Understanding NetSuite Implementation Costs

Implementing a new ERP system can be overwhelming, so let’s make understanding NetSuite implementation costs easier. The benefits of implementing NetSuite can be significant and outweigh the cost of an implementation in the long run.

Your NetSuite implementation cost depends on the needs of the business and a few other factors. By carefully considering the cost and ROI of implementing NetSuite, businesses can determine the benefits to their processes and how NetSuite can provide economical solutions in the long run.

How much does it cost to implement NetSuite?

NetSuite implementation costs can vary depending on the size and complexity of the business. Below are two main factors that go into the cost of a NetSuite implementation:

Factors to Consider for Your NetSuite Implementation Cost

Several factors can impact NetSuite implementation costs:

Number of Users

Typically, the more users a business has, the higher the licensing and implementation costs will be. This is because more users require more licenses and more time and resources to set up.

Customizations Needed

One of the biggest factors that can affect the NetSuite implementation cost is the level of customization required. NetSuite is a highly customizable system, and many businesses require customizations to meet their specific needs. The level of customization required can significantly impact the cost of implementation. Customizations can include everything from custom reports and workflows to custom fields and forms.

Data to be Converted

The amount of data that needs to be converted from existing systems to NetSuite can significantly impact cost of implementation. The more data that needs to be migrated, the more time and resources will be required to ensure a smooth transition. This can include data mapping, data cleansing, and data validation. The complexity and format of the data can also affect the cost of implementation.

Number of 3rd-Party System Integrations

NetSuite can integrate with a wide range of third-party systems, including CRM, e-commerce, and payroll systems. The more integrations that are required, the more complex the implementation process can be. The cost of implementing each integration will vary depending on the complexity of the integration and the level of customization required.

Business Complexity

The complexity of a business can also affect NetSuite implementation cost. For example, a multi-entity organization with elaborate financial structures and reporting requirements may require more customization and configuration than a simpler organization. A business with multiple locations, warehouses, or sales channels may also require more customization and configuration.

Number of Sites

NetSuite can be used to manage multiple sites, including warehouses, retail stores, and manufacturing facilities. NetSuite implementation becomes more elaborate when more sites need to be managed. Additional fees may also be required for each additional site managed in NetSuite, therefore increasing the cost to implement NetSuite.

Aside from licensing and implementation costs, businesses should also consider ongoing support costs. While upgrades with NetSuite are free, ongoing maintenance and technical support will likely be required to maintain a high-functioning system. NetSuite provides ongoing support, but businesses may also need to hire a third-party consulting company, like Terillium, to handle these tasks. Ongoing support can include employee/new hire training, report writing, implementation of new modules, technical support, administrative tasks, and more.

NetSuite’s pricing is a subscription-based model, where customers pay a recurring fee for access to the software and support. The pricing is determined by the size of the business, the number of users, and the level of functionality required.

NetSuite also offers add-on modules, including advanced financial management tools, project management tools, and human resources management tools. These modules are based on the specific needs of each business.

Implementing NetSuite can provide a significant ROI for your business in the long run. Here are some examples of the ROI businesses can expect from implementing NetSuite:

1. Increased Efficiency and Productivity

NetSuite can streamline your business processes and automate many of your manual tasks, which can increase efficiency and productivity. This can result in faster turnaround times, improved customer satisfaction, and reduced costs.

2. Better Financial Management

NetSuite provides real-time financial visibility and control, which can help businesses make informed decisions and improve financial management. This can result in better cash flow management, reduced accounting errors, and improved financial reporting.

3. Improved Supply Chain Management

NetSuite provides end-to-end visibility into your supply chain, from procurement to fulfillment. This can help businesses optimize their supply chain, reduce costs, and improve customer satisfaction.

4. Scalability

NetSuite is a highly scalable solution that can grow with your business. This can save businesses the cost and hassle of switching to a new ERP solution as they grow.

5. Improved Decision Making

NetSuite provides businesses with real-time data and analytics, which can help businesses make informed decisions. This can result in better forecasting, reduced risk, and improved profitability.

While NetSuite implementation cost can be a significant investment, the ROI it can bring to your business can be substantial. Increased efficiency and productivity, better financial management, improved supply chain management, scalability, and improved decision-making are just some of the benefits businesses can expect from implementing NetSuite. By carefully considering the cost and ROI of implementing NetSuite, businesses can make an informed decision about whether it’s the right solution for their needs.