Singapore-Based Multichannel Merchant of Fine Outdoor and Indoor Furnishings Sees a 300% Increase in Profitability
NetSuite Inc. (NYSE: N), the industry’s leading provider of cloud-based financials / ERP and omnichannel commerce software suites, today announced that Teak & Mahogany, a Singapore-based B2C and B2B merchant of fine outdoor and indoor furniture and accessories, has deployed NetSuite to streamline its business operations and gain operational efficiency to support rapid international growth. Teak & Mahogany replaced two separate instances of MYOB and a number of Excel sheets with one single instance of NetSuite. Teak & Mahogany is now using NetSuite to manage its core business processes, including financials, warehouse and inventory management, order management, CRM and multicurrency management for the Euro and the dollars of Australia, the US and Singapore. Since deploying NetSuite, Teak & Mahogany has experienced end-to-end business efficiency and strong growth in sales to hotels, restaurants, bars, condominiums and other commercial buyers, as well as growth in its retail business, resulting in a 300 percent gain in net profitability between 2014 and 2015.
Prior to NetSuite, Teak & Mahogany struggled with two separate instances of MYOB, for accounting and retail, while relying on Excel to manually manage inventory and order fulfillments. The siloed applications resulted in regular miscommunication, manual data errors and poor productivity, while a lack of real-time visibility into key business metrics made it difficult to make informed business decisions. After evaluating a number of alternative solutions, including Microsoft Dynamics NAV (Navision) and SAP, Teak & Mahogany selected NetSuite for its rich functionality and flexibility in a single, integrated and scalable solution, based on a cloud architecture that delivers anywhere, anytime access and minimizes IT resource requirements. PGE Solutions, a 5-Star NetSuite Solution Provider partner headquartered in Manila with a regional hub in Singapore, has helped Teak & Mahogany with implementation and ongoing optimizations, aligning NetSuite to the company’s unique business needs and strategic growth objectives.
Founded in 1996 with a flagship retail store in Singapore, Teak & Mahogany is better positioned with NetSuite to grow its multi-channel business across Southeast Asia and the USA. NetSuite helped to support Teak & Mahogany’s recent introduction of a broader lineup of indoor furniture and accessories, expanding on its traditional outdoor focus to bring its total SKU count above 3,000, including seating ensembles, barbecues, bars, dining sets, lighting and more. NetSuite can help Teak & Mahogany drive sales across its B2B distributor channel, which sells its products in Singapore, Australia and Hawaii through CRM functionality that provides a complete real-time view of customers and prospects, from clubs to condominiums, and automated invoicing that streamlines transactions. Multi-currency conversions in NetSuite also helps the company to seamlessly transact in the Euro with their Danish supplier and in the dollars of Singapore, Australia and the U.S. with their three distributors, with more currencies available as it grows commercial sales across the APAC region. Teak & Mahogany also relies on NetSuite for purchase orders, billing and fulfillment with four retailers in Australia and one in Hawaii that sell Teak & Mahogany merchandise.
“Our goal with NetSuite from the start was to expand the business and there’s no doubt NetSuite has played a big role as we have increased our profitability,” said Philip Jensen, Teak & Mahogany Co-owner and Marketing and Export Manager. “NetSuite gives us outstanding flexibility and fantastic real-time data that shows us how the company is doing at any time. With NetSuite, we have a greater focus on growing the business with efficiency and real-time KPIs. We’re relying more on NetSuite to drive the future of the company rather than people using spreadsheets.”
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Other key benefits that Teak & Mahogany has realized since deploying NetSuite are:
Better order fulfillment. Teak & Mahogany has improved order fulfillment accuracy to 100 percent since deploying NetSuite, compared to error rates in the range of 350 a year with previous Excel-based processes, improving customer satisfaction.
Improved inventory management. NetSuite has helped Teak & Mahogany better manage and replenish inventory, dramatically reducing costly overstock at its 23,000 square feet of multi-floor warehousing space in Singapore.
Continued inventory enhancements. Expanding usage of bin management will improve inventory efficiency and precision across distributed warehousing space, supported by the OzLINK solution from NetSuite partner Oz Development.
Greater productivity with a lean workforce. NetSuite automation has helped Teak & Mahogany to consolidate multiple job roles, and since deploying NetSuite, Teak & Mahogany has trimmed the workforce by five full-time personnel, realizing substantial savings.
According to Zakir Ahmed, Vice President and General Manager, NetSuite Asia: “Teak & Mahogany is one of the growing number of businesses in Asia Pacific turning to NetSuite to help realize efficiencies and support rapid growth. Teak & Mahogany’s impressive gains in profitability are a strong testament to the potential benefits of running a business on a unified cloud-based system.”