Automating Item Substitution in NetSuite
For businesses handling large volumes of inventory, item substitution becomes critical when back orders threaten to delay customer deliveries. NetSuite provides a native Item Substitution feature as part of the SCM module, which addresses some of these challenges. However, depending on your business model, a more customized approach might be necessary to handle complex substitution rules, priorities, and inventory availability.
In this blog, we will explore how Racette Consulting has enhanced the standard item substitution process with a custom User Event Script and custom records. Our solution automates the substitution process based on priority and available quantities, providing an improved workflow for businesses that need more than the out-of-the-box functionality.
This article will guide you through:
NetSuite's native Item Substitution functionality and limitations.
How our custom solution automates and enhances the substitution process.
The benefits of choosing a tailored approach.
1. Overview of NetSuite’s Native Item Substitution Feature
Item Substitution in NetSuite allows businesses to replace items that are out of stock on sales orders. The system will alert you when an item is unavailable and lets you manually select a substitute. This process works well for simpler business models where substitutions are infrequent and can be managed manually.
Key Features:
Supports Inventory Items, Assembly Items, and Lot/Serial Numbered Items.
Allows manual substitution on sales orders.
Facilitates substitution based on inventory availability during order entry.
While NetSuite’s native functionality is powerful, there are some notable limitations that make it less ideal for businesses with complex substitution needs:
Users must manually choose substitute items on a sales order. This can slow down the order fulfillment process, particularly if items need to be substituted frequently.
NetSuite only allows one substitute item per backordered item, which may not meet the needs of businesses that need multiple substitution options.
There is no automatic prioritization of substitutes based on inventory levels, nor can multiple substitution rules be applied dynamically.
Item Substitution does not support Non-Inventory items
2. Introducing Custom Item Substitution Solution
Our custom solution takes NetSuite’s functionality to the next level by automating the entire item substitution process. Using SuiteScripts, we scan for backordered items on sales orders and automatically substitute them based on predefined rules.
Fig 1. Automation Flow Chart
Step 1: Detecting Back Ordered Items
Every time a sales order is created, edited, or approved, our script automatically identifies any backordered items.
We use a condition to determine if an item is backordered. The condition checks if the Backordered Quantity is greater than zero, or if the difference between Quantity Ordered, Quantity Committed, and Quantity Fulfilled is greater than zero. This ensures that we capture items that still need to be fulfilled. This logic can either be built into the script directly or sourced through a Saved Search, depending on your specific needs.
Step 2: Searching for Item Substitution Records
Once backordered items are detected, our script searches for matching custom Item Substitution Records. These records contain predefined substitution options that allow for flexibility in replacing the backordered items.
Each substitution record includes the backordered item, potential substitutes, the priority, and the type of substitution. The system searches for the most appropriate record based on these parameters.
Fig 2. Example Item Substitution Record
Step 3: Evaluating Available Quantities
Before proceeding with a substitution, the script checks the available quantity for the substitute item in the substitution record.
The script compares the required quantity of the backordered item with the available stock of each substitute. If a substitute doesn’t have enough quantity to meet the order’s needs, it is skipped, and the script moves to the next substitute in the priority list.
Step 4: Prioritizing Substitutes and Automating the Substitution
Item Substitution Records are ranked based on their priority. The substitute item with the highest priority (lowest number) is evaluated first. If this item meets the quantity requirement, it is automatically selected as the replacement. If it does not, the script moves to the next substitute in line, following the same evaluation process. This ensures that the best available option is always chosen.
Once the appropriate substitute is found, it is automatically swapped into the sales order, replacing the backordered item without manual intervention from the user.
Step 5: Logging Substitution Summary and Errors
Goal: To maintain transparency and provide traceability
A custom field on the header of the Sales Order, Item Substitution Notes, tracks all substitutions made, including details such as the original item, the substitute used, and the quantity. This log allows the sales and fulfillment teams to see exactly which items were substituted and with what.
Fig 3. Item Substitute Notes custom field on Sales Order
Error Handling: If no suitable substitute is found or if none of the substitutes have sufficient quantity, the script logs detailed error messages. These errors, such as "Insufficient Substitution Quantity" or "Substitution Record Not Found," are captured and reported via a Saved Search. This search provides real-time visibility into substitution issues and can be configured to alert the appropriate teams for swift resolution.
Fig 4. Error Logs Report
3. Key Benefits of Our Custom Solution
Increased Efficiency: By automating the item substitution process, you save valuable time and reduce errors, ensuring orders are processed without delays or manual intervention.
Flexible Substitution Rules: With our custom solution, you can configure multiple substitution options, prioritize them, and dynamically swap items based on real time availability.
Improved Customer Satisfaction: Ensuring orders are fulfilled, even with backordered items, means you can maintain high service levels without delays or cancellations.
At Racette Consulting, we tailor solutions that go beyond standard NetSuite functionalities to meet the unique needs of your business. Our custom Item Substitution solution ensures a seamless and automated experience, offering you flexibility and control over your inventory processes.
Want to learn more about how our customized item substitution can work for your business? Reach out to us at help@racetteconsulting.com and let’s start a conversation!
Author: Arnav Vats
Role: Technical Consultant - Analyst