- 26 August 2015 10:14
Gym and Fitness Bulks Up Business Operations with NetSuite OneWorld
Australia's Leading Gym Equipment Supplier Manages Head Office, Warehouse and Eight Subsidiaries with a Single Instance of NetSuite OneWorld
SYDNEY, 26 August 2015 – NetSuite Inc. (NYSE: N), the industry's leading provider of cloud-based financials / ERP and omnichannel commerce software suites, today announced that one of Australia's leading fitness equipment suppliers Gym and Fitness, has deployed NetSuite OneWorld to manage its core retail and wholesale distribution business operations. The company replaced MYOB with a single instance of NetSuite OneWorld to manage critical back-end business processes, including financial consolidation, order management, CRM, warranties and spare parts management across multiple subsidiaries, as well as point-of-sale (POS) in its retail stores. NetSuite OneWorld is now used by Gym & Fitness' head office and warehouse in Queensland, as well as eight subsidiaries across the country, including Australian Fitness Supplies (wholesale distribution and export business), Gym and Fitness Online and six Gym and Fitness retail stores. NetSuite OneWorld also provides multi-currency (AUD and USD) functionality, which supports Gym and Fitness' growing export business through its extensive network of distributors in 11 countries. Since switching to NetSuite in 2012, the company has significantly expanded its operations, resulting in a 100 percent revenue increase.
First established in Queensland in 2002 as a family owned and operated importer and wholesale distributor of fitness equipment for the domestic and personal training markets, Gym and Fitness has since expanded into the retail market to support growing demand for its products. Today, both sides of the business are evenly split in terms of revenue, with more growth starting to come from retail and its export business. Gym and Fitness has grown into one of Australia's largest fitness equipment retailers, with retail operations spanning Sydney, Port Macquarie, Melbourne, Adelaide and the Gold Coast, with more than 100 premium resellers throughout the country, as well as a thriving ecommerce business. Gym and Fitness has a main warehouse on the Gold Coast, in addition to smaller warehouses at each retail store, which are supported by a network of third-party logistics (3PL) providers in Sydney, Melbourne and Perth that are also integrated into NetSuite OneWorld.
Why NetSuite? As Gym and Fitness continued to grow its business in Australia and expand its focus on export sales to other countries, MYOB could no longer support its requirements, particularly the need for multiple concurrent users and locations for inventory and multi-currency trading, with real-time business intelligence and reporting. The company evaluated Xero, Microsoft Dynamics Great Plains (GP) and SAP, before choosing NetSuite OneWorld for its ease of customisation, multi-subsidiary management capability and its flexibility to meet the company's future global needs.
"We had one retail store and 26 users when we provisioned NetSuite to manage the operational side of our business three years ago and we have grown to six retail stores and 93 users today," said Dave Barnes, managing director of Gym and Fitness. "It would have been very difficult to get to where we are today and achieve the success that we've experienced without NetSuite. Our vision is to grow and become Australia's largest specialty retailer and NetSuite can give us the scalability and flexibility to achieve that goal."
NetSuite OneWorld provides Gym and Fitness with key benefits including:
Superior customisation – The flexibility of NetSuite OneWorld enables Gym and Fitness to create custom workflows, fields, scripts and records to suit its unique business requirements. One of its biggest challenges is the flow of product data and information through all aspects of the business, from the initial item setup and purchase orders with suppliers, right through to getting information into its magazines, websites, to the customer and to its staff. NetSuite OneWorld helps to streamline this process.
Multi-subsidiary management – NetSuite OneWorld enables Gym and Fitness to easily manage its eight different subsidiaries by automating transactions between the businesses, eliminating double entry of data and helping to remove the possibility of human error. Consolidated reporting is also helping Gym and Fitness gain real-time visibility across all of its subsidiaries to assess how each one is performing.
Improved accounts payable and receivable processes – By automating more than 150,000 intercompany transactions since switching to NetSuite, including purchase orders, sales orders, item fulfillment, item receipts, billing and invoicing, Gym and Fitness has synchronised accounts receivable and accounts payable. This has created significant savings by avoiding human error and double entry, including about 60 hours per month saved by no longer having to retype sales orders.
Superior order management – NetSuite's order management has given Gym and Fitness a real-time view into what is in stock, on order or on back order at any given time for its 14,000 SKUs. The company's previous MYOB software did not include order management and the order process would often take its warehouse several days, so NetSuite has saved the company a considerable amount of time and orders are now shipped much quicker. NetSuite OneWorld has also helped to eliminate double shipping of orders, saving significant time and expense spent managing and correcting this process.
Productivity gains –Since deploying NetSuite, Gym and Fitness has experienced productivity gains. For example, its wholesale accounts receivable process is now automated and can send reminders to customers on overdue accounts, reducing its overdue aged receivables ledger from over 50 percent to 14.8 percent as a result.
Improved accountability and collaboration – Real-time visibility provided by NetSuite has helped improve staff accountability, training and collaboration. In the event of any human errors, audit trails enable the company to isolate what and when it happened and who was involved, allowing Gym & Fitness to focus on employee education and training, while enacting fail-safe systems. This visibility provided by NetSuite helps the company to grow and improve its sales and customer service standards.
Leveraging NetSuite's partner ecosystem – Gym and Fitness is also taking advantage of SuiteApps built on NetSuite's SuiteCloud platform by SuiteCloud Developer Network (SDN) partners to complement its deployment of NetSuite OneWorld. The company is using Infinet Cloud for payroll and AVT IFS SmartFreight for freight management and both SuiteApps are fully integrated with NetSuite OneWorld.
"Since we deployed NetSuite, time and money that was previously spent on IT servers, problem solving and maintenance can now be directed towards our core business of selling fitness equipment and being more efficient as an organisation," said Mr Barnes.
According to Mark Troselj, vice president and general manager for ANZ at NetSuite: "Traditional on-premise software approaches used by many retailers, wholesalers and distributors create a barrier to growth, by increasing IT costs and decreasing business efficiency and accuracy. By switching to the NetSuite cloud, modern organisations like Gym and Fitness can easily manage multiple subsidiaries, rapidly adapt to market changes and distribute their products across multiple channels, gaining a competitive advantage to drive their business forward."
Today, more than 24,000 companies and subsidiaries depend on NetSuite to run complex, mission-critical business processes globally in the cloud. Since its inception in 1998, NetSuite has established itself as the leading provider of enterprise-ready cloud business management suites of enterprise resource planning (ERP), customer relationship management (CRM), and ecommerce applications for businesses of all sizes. Many FORTUNE 100 companies rely on NetSuite to accelerate innovation and business transformation. NetSuite continues its success in delivering the best cloud business management suites to businesses around the world, enabling them to lower IT costs significantly while increasing productivity, as the global adoption of the cloud accelerates.
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