NetSuite Enters SAP's Core Market With New On-Demand Vertical Suite for Manufacturers

    NetSuite Expands Lead in Vertical Suites by Leveraging Core Strength In
    Wholesale / Distribution to Tackle Demands of Light Manufacturing

    TORONTO, June 12 /CNW/ -- NetSuite Inc. (NYSE:   N), a leading vendor of
on-demand, integrated business management software suites for the mid- market
enterprise and divisions of large companies, today announced a new vertical
suite for manufacturing companies.  NetSuite for Manufacturers, which includes
new functionality for Assembly, Work Order and Bill of Materials, takes aim at
SAP's core market and seeks to exploit the prolonged delay of SAP's Business
ByDesign product roll-out, providing mid-sized manufacturers with an
integrated on-demand solution they can put to work today.
    "NetSuite has been offering vertical suites for the wholesale /
distribution industry for a while with a proven track record," said Bruce
Richardson, Chief Research Officer, AMR Research.  "Manufacturers have been
longing for SaaS offerings to build better overall total cost-of-ownership.
Until this release from NetSuite, there haven't been any broad SaaS product
offerings that include financials, CRM, Ecommerce and manufacturing.  The on-
demand suite approach-pioneered by NetSuite-could prove to be a major market
    Today's new release leverages the core strength of the NetSuite Wholesale
/ Distribution Edition-launched in April 2006-and is a natural progression of
NetSuite's leading role in delivering Software-as-a-Service (SaaS) business
suites designed to address the specific requirements of vertical industries.
NetSuite's offering for manufacturing, initially aimed at the light
manufacturing sector, is also the latest example of how NetSuite's SaaS-based
business management technology has evolved to address more complex processes
in industries long dominated by on-premise vendors such as SAP.  The company's
rapid move into manufacturing comes at a difficult time for SAP, as they have
struggled to deliver their own on-demand offering, Business ByDesign, to
address customer requirements in their core market. NetSuite for Manufacturers
now gives SAP customers and others an option they can purchase and deploy
without delay.  For more information about NetSuite for Manufacturers, please
    Manufacturers Have Varying Challenges
    Light manufacturing businesses typically overlap with wholesale /
distribution and span a huge spectrum of categories from apparel to furniture
to small electronics. Regardless of which category a light manufacturer is in,
the challenge has always been the management of the bill of materials,
assembly build and work order process for both production orders that add to
general stock levels, as well as special orders built uniquely for one
customer. Software traditionally used by mid-market light manufacturing
companies encompasses dozens of on-premise silo applications-one for
accounting, one for customer relationship management, one for work orders, one
for inventory management, one for warehouse management.  The list goes on.
This fragmented approach can add large IT cost, introduce a high rate of
errors throughout the business process, provides little visibility on
available-to-promise inventory, and decrease business efficiency and accuracy.
    Enterprise Power at Lower Total Cost-of-Ownership
    NetSuite for Manufacturers provides companies with essential visibility
into the key build processes that light manufacturers need to compete
effectively in the market. Since NetSuite's delivery model is SaaS and all
functionality and data is within one system, the total-cost-of-ownership is
greatly reduced and light manufacturers gain the following benefits:
    --  Greater insight into production processes - from inventory, to
        assembly, to demand based replenishment;

    --  Real-time visibility throughout the entire organization - from sales
        to warehouse operations to invoicing;

    --  Minimal integration hassle - NetSuite provides one system to manage
        the end-to-end business life-cycle;

    --  Cost savings - reduced IT costs, reduced labor costs and reduced

    --  Reduced risk - instant information can help reduce time to respond to

    --  Stay competitive in the ever competitive global economy for light
    Powerful Functionality Key to Light Manufacturers
    NetSuite adds a myriad of important functionality that is key to running
a light manufacturing business. The new features unveiled today include:

    --  Assembly Management - building on NetSuite's core strength in
        inventory and warehouse management, assembly items have been extended
        specifically for light manufacturers which enable companies to more
        effectively manage component quantities and multi-level assemblies.
        Assemblies are closely tied with work orders and allow for multi-level
        assemblies to be built one level at a time, or all at once.

    --  Work Orders - new work order capabilities allow light manufacturers to
        readily manage the build process for production work orders to
        replenish standing inventory levels of finished goods or special order
        work orders built to exact specifications for a particular customer.
        For example, a furniture light manufacturer may have standard sized
        wood or glass-top dining tables they build on an on-going basis, but
        they may also offer custom-sized dining tables as a special order for
        individual customers.

    --  Bill of Materials (BOM) - any build process requires a bill of
        materials that outlines what components are required to successfully
        build the finished good. BOMs are tightly coupled with both
        assemblies and work orders and cover the components required for a
        single assembly plus all the components required by a particular work
        order. Assembly instructions can also be included in the printable BOM
        in PDF format.

    --  Demand-Based Inventory Replenishment - light manufacturers can now
        dynamically set re-order points and preferred stock-levels for both
        components of assemblies as well as finished goods based on a variety
        of factors including average lead time, historical or seasonal sales
        demand, and number of days from supply to stock. Work orders drive the
        demand for components as they are completed, thereby automating the
        replenishment of source materials and components.
    "Today's launch of NetSuite for Manufacturers validates our strong
commitment to vertical industries by delivering functionality designed to
drive greater efficiencies and competitiveness," said Mini Peiris, NetSuite's
VP of Product Marketing. "NetSuite enables manufacturers to automate complex
business processes without the cost and complexity of cobbling together
multiple business applications, and numerous spreadsheets.  As a result,
customers can stop wasting precious resources and start focusing on increasing
customer service levels, cutting costs, and growing their businesses."
    Pricing and Availability
    NetSuite for Manufacturers is available now at $1199 CAN per month and
$120 CAN per user per month.
    For more information about NetSuite Inc., please visit
    NOTE: NetSuite and the NetSuite logo are registered service marks of
NetSuite Inc.

For further information:

For further information: Mei Li of NetSuite Inc., +1-650-627-1063, Web Site:

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