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NetSuite Announces New Customer Wins As Manufacturers Continue Strategic Shift To The Cloud

Anisa International, Flogistix, PrimaLoft® and Viridis Energy Report Improved Performance Since Moving to the Cloud

SAN MATEO, Calif., March 19, 2013 /PRNewswire/ -- NetSuite Inc. (NYSE: N), the industry's leading provider of cloud-based financials / ERP software suites, today announced that four leading manufacturers have replaced their legacy, on-premise software with NetSuite to power their key manufacturing and business operations, demonstrating NetSuite's significant momentum in this important vertical. Anisa International, Flogistix, PrimaLoft® and Viridis Energy are gaining the efficiency, visibility and scalability needed for growth without the pain, inefficiency, and expense of on-premise, legacy tools. These companies join the ranks of manufacturers like GoPro, Jawbone, RedBuilt and Speck, who are running their business on one, integrated cloud-based suite. The continued growth of NetSuite's manufacturing customer base is further proof that manufacturers are migrating to the cloud. Customers are voting with their pocketbooks and are validating research by industry firms such as Gartner, who predict that by 2015 nearly half of manufacturers worldwide will be using or piloting Software as a Service (SaaS), up from just 2 percent in 2010.[1]

NetSuite's focus on building and refining manufacturing-specific functionality in the NetSuite Manufacturing Edition, a complete cloud solution for manufacturing resource planning, integrated inventory and dynamic replenishment, warehouse management, financial accounting and costing, customer and partner relationship management, and eCommerce has led to substantial growth in its manufacturing customer base. It includes functionality for routings, standard costing, demand planning and work-in-progress (WIP) accounting, providing core capabilities for production engineering, shop floor and project, multi-site and multi-division operations, lot and serial control, bill of materials and assembly builds, and more. The NetSuite OneWorld global business solution enables manufacturers to manage overseas factories, subsidiaries and contractors and transact business in multiple currencies and languages with local tax compliance automation. NetSuite SuiteCommerce gives manufacturers an eCommerce platform for B2B sales and customer self-service, as well as the ability to build out direct-to-consumer sales channels to expand revenue streams. The SuiteCloud development platform empowers manufacturers to customize the solution to their unique business needs, while SuiteAnalytics provides the power of built-in real-time dashboards, reporting and analysis to drive operational insights.

NetSuite manufacturing customers report that they have gained real-time, actionable visibility into sales, customers, inventory and more that improves their ability to make data-driven business decisions while eliminating the delays and inefficiencies typical in a diverse IT application environment. Liberated from administrative chores and IT maintenance and troubleshooting, manufacturers are channeling resources into product and process innovation and customer service, helping to fuel impressive business growth. Highlights of the NetSuite Manufacturing Edition include:

  • Leaner manufacturing and resource planning. NetSuite supplies real-time visibility across the entire organization, enabling superior manufacturing resource planning, leaner production processes and better supply chain management.
  • Inventory management and order fulfillment. A complete set of inventory management, order management and fulfillment capabilities gives manufacturers real-time visibility into stock and improves customer satisfaction with seamless transactions and rapid delivery.
  • Demand planning. NetSuite helps forecast needs and automate replenishment based on historical data, sales projections, average trends and seasonal fluctuations to ensure the right balance of inventory to meet anticipated demand.
  • Procure-to-pay purchasing. One-click purchase order automation streamlines inventory reports, receiving and warehouse management while self-service vendor centers optimize the procure-to-pay process.
  • Multi-factory, warehouse and subsidiary management. NetSuite enables management of multiple manufacturing and warehouse/distribution facilities as well as multiple domestic or international subsidiaries or legal entities.
  • Financials and accounting. NetSuite provides comprehensive, financial/ERP capabilities that integrate with the back-office, sales and service processes, with real-time monitoring and auditing tools.
  • Ecommerce integration. SuiteCommerce enables manufacturers to build B2B and B2C sales channels and deliver an intuitive and streamlined experience to both customers and partners.
  • Customer relationship management. NetSuite CRM seamlessly integrates with financials and back-office systems to deliver a 360-degree view of the customer, empowering sales team for customer acquisition, retention and upsell.

Anisa International, Flogistix, PrimaLoft® and Viridis Energy are among the manufacturers that have recently made the move to the cloud with NetSuite and away from disparate on-premise tools.

Anisa International (www.anisa.com), an Atlanta-based leading global designer and manufacturer of cosmetic brushes and tools for the cosmetic industry, has experienced a 25 percent improvement in operational efficiency since replacing its entry-level accounting software system. The NetSuite OneWorld global solution gives Anisa multilingual and multi-currency (Mandarin and Chinese renminbi) capabilities important for its wholly-owned manufacturing facility in Tianjin, China, at which up to 600 workers produce millions of cosmetic brushes each year. With NetSuite, Anisa has gained breakthrough visibility into inventory, costs, sales and profitability that helped support 19 percent revenue growth since the solution went live in late 2012. Selected over Microsoft Dynamics GP (Great Plains), SAP and Oracle, NetSuite has helped Anisa accelerate its invoicing processes and cash flow by up to three weeks, while reducing its monthly financial close from two weeks to as little as three days. Phase 2 work to begin this year is expected to tightly synchronize purchase and sales order processes between headquarters and the China subsidiary, enable global financial consolidation, deliver budget vs. actuals reporting and install the NetSuite payroll module. "As a manufacturer, we needed a solution that could handle the full cycle covering manufacturing, inventory and financials, and we didn't want to run our own IT shop," said Gary Heege, Anisa SVP of Finance and IT. "NetSuite is extremely robust and gives us the scalability we need to grow­—it's exactly what we needed."

