The pace of change continues to accelerate at an unprecedented rate for financial services companies
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Here’s what thought leaders at the Modern Supply Chain Experience conference in San Jose, Calif., had to say about the challenges facing today’s supply chain leaders and their predictions for the future:
Change is inevitable, especially in an age when technology is constantly advancing and businesses are innovating and iterating day after day. With this in mind, as hard as investing in your supply chain may seem, can your business really afford to stay the same?
Your Target Market is Online, and You Should be Too
The modern consumer across all parts of the supply chain turns to the internet as the ultimate source of knowledge for purchase decisions - thus, a strong online presence is crucial for continued business success, whether in the world of B2B or B2C commerce. Ecommerce continues to be a key topic and distributors need to be ahead of it if they want to remain relevant and fresh in the face of major industry changes.
Competition is Everywhere and They are Leaner, Meaner and More Tech-savvy Than Ever
In today’s distribution landscape, it is only getting harder to differentiate. With the ever growing number of competitors, how do distributors position themselves as unique and stay a step ahead? What trends are affecting our industry? Assessing and reassessing these questions on a regular basis is absolutely essential for continued success in the constantly evolving world of distribution.
Business Models are Rapidly Changing
Distributors are exploring new ways of going to market. Between the internet’s pervasiveness among modern consumers and the constant flood of technological advances in the business world, companies have to fundamentally change the way they operate in order to hold up against their competitors.
Investing in Tech is not Just for the Amazons of the World
In order to remain competitive, distributors need to continue upgrading their work environments and stay on the cutting edge of technology. Gone are the days of paper pushing and manual processes – tablets, scanners, and cloud systems are changing the game and making the modern distributor warehouse sleeker, cleaner, and more efficient.
Employee Productivity is Critical for Success
Tech upgrades - although very important - are useless without the employees to act on the efficiencies they bring. Employee productivity for the modern distributor is key to success long term; much of that productivity can be facilitated with new technologies. Warehouse automation, CRM, ecommerce, pricing and analytics are just some of the updates modern distributors implement to streamline their processes while increasing employee productivity to improve the output of their operations.
What does it take to remain competitive in the constantly changing world of manufacturing? There may not be a single answer, but one thing is certain: without the right tools and systems in place, it’s nearly impossible for companies to keep pace. For this reason, leading innovators in manufacturing are turning to NetSuite’s cloud platform as the solution of choice to run their entire manufacturing business. They looked forward and asked the question:
Download this ebook to learn more about the trends facing modern manufacturers and the technologies available to equip businesses for long term success.
Discover how NetSuite addresses the needs of modern manufacturers head on including…
Manufacturing-specific capabilities. With more than 30 years of experience in ERP, NetSuite has developed industry-specific functionality to address these exact manufacturing-specific needs.
Sturdy, reliable platform. NetSuite has consistently focused on enhancing the performance of the platform, for startups and large enterprises alike.
Global functionality. NetSuite provides a global solution that moves at the speed of business and provides small and large companies alike with the functionality needed for success.
Focus on customer experience. Customers expect consistent experiences regardless of how they engage—whether via the web, call center, mobile device or otherwise—and NetSuite’s SuiteCommerce platform provides just that.
“In my 12 years in the finance world, NetSuite is the most end-to-end solution I’ve seen.”
– Tim Ward, CIO, CraftMark Bakery
On the flip side of the record pace of mergers and acquisitions over the last couple of years is the rapid growth in companies divesting of product lines. Seeking to drive greater focus on core products, meet financing needs, and keep pace with market changes, companies are pursing divestitures at a record pace– with more than half of those surveyed in Deloitte’s M & A Trends Report, 2016 Edition reporting that they expected their companies to divest business lines over the next 12 months. That’s up from 39 percent last year.
For the company being divested, breaking up with its parent can often break it. The stressful dance of retaining talent, making difficult staffing decisions and managing messaging is also accompanied with the need to build an entire new IT infrastructure from the ground up. Many companies bow at the overwhelming task of standing up new systems when they’ve relied on those of their previous parent for decades. Making fast decisions on an appropriate technology foundation will not only support the new business, but empower it to evolve at the pace necessary to compete in the future, can separate the winners from the losers.
