“If we’d purchased all the different components of NetSuite individually – CRM, accounting, inventory, order and invoice tracking – it would have been a huge cost, NetSuite is an all in one package – it’s really brought a lot to our business. We can now put more effort into the front-end where sales are made, instead of dealing with the process of yesterday’s sales.”
Action Tanks Case Study - NetSuite CRM - NetReturn
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| At a glance | |
| Company: | Action Tanks |
| Location: | Head office in Noosaville QLD, over 25 locations Australia-wide |
| Industry: | Manufacturing and distribution |
| Challenges: |
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| Software switched from: | MYOB |
| Results with NetSuite: |
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The Challenge:
Water shortages are a fact of life in Australia, and in recent years the need for clever responses to our high demand for water has grown. One highly effective solution (and one that local councils are increasingly turning to) is rainwater storage tanks. Indeed, the market for rainwater collection tanks in urban areas is expected to double in the next 12 months, a fact that Randall Crisp, Managing Director of Action Tanks, sees as both challenge and opportunity.
Action Tanks are a manufacturer of polyethylene rainwater tanks, based in Noosaville on Queensland’s Sunshine Coast, but with over 25 offices and agents located across the country. The demand for Action Tanks’ products has seen the company grow by 10 per cent a month since starting business less than three years ago. And that phenomenal growth meant Action Tanks quickly outgrew their initial software solution.
When producing a rainwater tank the company draws on an inventory of between 40 and 60 items for each product and holds over 170 items in their complete inventory.
This complexity was proving too much to handle for Action Tanks’ original software, MYOB Account Edge. By July of this year, Randall was looking for a new solution. “We needed something that could accommodate our rapid growth, as well as keep track of the huge number of items in our inventory and consignment stock.”
What’s more, hardware and software woes were making our life even more difficult. “The problem with our location is that it’s difficult to get access to experienced technicians – as opposed to qualified technicians,” he said. “After one technician managed to delete all the company’s hard drives when reinstalling Windows XP, we decided to switch our network over to Macintosh.” Action Tanks needed a solution that would cut out the price and problem of software and hardware upgrades, while running on any platform – and in any location.
The Solution:
After searching on the internet for several weeks, Randall happened across NetSuite. NetSuite’s advantages were clear. The hosted solution meant software problems were a thing of the past. All upgrades were handled off site, there were no hardware integration issues, and no problem with running NetSuite on a Macintosh network. The Suite can accommodate Action Tanks’ rapid growth: when the company opens a new site, all they need is a wireless laptop with a NetSuite license a new terminal is up and running.
NetSuite now handles all accounting functions and office features, as well as invoicing and order tracking. The company is starting to roll out the CRM feature, giving Action Tanks a much more effective way of selling to new and existing customers. Importantly, says Randall, if they want to add or expand any of NetSuite’s functions, “we already know the interface and don’t have to train staff on new software. There is continuity right through the system.”
“It’s easier for new staff to learn the business, because they only have to train on NetSuite.”
The Results:
While legislation such as the Building Sustainability Index (BASIX) in Sydney and compulsory rainwater tanks in homes in many areas has proven a big opportunity for Action Tanks, the real challenge has come in urban areas. There is a new demand for smaller tanks (with a lower sales value) but the process for making a large and small tank is the same. Economies of scale mean Action Tanks must sell a higher number of smaller tanks to get the same return and this is where NetSuite has given Action Tanks a real boost, said Randall. “We needed to streamline our business processes – NetSuite allows us much higher productivity, by breaking down the paperwork involved in raising and fulfilling an orders.”
What’s more, Action Tanks’ manufacturing, warehousing and office locations are spread across the east coast. To turn a ‘raw’ tank into a saleable product, another 40 to 60 items are added. With NetSuite the company has much better control over its inventory flow, giving Randall a clear overview of the sales pipeline and allowing him to cut down on stockholding. “Because we sell to a range of people, from builders and farmers to pump shops and solar hot water retailers, we need to service our customers efficiently,” he said.
In the coming months, Action Tanks plan to automate their ordering and fulfilment process through NetSuite using the e-commerce module, cutting out a further layer in the sales procedure. This will mean direct order tracking for customers, allowing them to check online to see the estimated delivery time and call Action Tanks directly if there are any problems, instead of tracking back through a sales agent.
Perhaps the biggest result for the company has been in cutting ‘back office’ costs, allowing them to focus on streamlining their business. “If we’d purchased all the different components of NetSuite individually – CRM, accounting, inventory, order and invoice tracking – it would have been a huge cost,” said Randall. “NetSuite is an all in one package – it’s really brought a lot to our business. We can now put more effort into the front-end where sales are made, instead of dealing with the process of yesterday’s sales.”
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