Why Managing Direct Spend in NetSuite Sets Life Science Companies Up for Commercial Success

Are you making it harder on yourself by separating direct spend from your ERP? 

Commercialization is already a heavy lift. You’re scaling production, managing complex supply chains, meeting regulatory requirements, and trying to stay ahead of operational risks unique to the life sciences industry. The last thing you need is to hunt down fragmented spend data when you’re under pressure to deliver. 

That is why managing direct spend inside your ERP is not just efficient, it is foundational. With the right setup, your teams gain the visibility and control they need to operate with clarity and confidence. 

Here are five key reasons to manage direct spend in NetSuite and how it positions life sciences companies for commercial success. 

1. Centralized Direct Spend Means Smarter Planning 

Stop guessing and start clearly forecasting by managing direct spending such as raw materials, reagents, active pharmaceutical ingredients, packaging, and clinical supplies inside NetSuite. You’re giving your teams access to real-time data that fuels more accurate demand planning. You can: 

• Use historical data and supplier lead times to project what you actually need 
• Adjust quickly when timelines shift 
• Prevent costly surprises like stockouts or overbuying during critical production runs 

Main takeaway: Instead of bouncing between spreadsheets or disconnected systems, everything lives in one place. You’re making decisions based on facts, not hunches. This matters even more when you’re managing GMP-compliant supply chains. 

2. More Visibility Means Better Supplier Relationships 

Tired of late shipments or inconsistent quality? NetSuite keeps tabs on all of it by letting you track more than just vendor names. It allows you to measure how well each supplier performs across: 

• On-time delivery 
• Quality and consistency 
• Purchase cost variances 

All of this adds up to better vendor conversations and smarter procurement decisions. It also improves your vendor lead time assumptions, which keeps production schedules grounded in reality. 

Supplier performance does not just impact costs in a regulated life sciences environment. It directly affects your ability to deliver consistent product batches and pass inspections. 

3. Compliance Isn’t Optional, but it Doesn’t Have to Be a Chore 

No one wants to scramble during an audit, especially when critical documentation including lot numbers, batch records, and supplier certifications is on the line. Managing direct spend inside NetSuite means you get: 

• Immediate access to traceability records 
• Centralized cGMP documentation 
• Consistency across all your audits 

NetSuite’s end-to-end traceability allows you to track the flow of components from purchase order to finished product. This is essential for companies operating under FDA, EMA, or other global regulatory oversight. 

If you’re scaling up, this becomes even more critical. Systems functioning well during R&D frequently struggle to keep pace with the volume and oversight required at the commercial stage. NetSuite keeps everything centralized, traceable, and audit-ready. 

4. Real-Time Cost Control You Can Actually Work With 

Better visibility means fewer budget surprises. Centralizing direct spend in NetSuite allows finance and procurement teams to access: 

• Budget versus actual cost variances 
• Real-time procurement spend 
• Purchase price trends over time 

That insight is not just for reporting. It supports better purchasing strategies and stronger vendor negotiations. In life sciences, this level of control also supports pricing transparency, which is critical for audits and for working with contract manufacturers. 

You are not flying blind. You are working with a complete and connected view of your spend. 

5. When It Makes Sense to Use a 3rd Party Tool for Indirect Spend 

Office snacks and lab software fall into a different category. These kinds of purchases are not tied to inventory, production, or demand planning, which means they do not require the same level of ERP integration. 

Tools such as Coupa are valuable for this type of indirect spending, such as contract management, spend analytics and supplier collaboration. Just make sure that direct spend stays inside NetSuite, where it can sync with your inventory, production, and compliance workflows. 

For example, Coupa may work well when ordering office supplies or managing marketing budgets. However, it does not offer the integrated lot tracking, BOM support, or MRP alignment needed to manage commercial-grade inventory or materials controlled under GMP requirements. 

So, What’s the Bottom Line? 

Managing direct spend in NetSuite is not just a technical move. It is a business decision that removes silos, reduces risk, and supports scalability. For BioTech, MedTech, and pharmaceutical companies moving into commercialization, it means fewer gaps, faster decisions, and a lot less scrambling. 

From cleaner audits to stronger supplier relationships and better cost control, it all starts with managing spend where the rest of your operations live. 

Next Step: Is Your Team Set Up for Direct Spend Success? 

If you’re a life sciences company using NetSuite but haven’t centralized direct spend yet, now is the time to take a closer look.  

Want to see how your current setup compares to other commercialization-ready BioTech and MedTech firms? Reach out today, and let’s talk through your workflow and explore where procurement processes, data flows, and supplier management can be streamlined.