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UNIFYINGFINANCIALS ANDINVENTORYWhy Distributors are Moving to NetSuitewww.netsuite.com
Unifying Financials and InventoryRead Time: 6 minutesQUICKBOOKS CAN SERVE AS ASTARTER FINANCIAL MANAGEMENTSYSTEM, WITH LIMITSWe have all heard the phrase “cash is king.” It is the mantramost distributors, and most companies for that matter, liveby. It is also why purchasing an application to managemoney is usually the first business software investmentdistributors make.As a starter system, QuickBooks is a logical andeconomical choice. At a high level, QuickBooks providesthe basic functionality any business needs in a financialmanagement system: enabling the management of acompany’s chart of accounts, along with a systematicmethod of managing its relationships with vendors andcustomers through accounts payable and accountsreceivable respectively. Providing this core functionality ata reasonable price point has made QuickBooks the systemnorm throughout the distribution industry.However, as innovation evolves faster than ever,heightened customer expectations and increasedcompetition mean distributors can no longer rely on thebusiness models or business management systems of thepast. The reality is that times have changed. The internethas provided a platform upon which to build entirely newbusiness models. Inefficiencies and wasted time on routinetasks, such as the monthly close, are no longer accepted.Business decisions are now driven by key performancedata, not historical practices or best guesses. Real-time Oracle Terms of Use and Privacy“NetSuite iseverything weneed in M andecommerce.NetSuite’sreliability and ondemand accessto a single systemof truth has beenamazing for ourcompany”BECKER SAFETY AND SUPPLYPage 2
visibility and insight can now be the difference betweenthriving and barely surviving.Though most recognize these changes and the needto innovate to keep pace, distribution companies arereluctant to connect their business systems to that vitalinnovation. Some are daunted by the task of overhaulingexisting systems. Others are convinced they will not beable to find a solution that can meet their needs in anaffordable way, choosing to instead make do. Thosedecisions can turn out even more costly in the long run.Business decisionsare now driven by keyperformance data, nothistorical practices orbest guesses.Here are four signs that QuickBooks might be failing yourdistribution business: It’s too hard to find out w hat’s happening across yourorganization in real-time. Limited visibility into key metrics. Limited functionality won’t keep pace withmodern requirements. Inability to scale as you expand to multiple locations. Oracle Terms of Use and PrivacyPage 3
AN INVENTORY MANAGEMENTADD-ON OR A TEMPORARYBAND-AID?For distributors in start-up mode or for those who,despite their growth or maturation, choose to make dowith QuickBooks, the next technology investment afterfinancials is most often inventory management.An Intuit Gold Level partner boasting thousands ofcustomers, Fishbowl is an inventory management add-onsolution for QuickBooks users. Claiming to provideadvanced inventory capabilities through a seamlessintegration to the QuickBooks system, Fishbowl hasbecome common in the distribution industry. However,Fishbowl users quickly realize that an add-on inventorymanagement solution does not make an ERP system.Here are four signs Fishbowl might be limiting your business: Frequent and time-consuming IT support required forsystem updates and QuickBooks integration. Reporting is limited and not in real-time. Inability to customize the system to your business model. No supply chain forecasting or budgeting capabilities.If your company is struggling with these challenges as aresult of its QuickBooks and Fishbowl systems, it may betime to consider an integrated business management suite. Oracle Terms of Use and PrivacyPage 4
NETSUITE: A SUITE APPROACHNetSuite believes in the power of a unified suite ofapplications that spans the whole of the business, linkingkey business processes together on the same platform.A suite approach allows the whole company to viewoperations as a single version of the truth. Furthermore,predefined roles and dashboards that are orientedaround a user’s day-to-day tasks allow for the mostefficient consumption of information throughout theentire organization.A suite approachallows the wholecompany to viewoperations as a singleversion of the truth.For distributors, having inventory and financial dataon the same platform provides a competitive edgewith the ability to plan effectively, execute predictablywith customers and minimize labor costs and errorsassociated with manual reconciliation.THE BENEFITS OF ACLOUD SOLUTIONIn addition to our suite approach, NetSuite is a true cloudplatform. It is important for distributors to understand thata cloud-based vendor doesn’t just offer software, but alsoa service. This means that NetSuite takes responsibilityfor not only the software it supplies, but the underlyingtechnical infrastructure needed to access the solution. That Oracle Terms of Use and PrivacyPage 5
includes the server hardware and database maintenanceand administration, document storage, technical upgrades,and the ongoing enhancements customers need. Thatis an entirely different way of providing a system thanwhat has been traditionally offered where, for all practicalpurposes, it is the customer’s responsibility to upkeep theirsystems on an infrastructure they must initially purchase,but also maintain.A vendor offering Software-as-a-Service is on the hook forall aspects of that service, which in turn means the vendormust continuously earn the trust of its buyers, backed bymeaningful service level agreements. It doesn’t serve amodern cloud provider’s interests to do anything otherthan assure customer success. That is a win-win inanyone’s book, but again, fundamentally different thanthe old way of acquiring and using software.NetSuite takesresponsibility for notonly the softwareit supplies, but theunderlying technicalinfrastructure neededto access the solution.A well-implemented cloud-based system means thatfinancial activities appear as soon as they are triggered.That, coupled with ‘anywhere-anytime’ access means thatdecision makers can quickly act upon both adverse andfavorable performance indicators. In that sense, decisionmaking becomes an activity where those tasked withexecuting on the company’s goals and strategy are ableto do so with information that is akin to looking throughthe front windshield of a car, rather than constantlyworrying about what is in the rearview mirror.The combination of these demonstrable benefits meansthat a well-executed move to cloud results in a muchbetter and predictable cost of operation than is possiblewith on-premise systems. Oracle Terms of Use and PrivacyPage 6
LEADING DISTRIBUTORS HAVEMADE THE SWITCH TO NETSUITE—WILL YOU?Leading distribution companies are making the movefrom QuickBooks and Fishbowl to NetSuite and areseeing demonstrable benefits as a result.For example, Colorado B2B distributor Becker Safetyand Supply started to grow rapidly amid a boom in the oiland gas industry in the western U.S. With the increaseddemand for gas monitors, tools, absorbents and personalprotective equipment, Becker suffered persistent datamismatches and downtime with its QuickBooks, Fishbowland Infusionsoft CRM systems. Becker needed toupgrade to streamline operations and grow into newmarkets and channels.With NetSuite as a unified, real-time system of recordfor financials, inventory management, order processing,CRM and ecommerce, Becker has gained critical visibility,reliability and on-demand access to data anywhere,any time—eliminating the inefficiencies of standalonesystems, paper-based processes and problematic VPNremote access.Distribution companies that have made the switchfrom QuickBooks and Fishbowl to NetSuite include: Oracle Terms of Use and PrivacyCUSTOMER SUCCESS Becker estimates overallefficiency has soared75 to 85 percent withNetSuite, while painfulhours fixing problems withon-premise software andhardware have ended.Becker can seamlesslymanage drop-ship ordersacross its lineup of 11,000products. Supplier invoiceprocessing that took hoursis now done in 15 minutes. With a robust andscalable cloud platform,Becker is expandinginto construction,manufacturing andmunicipal sectors. With NetSuite, Becker hasgreater agility to withstandvolatility in its core oil andgas market and growthe business.Page 7
www.netsuite.com
financials is most often inventory management. An Intuit Gold Level partner boasting thousands of customers, Fishbowl is an inventory management add-on solution for QuickBooks users. Claiming to provide advanced inventory capabilities through a seamless integration to the QuickBooks system, Fishbowl has become common in the distribution industry.