Flogistix (www.flogistix.com), an Oklahoma City-based equipment manufacturer and service provider that helps oil and natural gas companies optimize well production, selected NetSuite for its zero-maintenance cloud architecture, IT customizability to unique business processes, cost-effective licensing and support, and flexibility in handling Flogistix's manufacturing, leasing and service lines of business. Replacing a Sage system in October 2012, Flogistix chose NetSuite over competing solutions from Oracle (J.D. Edwards) and Sage. With NetSuite, production at the Flogistix Pampa, Texas, manufacturing plant has been streamlined with NetSuite functionality for assembly builds with bills of material (BOM) and work order workflow, with new work-in-progress (WIP) capabilities to be deployed soon. NetSuite scalability can support Flogistix as the company looks to expand its manufacturing production by 50-100 percent and builds its sales, leasing and services business with an expected revenue growth of 50 percent in 2013. The NetSuite Fixed Assets module gives Flogistix new insight and control over its leasable equipment by tracking financial, operational and maintenance not readily possible with previous Excel processes. With NetSuite, Flogistix has reduced the time required to generate an inventory report from three hours to minutes and cut monthly financial close by 25 percent while liberating staff to focus on product innovation and servicing approximately 250 customers. "NetSuite really has the best flexibility of any system we looked at," said Damon Green, Flogistix VP and CFO. "We could grow to become a $500 million company and NetSuite would scale with us. We know we have a solution we can rely on to accommodate our growth."

PrimaLoft® (www.primaloft.com), a manufacturer of high-performance synthetic insulation used in leading outdoor and fashion brands, including Nike, North Face, Adidas, Patagonia and others, as well as home furnishings, work wear and military applications, selected NetSuite as its ERP platform after it was spun off from its parent company, Albany International Corp. Previously running SAP R/3 as an Albany International division, PrimaLoft® considered SAP Business ByDesign and Microsoft Dynamics GP before choosing NetSuite for its superior ease of use, cost and lack of complexity. The Albany, N.Y.-based company went live with a Phase 1 implementation in January and runs NetSuite for order to cash, procurement and financial reporting; a Phase 2 implementation later this year is planned to cover inventory management and CRM. The NetSuite International Edition supports multi-currency invoicing and purchasing in Euros, Canadian dollars and British pounds with global customers and contract manufacturers operating in a drop-ship model, while PrimaLoft® has gained real-time visibility for data-driven business decisions that it lacked with SAP and a previous ERP system, QAD MFG/Pro. "The fact that NetSuite is on the cloud is a huge benefit for us—we don't have to maintain our own IT infrastructure," said PrimaLoft® CFO Tom Seaver. "When we looked at SAP Business ByDesign we didn't feel it was established enough—a level of maturity in the cloud-based SAP didn't seem to be there. We're anticipating significant growth and NetSuite provides a flexible solution that works with us in that growth mode."

Viridis Energy (www.viridisenergy.ca), a fast-growing manufacturer of wood pellets as a green biofuels energy alternative based in Vancouver, British Columbia, selected NetSuite to standardize operations across a distributed environment created in part by acquiring companies in Nova Scotia and Kelowna, British Columbia. In April 2012 Viridis replaced a patchwork of Peachtree, QuickBooks and other systems used across the subsidiaries. The NetSuite OneWorld global business solution has given Viridis Energy executives and managers newfound visibility into financials, sales orders and inventory across its three facilities in Canada and one in Massachusetts. The NetSuite Light Manufacturing Edition helps streamline production and distribution of wood pellets from sawdust and dead trees sold to utilities in the European Union, which mandates a percentage of energy be derived from renewable sources, as well as industrial concerns in South Korea; Viridis also sells to distributors and dealers for residential use in the U.S. and Canada. With NetSuite, Viridis has reduced its monthly close times from more than 20 days to five or less, while saving two FTE positions in order management because NetSuite streamlines orders entered by sales reps. NetSuite's anywhere, anytime web access is a large improvement in headquarters' ability to manage remote locations, which used to require a problematic VPN connection. "We're saving an enormous amount of time with NetSuite dashboards and reporting—it's a huge improvement," said Michele Rebiere, Viridis Energy CFO. "Our projected growth is significant and I don't think it would be possible to manage without a cohesive platform like NetSuite."

Today, more than 16,000 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-class cloud financials/ERP suites for divisions of large enterprises and mid-sized organizations seeking to upgrade their antiquated client/server ERP systems. NetSuite excels at streamlining business operations as demonstrated in a recent Gartner study naming NetSuite as the fastest growing top 10 financial management systems vendor in the world. NetSuite continues its success in delivering the best cloud ERP/financials suites to businesses around the world, enabling them to lower IT costs significantly while increasing productivity, as the global adoption of the cloud is accelerating.

Follow NetSuite's Cloud blog, NetSuite's Facebook page and @NetSuite Twitter handles for real-time updates.

For more information about NetSuite, please visit www.netsuite.com.

NOTE: NetSuite and the NetSuite logo are service marks of NetSuite Inc.

Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements relating to expectations, plans, and prospects including expectations relating to the future growth of the cloud ERP market for the manufacturing industry. These forward-looking statements are based upon the current expectations and beliefs of NetSuite's management as of the date of this release, and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements including, without limitation, the risk of adverse or unpredictable macro-economic conditions. All forward-looking statements in this press release are based on information available to the Company as of the date hereof, and NetSuite disclaims any obligation to update these forward-looking statements.

[1] Gartner, "Market Trends: Cloud Computing and SaaS Adoption in Manufacturing and Natural Resources Worldwide," March 23, 2012.

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SOURCE NetSuite Inc.

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