Manufacturer overcomes financial and functional challenges with NetSuite
CASE STUDY |
Icelandic Design was founded in 1981 by Gerdur Kristjansdottir with her then retired mother. They were looking to make the family tradition of knitting the finest wool sweaters into a business. Now, after more than 30 years in business, Gerdur employs women knitters all around the world, with most working from their homes so that they can stay close to their families. Demonstrating the family focus of the company, Gerdur provides scholarships and educational opportunities for employees’ children.
Icelandic was operating with a Microsoft Dynamics® NAV enterprise resource planning (ERP) system. It was several versions behind the current release, with a highly customized platform that included multiple third-party products to expand the functionality of the system. As a result, the cost to upgrade to the latest release of Dynamics NAV was very expensive, so they began to look for other alternatives.
RSM implemented a 10-user version of NetSuite™ with an initial three-month roll-out, including some additional advanced functionality for customer relationship management (CRM), matrix inventory, multicurrency and e-commerce. Ultimately, Icelandic selected NetSuite because of its fully integrated solution and lower purchase and implementation costs than the proposed upgrade to Dynamics NAV.
In addition to cost savings, Icelandic has enjoyed several additional benefits from its NetSuite implementation. The platform and its functionality have been a better fit for the company and its growth goals.
Other benefits of RSM’s NetSuite implementation for Icelandic include:
Limited upgrades – With the number of customization and third-party add-ons in Icelandic’s legacy system, the availability of upgrades to the accounting system were limited. NetSuite’s biannual upgrades ensure that the company stays current on the most-recent platform.
Matrix inventory – In the past, functionality was added into the company’s legacy system through a third-party add-on. With NetSuite, matrix inventory is part of the core functionality so inventory can be managed by variables such as color and size.
Ease of use – Financials and financial reporting were challenges in Dynamics NAV. NetSuite offers easier to use accounting features and straightforward financial reporting.
E-commerce – Five percent of Icelandic’s merchandise is sold via their website. NetSuite’s integrated e-commerce functionality eliminates any re-keying of data and allows for seamless operation between the different retail channels—online, retail and B2B distribution.
Multilocation and currency – With operations in both Canada and the United States, NetSuite allows Icelandic to handle multiple currencies and manage locations with seamless transactions and reporting. As the company expands, additional currency and location integration is not a concern with the flexible NetSuite platform.