Growing eCommerce business implements NetSuite ERP solution

January 26, 2016
Posted in Intacct
January 26, 2016 TM Group

Growing eCommerce business implements NetSuite ERP solution

An eCommerce business wanted new solutions for fast and accurate shipping.

A small eCommerce company decided to invest in ERP software to keep up with its online growth. The organization had fewer than 50 employees, but offered thousands of electronic products on multiple sales channels. The business hosted its own online store and sold through popular merchant sites like eBay and Amazon. It provided merchandise for individual consumers and sold products wholesale to electronics repair shops.

As the company expanded, its legacy system couldn’t handle the growing number of orders and market fluctuation effects on its product costs. The small business purchased the NetSuite ERP solution. To save time and money, it decided to work with local NetSuite consultant, The TM Group, for a guided implementation process to ensure it would receive optimal ROI and performance.

The company’s issues
The eCommerce business’s legacy system was made up of a few different solutions. It utilized Magento for an eCommerce platform. The employees kept track of financials in QuickBooks and used Excel for a variety of business processes. There was also a separate system for inventory.

The lack of integration between the different systems proved ineffective as the business expanded. The manual processes involved with updating QuickBooks couldn’t keep pace with the number of orders that came in. Data errors were a frequent problem because there wasn’t an easy way to oversee procedures or check records.

The manual processes also cost the company money. The cost of the inventory the company sold constantly shifted. It was very difficult for employees to keep an eye on current market prices and change the pricing structure for each product manually in Excel. The process was slow and led to the company selling many items below current cost.

Implementation after careful consideration
The company needed a new solution but didn’t want to rush into implementation. It was happy with the cloud-deployed performance of its Magento platform and wanted the same offsite infrastructure for its ERP solution. The organization selected the NetSuite ERP system because of its track record for integrated eCommerce performance.

The small business’ stakeholders did a lot of research before making any decisions. The company debated a direct purchase and self-implementation, but after a manager carefully studied past NetSuite user experiences online, the organization realized it would be best to utilize a local partner for the NetSuite implementation process.

Managers needed a local company that could offer numerous visits and hands-on assistance. The company decided to work with The TM Group because of the ERP consultant‘s familiarity with NetSuite and structured implementation plans. The company wanted to be as involved with the implementation as possible. The two organizations created schedules and activities for success based on current business needs and future goals.

The TM Group began by spending a few days of discovery on-site to learn the company’s operations. Early in the implementation process, the employees at the company also took an online NetSuite class to become familiar with the software before the consulting started which reduced the implementation cost and timeframe.

NetSuite provides features for success
After growing familiar with the current systems, TMG helped the eCommerce business integrate its NetSuite to their online sales channels. The company kept its Magento platform and created a streamlined process for collecting data from online interactions into a central back office solution.

The TM Group recommended the implementation of FarApp. This NetSuite add-on integrates the business’s Web store, eBay, and Amazon to NetSuite’s ERP solution. The system automatically responds to online customers. It instantly loads orders and updates inventory numbers.

The company purchased OzLINK for shipping that allows the business to accurately calculate shipping costs and generate labels. The warehouse function allowed data capture devices to hook up to scales and other distribution tools. The system links with FedEx and UPS to automate charges. It was important the new solutions facilitated fast and accurate shipping so the company could satisfy customers who were used to Amazon’s top-notch shipping schedules.

The TM Group also provided the company with a unique pricing solution through some customization by its development group. TMG created an algorithm for the business that would search for common prices online and then match the numbers in the company’s software. The business can adjust prices with the click of a button instead of spending a full day checking and changing several separate records in Excel.

TMG is currently working with this eCommerce company to create specialized dashboards and saved searches for customer service. They are very happy with the ERP implementation and now want to explore NetSuite’s CRM functionality. Their latest goal is to instantly provide employees with full records of support and transactions for each individual consumer who makes contact with the business.

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