makes it easy to create powerful automations:

• Drag-and-drop interface requires no programming knowledge
• Create custom business rules based on your specific needs
• Set up real-time updates or scheduled batch processes

For example, a sourcing company might create a Workato recipe that monitors NetSuite work order status and automatically notifies customers when their orders move to the next production stage. This type of automation would previously require custom programming but can now be implemented in hours.

Combining NetSuite, Workato and RPA for Complete Automation

For organizations looking to maximize efficiency, combining NetSuite, Workato, and Robotic Process Automation (RPA) tools creates a comprehensive automation ecosystem:

• NetSuite: Manages core business processes and data
• Workato: Connects NetSuite with other systems
• RPA: Handles repetitive tasks that involve legacy or external systems

This combination is particularly powerful for vendor management in outsourced manufacturing scenarios. Contract manufacturers often send production updates via email with attached spreadsheets. RPA bots can extract the relevant data from these communications, Workato transfers this data into NetSuite, and NetSuite updates work order status and inventory positions.

Companies implementing this approach have reported productivity increases of over 450% with 82% faster processing times for these workflows.

Financial Benefits of NetSuite for Outsourced Manufacturing

One of the most significant advantages of managing outsourced manufacturing in NetSuite is the ability to capture accurate costs. The system ensures all relevant expenses are properly categorized, from raw materials and labor to shipping and other production-related expenses.

This comprehensive tracking gives finance teams a true picture of costs of goods sold (COGS) and enables accurate profitability analysis at multiple levels:

• Product profitability
• Order profitability
• Customer profitability
• Contract manufacturer performance

Implementation Approach

If you're considering implementing NetSuite and Workato for your outsourced manufacturing operations, here's a recommended approach:

1. Start with business requirements: Understand your current process challenges
2. Implement NetSuite core functionality: Begin with fundamental manufacturing processes
3. Identify integration points: Determine where Workato can add value
4. Start with a pilot project: Implement a small-scale integration to demonstrate value

Most organizations can implement a basic NetSuite and Workato pilot in just days or weeks, providing rapid return on investment.

Conclusion

As sourcing companies continue to focus on quality and product development, outsourced manufacturing becomes increasingly attractive. NetSuite provides the core platform to manage this process, while Workato extends its capabilities through seamless integration with other systems.

This combined approach not only increases efficiency and visibility but also positions your organization to scale effectively and make data-driven decisions. With pre-built connectors and no-code interfaces, implementing these powerful tools has never been more accessible.