It was in this spot that Quicken Inc. found itself in March of 2016, when Intuit announced it would divest of the 30-year-old, flagship personal finance software to sharpen its focus on small business.
But instead of meeting the situation with fear, Quicken viewed it as an opportunity filled with potential. CEO Eric Dunn told ComputerWorld that he was not only certain the product would endure, but that in a couple of years from now, users would say, “this is the best Quicken ever.”
A big part of solidifying that future was building the new company on a foundation that was agile and scalable enough to move at the pace his industry demanded. Quicken had only six months to move off the on-premise legacy software that had supported its finance and accounting processes for decades, and onto something that would help it grow and evolve its product to support its users’ needs for decades more.
Quicken’s new controller – Gary Hornbeek -- had 25 years of experience with financials and ERP systems, leveraging eight different ones during his career that ran the gamut from QuickBooks Online to SAP. There was little doubt in his mind as to what would be the best fit for the new leaner, more agile Quicken – Oracle NetSuite.
“It’s not too complex, it’s not too simple. It’s flexible and powerful, but still easy to use,” Hornbeek said. “It’s just right.”
The company was sold on NetSuite’s fast implementation timeline, robust functionality and integration, ease of use and scalability. With NetSuite OneWorld, it could seamlessly support a lean accounting and finance operation of 10 running two offices in the United States and Bangalore.
That balance of “not too simple, not too complex,” was immediately apparent to users. Accounting could complete complex tasks, such as consolidating financials from multiple entities and locations, and recognizing revenue from online and physical product streams, yet could accomplish transactions with a few clicks in a single screen, something that was previously impossible because of the lack of integration in its former systems. Simple integrations with third-party applications already in use – like Bill.com -- expedited adoption.
“We’ve been very happy,” Hornbeek said. “It saves us time, and because of the power of the system, we’re able to operate with a much smaller team than we might otherwise be able to.”
Hornbeek plans to leverage NetSuite dashboards and reporting to lend the CEO rich access into metrics defining the health of the company in real-time – positioning NetSuite as his first stop in the morning, even before he checks his email, and his go-to for insight-driven business decisions.
In turn, Quicken’s plans to re-architect its own product to run in the cloud are bolstered by Oracle NetSuite’s agile cloud platform. Quicken can easily turn on functionality to accommodate complex requirements for revenue recognition as it moves to subscription-based licensing.
“As our business evolves, we’re capable of handling the changes,” Hornbeek said.
Learn more about NetSuite for Software companies.
Reposted from NetSuite: Kimberly Odom, Director of WW Customer Marketing, NetSuite
Are quickbooks and manual processes holding back your growth?
Your company is growing fast, and so is business complexity. You know that continued reliance on QuickBooks and spreadsheets means inefficient manual processes, high operational costs and risk of error that limit your potential and hold back your growth. Is it time to upgrade?
Download this ebook to learn how cloud financials can:Eliminate manual data transfers across applications to speed processes.
“We wanted to invest in streamlining operations and growing our business...By replacing QuickBooks and other peripheral systems with NetSuite’s cloud ERP applications, we increased our transaction volume 5x without adding staff, and reduced our monthly close cycle from twenty days to five days.”
Creating and managing vendors, purchase orders, receipts and all other relevant transactions is one of the simplest, yet comprehensive aspects of our system. Before establishing a purchase contract, NetSuite allows purchasing buyers to email Request for Quotes (RFQs) to vendors and suppliers to get quoted prices on particular items detailing: open bid period, expected order and receive dates, tiered pricing and volume discount. It also notes the postposed incoterms, vendor instructions and payment terms.
With NetSuite, RFQs are sent directly to vendors via emails, allowing targeted vendors to respond with their bid prices via NetSuite vendor center. This allows your vendors extended capabilities to get involved independently without the buyer to enter bid prices from different vendors.
Buyers are able to customize the buying options with quoted rates, volume and/or overall order discount. Once vendors respond to the RFQs, our Advanced Procurement module enables your purchasing department to itemize and analyze extra details before a purchase contract is signed to the awarded vendors.
When the RFQs are awarded to the vendors, you also have the capability to automate the purchasing process in NetSuite. Once purchase contracts are signed and prices are confirmed, subsequent procurement processes are straightforward.
