NetSuite for Ecommerce

Europart Case Study

"We have a better system than we had before, without spending more money than we were spending before, plus this system touches every part of the business.” — Eddie Hutchinson, Financial Director H. T. Maddocks Ltd

At A Glance:

• Company: H. T. Maddocks Ltd, trading as Europart
• Location: Abercynon, Wales; Dorset, England (UK)
• Industry: Wholesale/Distribution; Electronic commerce
• Challenges: - Integrate front and back-end operations - Provide a CRM system - Minimise the need for upgrades, interfaces, and maintenance
• Software switched from: Microsoft Dynamics/Great Plains, Actinic
• Other software considered: Sage
• Results with NetSuite: - Internet sales up to 10% of sales - Month-end figures delivered in real-time - Automatic updating of website when catalogue is updated with inventory and stock levels
• NetSuite Business Partner: BlueBridge One www.bluebridgeone.co.uk

The Results:

Since installing NetSuite, H. T. Maddocks Ltd-trading as Europart — has seen Internet sales rise to 10 percent of sales. Real-time visibility of finances means that month-end figures are out precisely at each month's end. And there is now total integration between the front and back-end operations — including inventory, warehousing, financing, and the website. There are no separate modules. It's all one system, with no need for middleware or complicated interfaces.

"We have a better system than we had before, without spending more money than we were spending before, plus this system touches every part of the business," says financial director Eddie Hutchinson.

The Challenges:

Europart has supplied domestic appliance white goods and spare parts since the 1970s. For a number of years it used Great Plains (now Microsoft Dynamics) for its enterprise system, and Actinic as its webstore database, with no interface between the two products. "We had to rekey information between the two," admits Hutchinson. "Plus, our CRM system was virtually non-existent."

Europart was facing the need to upgrade Great Plains, but the upgrade was going to be expensive and required a lot of downtime. "We recognised the opportunity for a new, integrated product, but the cost and downtime could scarcely be more disruptive than the prospective upgrade," says Hutchinson.

Now that they were in the market for an electronic trading system and a CRM product, Europart briefly considered Sage, but didn't like the fact that it used third parties to handle electronic trading.

"The real-time aspect of the financials is most impressive. I can get the monthly figures out at just as each month closes. Before, there was always a few weeks' to a month's delay. As Finance Director, that's probably my favourite thing about NetSuite.” — Eddie Hutchinson Financial Director H. T. Maddocks Ltd

In the event — thanks to a timely mailshot from NetSuite Solution Provider BlueBridge One, who managed the entire project — Europart found NetSuite: "The software suites we looked at offered various bolt-ons, but NetSuite incorporated all our requirements in a single package. As a hosted product, it gets upgraded as you go along, so we wouldn't have to face the upgrade issue again. Plus NetSuite set out its stall with the fact that you can electronically trade on the Web."

He adds, "There isn't much in the small-to-medium-sized business market that compares, unless you want to pay for a very expensive bespoke system. NetSuite is an off-the-shelf product and the customisations we required were all very easy to effect — at least, the consultant from BlueBridge One made it look very easy!"

The Solution:

The implementation project went smoothly. "This is the fifth system we've had over the years, and it was the easiest to get going live," comments Hutchinson. "We began work late in February 2006 and went live on 1 June. It's what we were told, and it's exactly what happened. We put it down to good planning by BlueBridge One, and a great product from NetSuite!"

By the end of the year, Internet sales were up to 10 percent of sales.

Hutchinson also notes a marked improvement in the company's CRM. "Some of our customers run their business on the computer, and they really appreciate being able to transact with us over the Internet. A few still prefer to pick up the telephone and talk, but their numbers are decreasing."

He finds the real-time aspect of the financials impressive. "I can get the monthly figures out just as each month closes. Before, there was always a few weeks' delay. As Finance Director, that's probably my favourite thing about NetSuite. It also makes the decision-making and forecasting processes more effective."

Overall, Hutchinson sees the greatest benefit to Europart's business on the sales and marketing side, and the total integration of the system. "Items are listed, photographed and uploaded onto the website within seconds," explains Hutchinson. "The website is linked directly to the item catalogue, so as the catalogue is updated with inventory and stock levels, so is the website. With around 10,000 inventory items and 100 sales orders a day, stock replenishment used to be a real headache for us, but is now working like a dream."

For more information regarding NetSuite please visit www.netsuite.co.uk