NetSuite vs. SAP: A Comparison Guide for Thriving Manufacturers

While searching for an ERP solution that can help run smart and efficient operations, growing businesses, particularly the ones in the manufacturing industry, have many options. Most importantly, selecting an ERP solution is a major investment and high-stake decision that directly impacts the company’s growth and simplifies its management as well.

Moreover, manufacturing businesses or production units ready to move past entry-level systems can consider offerings from NetSuite and SAP.

SAP offers several midmarket ERPs competing with one another and varies in its strategic importance to the software provider. On the other hand, NetSuite is fully dedicated to one product offering and delivers proven methodologies to scale businesses of all sizes.

To have a better sense of these systems offerings, you can go through

NetSuite vs. SAP: An Overview

Features	SAP	ORACLE NetSuite
Production Management	YES	YES
Inventory Management	YES	YES
WIP and Routing	YES	YES
Work Orders and Assemblies	YES	YES
Shop Floor Control	YES	YES
Bill of Material	YES	YES
Deployment	On-premise and Cloud	Cloud
Pricing Options	One-time License Fees	Subscription-based pricing model
Localization	Limited	Multi-company and consolidation

What Is an ERP Solution?

An ERP solution functions like the central nervous system of a business’s technology stack. It utilizes a central database to put data from across your business.

These may include

• Financials
• Inventory
• Orders
• Customers
• Employees — in one place.

Most importantly, an ERP system can connect data and processes that touch multiple departments to drive automation and simplify key operations while rendering reports and insights on your business’s fundamentals.  

NetSuite ERP

NetSuite ERP is a business management solution that offers an array of modules to help businesses, including manufacturing or production units, better manage their financials and operations.

With the deployment of NetSuite ERP solutions, you can increase automation across the business and streamline key processes without any hassle. Eventually, it results in improved customer experiences and enhanced employee productivity.

Although accounting and financial reporting are at the heart of NetSuite ERP, its extensive capabilities for manufacturing have made businesses sit back and relax while managing everything at their fingertips.

Other Key Features cover

• Inventory Management
• Order Management
• Professional Services Automation
• Customer Relationship Management
• Reporting and Analytics
• Planning and Budgeting
• Human Resource Management
• Both B2B and B2C E-Commerce

Additionally, NetSuite puts critical business data from all of these business functions in one, integrated place via intuitive dashboards and delivers easy-to-use reporting tools to generate the insights needed.

From the beginning, NetSuite has been a multi-tenant cloud system deployed via the software-as-a-service (SaaS) model. It instigates that all businesses running NetSuite get automatic biannual upgrades, patches, and security updates, too. Interestingly, all NetSuite ERP customers are always on the same version of the software.

SAP

SAP comes with three systems for small and midmarket companies and they have traction with businesses in certain verticals or of a particular size. For instance, SAP S/4HANA and Business One can be deployed on-premises or via the cloud, while SAP Business ByDesign is a cloud-based, SaaS product.

All three ERP systems come with

• Accounting And Finance Features Support
• Inventory Management
• Manufacturing
• Professional Services
• Human Resources

For the most part, customers can connect these ERP platforms to other SAP solutions to avail of expanded capabilities such as analytics, human capital management, CRM, procurement, expense management, or e-commerce. However, these are not similar to NetSuite modules as these are often built on different codebases and require complex integrations.

Also, businesses are compelled to use complementary SAP software engineered for enterprise-level businesses due to a lack of good alternatives.

NetSuite vs SAP S/4HANA

SAP S/4 HANA stands for Suite 4 HANA. It is a new-generation ERP solution running on SAP HANA database architecture. SAP S/4HANA Cloud is orchestrated to drive instant value across all lines of business and industries.

In terms of business intelligence and reporting tools, SAP S/4HANA has a big advantage over NetSuite. Strong suites of SAP’s HANA in-memory relational database management system include analytics, data modeling, and database management.

Additional capabilities include

• Machine Learning-enabled Business Processes
• Real-Time Embedded Analytics
• Automated Group-wide Processes
• Live Material Requirements Planning
• Delivery Delay Prediction And Intelligent Remediation

Overall, while comparing NetSuite vs. SAP S/4HANA, you must consider the needs of your industry as both systems can handle your manufacturing and supply chain management needs.

Operations: NetSuite vs. SAP

NetSuite ERP	SAP Business One
The core NetSuite ERP products come with deep inventory management functionality and modules.	Business One is popular with products companies like retailers, distributors, and manufacturers.
NetSuite Demand Planning— You can make the most of this functionality to extract data from your ERP to build demand and supply plans based on prior sales. It includes MRP capabilities to create production plans and bills of material (BOMs) for manufacturing.   NetSuite WMS—Manufacturing businesses can avail of this module to boost productivity and reduce waste in the warehouse.   NetSuite SuitePeople— This inventive solution can address your business needs across payroll, workforce management, or performance management.	SAP Business One has native inventory management and material requirements planning (MRP) functions.   Also, it comes with some HR management features.   However, the system has no native offerings for supply chain, warehouse management (WMS), or more advanced manufacturing.   It has limited demand planning capabilities and customers need to purchase multiple third-party solutions and integrate them with SAP Business One ERP.

Why You Should Choose NetSuite Over SAP?

If your business comprehends the value of a true cloud, ERP system, NetSuite ERP is the clear choice over SAP.

For the most part, the NetSuite ERP solution is engineered to eliminate the need for an IT staff or consultants to handle upgrades. Also, your in-house team and employees will appreciate a system built to run on the web— right from Day 1.

Interestingly, No SAP solution offers this level of functionality along with the benefits of a SaaS system.

NetSuite ERP offers an integration-free suite of modules to its customers that SAP cannot match. Although SAP comes with robust applications, many fail to integrate well with your ERP system as they are not built on the same platform.  

Additionally, Business leaders or CFOs can see all the information they need to review regularly in customizable dashboards provided by NetSuite ERP. This ERP solution sets you up for success and helps you get the most out of the platform—from pre-sales through implementation, and support.

Finally, considering the stability NetSuite offers, you must go for the company that has only ever offered one product that has never been scaled back or replaced in its 25-plus years of existence.

At NetSuiteExpert, you can connect to accredited and skilled NetSuite Consultants and make the best of their expertise, industry-centric practices, and proven methodologies across successful NetSuite implementation. Not only do they deliver uncompromised ERP solutions, but support throughout the implementation lifecycle and beyond it for business continuity.

To comprehend NetSuite vs. SAP for your business, write to us at info@netsuiteexpert.in Or Schedule A Demo