After a major transition, RSM positions TruRoots for continued success

NetSuite project transforms key processes with single source of truth for data

Nov 27, 2023
NetSuite Consumer goods

When companies go through a carve-out and become an independent entity, they often face several critical decisions regarding ongoing business operations and tight timelines to implement new tools and strategies. Timeliness and effective execution can mean the difference between the successful launch of the new company or unplanned challenges that can hinder growth opportunities.

TruRoots was a carve-out from The J.M. Smucker Company in late 2022. With that transaction, TruRoots had an expiring Transition Service Agreement, with significant potential expenses if the company remained on Smuckers’ systems beyond that contract.

“They really had a hard deadline they absolutely could not miss without some pretty significant financial implications,” says Madeline Hurt, RSM US LLP supervisor.

In addition, at the time of the carve-out, TruRoots was managing nearly 15 different systems which hindered efficiency, visibility and reporting capabilities. The company sought to become a successful standalone company with an ERP system that serves as a single source of truth versus having many disconnected systems. They also wanted to take the opportunity to streamline processes to match their business.

With all those elements under consideration, TruRoots was set to undergo a significant digital transformation in a relatively short amount of time.

Creating a centralized solution

TruRoots is backed by Nexus Capital, and RSM previously performed successful NetSuite ERP implementation projects with two other carve-outs for the company. Based on that prior success, RSM was selected to implement NetSuite for TruRoots.

The implementation eliminated the need for multiple systems, bringing previously disparate functions under one roof with NetSuite. The platform now sits at the center of the organization, but RSM also implemented select external applications and integrated them into NetSuite. 

Traditionally, TruRoots outsourced much of their order management. With that approach performing well, RSM integrated several solutions into NetSuite for electronic data interchange, trade promotion management and order transmission, as well as for managing cash application and deductions. The RSM team also conducted EDI integrations with many TruRoots customers and the company’s third-party logistics solution.

The RSM team also utilized many native NetSuite applications built directly into the platform to streamline TruRoots operations environment. For example, RSM leveraged NetSuite’s warehouse management system (NetSuite WMS) to optimize TruRoots’ fulfillment operations.

Hurt described how NetSuite WMS was a good fit for TruRoots. “The use of NetSuite WMS, NetSuite’s Manufacturing Mobile (for mobile scanning throughout the manufacturing process) and NetSuite Demand Planning and Material Requirements Planning (for demand and supply planning) brought their key warehouse functions together to enhance operations.”

Prior to the NetSuite implementation, TruRoots had issues with several disparate systems, complex and siloed processes, lack of inventory visibility and an expiring TSA agreement as a part of the carve-out from Smuckers. Now, the company has real-time financials, connected systems, reduced manual data entry and enhanced insight into inventory.

“This whole implementation took nine months, end-to-end, from the time they signed to the time that they went live,” says Hurt. “And considering all the integrations and everything that we were able to do and all the modules we implemented, this was a very successful implementation.”

To highlight the success of the NetSuite implementation, TruRoots was able to ship more on-time in-full inventory than ever before in the first month of go-live.

“Our main goal was to be able to streamline our systems to gather all the information to help us make decisions and that has been accomplished,” says Jacobo Capuano, former TruRoots chief operating officer. “We are running the business in a very smooth way compared to other experiences I've had in the past.”

I think that the best thing that we did is that it wasn’t just you guys and not just us, it was us all together and we made this work with that understanding.
Jacobo Capuano, TruRoots chief operating officer

A foundation for continued success

RSM was able to get TruRoots up and running on NetSuite in a timely manner and the two companies have concentrated on optimizing the platform as needs evolve. The relationship is ongoing, as TruRoots has continued working with RSM’s NetSuite managed application services team.  

For example, TruRoots main efforts now focus on extending NetSuite’s functionality to implement more robust capacity planning and production planning tools, with direct integration into the platform.  

With NetSuite now in place after a significant transformation effort, TruRoots now has full control of their business and a simplified, yet stronger foundation for ongoing growth.

“I think we had a very good team, and the engagement was very strong,” says Capuano. “RSM’s consultants were very professional with a lot of knowledge and even when we had issues or we made mistakes, we all worked together to solve them. I think they actually exceeded expectations, and importantly, there has been almost no disruption to the customers.”