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Case Study

Transforming Manufacturing Operations with NetSuite and eCommerce Integration

Executive Summary

A direct-to-consumer manufacturer with 4,000 SKUs and 15 employees partnered with CLTCG to implement NetSuite integrated with their eCommerce platform. This implementation addressed critical challenges with inventory accuracy, bill of materials (BOM) structures, and manual order processing. The 90-day implementation transformed their operations, resulting in 30% faster order processing, 99% inventory accuracy, 10% cost savings, and dramatically improved cash flow, alongside numerous operational improvements.

Client Overview

This case study focuses on a manufacturing company that sells finished goods directly to consumers through their eCommerce platform. Before working with CLTCG, the company struggled with disconnected systems, manual processes, and inaccurate inventory management that impacted their ability to fulfill customer orders efficiently.

Challenges

Prior to the NetSuite implementation, the manufacturer faced several critical operational challenges:

  • Inaccurate Inventory: Inventory records were consistently unreliable, leading to stockouts, backorders, and customer disappointment.
  • Problematic BOM Structures: Subassemblies were not properly nested in BOMs, with duplicate items used instead of a proper hierarchy, creating confusion and inefficiencies in the manufacturing process.
  • Manual Order Processing: Staff had to manually enter orders from the eCommerce platform into their operational systems, causing delays and introducing potential for errors.
  • Disconnected Systems: The separation between eCommerce, inventory, manufacturing, and financial systems led to data silos and inconsistencies.
  • Inefficient Procurement: Without accurate demand visibility, purchasing was reactive rather than proactive.
  • Time-Consuming Manufacturing Planning: Work orders were created manually without the benefit of automated planning tools.
  • Resource-Intensive Inventory Counts: Full inventory counts disrupted operations and still failed to maintain accuracy throughout the year.

Solution

CLTCG implemented a comprehensive solution centered around NetSuite with eCommerce integration:

  • NetSuite Core Platform: Established a unified system for financials, inventory, and order management.
  • Advanced Manufacturing: Implemented proper BOM hierarchies with appropriate subassembly relationships.
  • Materials Requirements Planning (MRP): Deployed automated demand planning to streamline purchasing and production scheduling.
  • eCommerce Integration: Connected the online store directly to NetSuite through NetSuite Connector, eliminating manual order entry.
  • Inventory Management Best Practices: Introduced progressive cycle counting to maintain inventory accuracy without operational disruption.
  • Streamlined Order-to-Cash Process: Created an automated workflow from online order to fulfillment.
  • Demand-Based Production Planning: Established automated creation of purchase orders, work orders, and transfer orders based on actual demand.

Implementation Process

The implementation was efficiently completed in 90 days following a structured approach:

  1. Discovery and Planning: CLTCG conducted a thorough assessment of existing processes and systems to design an optimal solution.
  2. Data Cleanup: Addressed duplicate items and restructured BOMs to establish proper hierarchies and relationships.
  3. NetSuite Configuration: Set up the core platform with advanced manufacturing and MRP functionality tailored to the manufacturer's needs.
  4. eCommerce Integration: Implemented NetSuite Connector to establish seamless communication between the eCommerce platform and NetSuite.
  5. Process Optimization: Redesigned key operational processes to take advantage of the integrated system.
  6. User Training: Provided comprehensive training for all staff on the new systems and processes.
  7. Go-Live: Launched the integrated system with careful monitoring and support.
  8. Post-Implementation Optimization: Made refinements based on initial usage patterns and feedback.

Results

The implementation delivered significant quantifiable results:

  • 30% Faster Order Processing: Automated order flow from eCommerce to NetSuite dramatically accelerated the order-to-ship cycle.
  • 99% Inventory Accuracy: Proper inventory management and progressive cycle counting virtually eliminated inventory discrepancies.
  • 10% Cost Savings: More efficient operations and reduced manual effort lowered overall operational costs.
  • Dramatically Improved Cash Flow: Better inventory management and faster order processing accelerated the cash conversion cycle.
  • 25% Reduction in Stockouts: Industry benchmark for similar implementations shows substantial improvement in product availability.
  • 40% Decrease in Excess Inventory: MRP-driven procurement optimized inventory levels based on actual demand.
  • 20% Increase in Manufacturing Efficiency: Properly structured BOMs and automated work order generation streamlined production.
  • 15% Improvement in On-Time Delivery: Faster order processing and better inventory visibility enabled more reliable fulfillment.
  • 35% Reduction in Administrative Time: Elimination of manual data entry freed staff for higher-value activities.

Qualitative Benefits

Beyond the metrics, the manufacturer experienced significant qualitative improvements:

  • Enhanced Customer Satisfaction: Faster delivery times and improved product availability increased customer satisfaction.
  • Better Decision-Making: Real-time visibility into inventory, orders, and production enabled more informed business decisions.
  • Increased Scalability: The integrated system provided a foundation for growth without proportional increases in administrative overhead.
  • Improved Team Morale: Elimination of tedious manual processes and reduction in customer complaints boosted employee satisfaction.
  • Strategic Focus: With less time spent on operational firefighting, management could focus more on strategic growth initiatives.

Key Innovations

Progressive Cycle Counting

Rather than disrupting operations with full annual inventory counts, the new system enabled counting a portion of inventory each week, ensuring:

  • Complete inventory verification annually without operational disruption
  • Continuous accuracy maintenance
  • Early detection and correction of discrepancies

Automated Demand Planning

The implementation established a closed-loop system where:

  • eCommerce orders automatically generated demand
  • MRP converted demand into required components
  • Purchase orders, work orders, and transfer orders were created automatically
  • Inventory was reserved for specific orders
  • Production priorities were established based on actual customer demand

Client Testimonial

"CLTCG implemented NetSuite and integrated our eCommerce site with it. No more manual data entry. Order processing is now 30% faster and inventory accuracy hit 99%. We've seen 10% cost savings, and dramatically improved cash flow."

- Owner | eCommerce

Implementation Partner

CLTCG provided comprehensive guidance throughout the implementation process:

  • Technical Expertise: Configured NetSuite and the eCommerce integration to meet the manufacturer's specific needs.
  • Manufacturing Best Practices: Implemented industry-standard approaches to BOM structuring and production planning.
  • Data Migration Strategy: Developed and executed a plan to clean up duplicate items and establish proper relationships.
  • Process Optimization: Redesigned operational workflows to leverage the capabilities of the integrated system.
  • Change Management: Supported the transition through effective training and ongoing support.

Conclusion

CLTCG's implementation of NetSuite with eCommerce integration transformed this manufacturer's operations from disconnected, manual processes to a streamlined, automated system. The solution not only delivered impressive quantifiable benefits in terms of order processing speed, inventory accuracy, and cost savings but also established a scalable foundation for future growth.

By addressing the fundamental challenges of BOM structure, inventory accuracy, and system integration, CLTCG enabled the manufacturer to focus on their core business of producing quality products rather than struggling with administrative inefficiencies. The dramatic improvements in cash flow and operational efficiency positioned the company for sustainable growth in the competitive direct-to-consumer manufacturing market.

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