If you would like to learn more about this feature, please do not hesitate to contact our team at NXTurn. Our certified consultants can work with you to customize a NetSuite implementation that meets your individual business requirements.
NetSuite’s development of Advanced Revenue Management was spurred by a new FASB accounting standard. ASC 606 was developed to streamline controls in revenue management across all industry types (transaction exclusions are covered in publication ASC 606-10). Previously, ASC 605/SAB 104 allowed for process protocols to be industry specific.
In ASC 606 there are a series of questions a business must ask in order to determine the appropriate course of action for a revenue arrangement related to a contract or obligation.
Under ASC 606 a company recognizes revenue to reflect the transfer of goods or services to it’s customers for an amount in direct correlation to the obligation of the expectations for the same goods or services.
These are the steps that follow this protocol:
Well, namely, it removes ambiguity in revenue requirements and provides a systematic approach for handling a multitude of revenue issues. It also simplifies the number of requirements that companies must follow in preparing financial statements/disclosures.
NetSuite’s Advanced Revenue Management solutions meets the requirements set forth in the ASC 606 protocol. The solution was developed not only to meet the new protocol but to also provide a highly configurable and layered approach to how revenue contracts are managed with a focus on ease of use for accounting professionals. It provides multi-element arrangement functionality and allows revenue recognition based on specific/flexible criteria.
One key report is the Deferred Revenue Waterfall Report, which is used to reconcile deferred revenue account balances and display forecasted revenue. It’s incredibly useful. Additionally NetSuite has created tools within the module to assist in deferred revenue FX reclassifications and other reclassifications that were previously handled using manual processes or scripted enhancements.
*GROUPSUM is a function used to accommodate percentage-based fair value calculations. GROUP(n) refers to the revenue allocation group and the expression(expr) is another field or formula. GROUPSUM(n, expr) These tools coupled with a multitude of other features and settings allow for nearly unlimited flexibility, ensuring the correct revenue is recognized across a variety of tested uses cases. Use case example. Your company sells hardware and software but you also provide support against the hardware/software being sold. You may determine that the fair value of the support item is 10% of the sales price of the hardware and software being sold. Both your hardware and software items are part of the same revenue allocation group. Using new functionality available in Advanced Revenue Management you are able to do a few things not previously available; tie items to revenue allocation groups, establish fair value, create a fair value formula and also allocate the GROUPSUM function to the formula. Example infers that Calculated Fair Value is same as sales amounts for Hardware and Software. Revenue Plans are created for items in the following manner: Hardware (upon Fulfillment), Software (upon Fulfillment) and Support (Billing)
|Item||Rev Allocation Group (RAG)||Sales Amount||Calculated Fair Value Amount||Revenue Amount|
Our use case determines the Support is 10% of the RAG total = 400
Total of all item Sales Amounts = 4300
Percent of item allocation (example Hardware) = 3000/4300 = .69767442
Revenue Amount (example Hardware) = .69767442*3000=2093.02
Total Sales – Revenue amounts from Item Group XX = 1974.43
This complex example demonstrates Advanced Revenue Managements understanding of the nature in which revenue amounts are allocated to each element in a revenue arrangement.
Download our white paper for a look at why forward-thinking ad agencies upgrade from QuickBooks. Discover the telltale signs of how QuickBooks is failing your business and restricting your growth and learn more about the agencies using NetSuite to optimize their performance and scale business into new markets.
The days of maintaining workforces comprised predominantly of full-time employees are over. On-demand workers give businesses greater flexibility, agility and cost efficiencies.
For the media and publishing sector that is undergoing dramatic disruption due to demographic and technological changes, the need for on-demand workers is much broader than just editorial or creative staff—including technologists, data scientists and others.
Download a copy of our white paper, "Tapping the On-Demand Workforce: Digital Strategies for Media and Publishing Companies," for a list of key ways media and publishing companies can leverage on-demand workers for positive business outcomes.
Financial services firms are intently focused on the challenges of competing in a fast-changing and dynamic marketplace. Fierce competition, regulatory reform and evolving customer needs are the norm. To survive and thrive in this fast-paced environment, growing financial services companies are turning to the cloud to enable speed, agility and operational efficiencies.
Download this Research study to explore the key challenges, trends and opportunities in financial management. This report summarizes a survey of Executives in the Financial Services industry and provides insights into: