Introduction to Multinational Consolidation Challenges
While venturing into international markets is full of great opportunities for growth it also poses operational challenges. A $20M multinational company soon discovered this when the company decided to venture into five Latam countries. Managing multiple currencies, multiple languages and multiple jurisdictions meant that managing staff and financial processes was becoming more complicated. The company required a system that will be capable of handling these complexities of analysis, compliant with US GAAP at the same time and ready to grow along with the company. In comes NetSuite, an effective ERP tool that changed their operations for the better. They were able to consolidate on a real time basis, brought down the costs, and made compliance easy.
Across this blog, we’ll discuss how this company was able to overcome these issues, and how that the implementation of NetSuite was pivotal to their success. If you are in a similar boat as this business is or if your business is struggling with similar issues, you might find this case study helpful in understanding how you might use NetSuite.
The Management of multinational operations: The Osborn and Hunt Framework: The Decision-Making Process and Nine Business Environments
One of the major issues arises from the operation in different countries involved and it is even worse when different currencies, languages and reporting systems are used. In particular, the case of expanding across Latin America is reporting five different methods of financial reporting, four different languages, and also dealing with multiple currencies, all for this $20M company. Due to synergy achieved, the financial data needed to be consolidated in real time and translated into US GAAP standards, which by virtue of more annual mergers and acquisitions became impossible with traditional tools.
The current financial software in the organization could not cater for complications needed for an expanding multinational company. They required a solution that would improve their financial functionality but that met the standards of efficiency and compliance. The objective was to bring commonality in the method of financial reporting by all regions, rationalization of regional operation, and charting out the Opportunities for growth of the business in the future.
The Power of Real-Time Consolidation with NetSuite
The most attractive aspect that sold this company on NetSuite was another key advantage of this solution: real-time consolidation across countries and currencies. While in older software such as QuickBooks, it might be tiring and even cumbersome to consolidate data, it is entirely the opposite case with NetSuite as data consolidation is real-time. This feature was essential for the company and they were able to generate reports on time with necessary US GAAP adjustments without much rigorous effort.
The firm could finally monitor financial results in each of the 5 countries with little incidence of difficulty in synthesizing the data into a single system. Apart from making their financial reports more concise, it offered a better insight into their precise state of financials, which should have improved decision making and prediction.
Business Best Practices when Searching for Ways to Simplify the Operations of a Business
One of the key successes of this company to implement NetSuite was the decision undertaken to adhere to the best industry practices. Instead of attempting to force their old, inefficient ways of doing things into the new system they chose to incorporate NetSuite’s best practices directly. This change also eliminated the major part of the implementation time which they could shave by months while remaining engaged in business growth.
Thus, the concurrent advancement and improvement of their processes matched up to world standards and/ or best practice and ensured that there was no wastage of time due to bad practice. Not only their production, but their overall business performances were enhanced; the company stood ready for the international markets.
NetSuite’s Role in Driving Global Business Growth
Faced with daily operational issues, NetSuite became a major priority not only for streamlining operations but for helping Forklift grow in the long term. By the effective elimination of bottlenecks of the existing organization structure the company was able to invest more efforts into its market development rather than worrying about organizational problems. Independently from where they were located, and as their operations were growing, NetSuite offered the necessary flexibility and scalability to match the development of the company.
It also meant that NetSuite did not have to worry about adding additional software layers if it wanted to move into new markets. Thus, mobility, multiple languages, free or fixed currencies, and compliance with requirements formally or informally prescribed in various states also made ERP an excellent option for companies with global strategies.
Saving Costs and Time with Proven Strategies
The other advantage that comes with implementation of Netsuite: The cost and time factor that is cut by half. Implementing NetSuite according to best practice and using the platform functionality where possible helped the company save time during the implementation process and money on licenses. In particular, by achieving potential savings of between 40% and 70% on NetSuite licensing, the company found itself able to invest more heavily in its growth and innovative capacity while sparing itself needless overhead.
Also, the company has been able to realize the advantage of getting to value faster as the result of its implementation. By avoiding months of customizations and adopting leading practices, it has given them a solid start up and they have been able to start using the exponential effect of the money invested with them soon.
Unlocking Future Success with NetSuite
This case study is a perfect example of shedding light on how the right choice of the ERP system can lead a business, especially a multinational business, into a better direction. This $20M company was able to get out of the woods due to the assistance provided by NetSuite – it operates in different countries with different currencies, languages, and accounting standards. By the use of real-time consolidation, and proper best practices and a sustainable structure NetSuite gave the foundation to the success of the company.
If your business is facing issues, such as outdated systems, complicated financial procedures, or managing international operations, this may save the day for your company. By implementing all the solutions outlined in this article along with best practices and using all the benefits of NetSuite, everybody can optimize your business processes, save money and build a stable future.
Conclusion: Are You Prepared for a Revolutionary Change with NetSuite?
Specifically at Mind-Core, we have assisted clients in different industries to fully exploit the adoption of NetSuite. Thus, both in professional services, and healthcare, manufacturing and if you’re exploring private equity M&As, with NetSuite you have all the utensils necessary to optimize your business processes and foster the growth of your organization.
If you are looking for a complete turnkey solution to your business needs, call us now and schedule a consultation. We will assist you in making the decision regarding whether or not to implement this software in your organization and guide you through the whole course.
