China subsidiary of world's largest vitamin supplement company, NBTY, uses NetSuite OneWorld to support 100% a year growth while synching with Lawson ERP at U.S. headquarters in two-tier model for global consolidation and visibility.

"Our business is growing very fast at about 100% a year, so the challenge was how we could manage growth without investing a lot of money in IT systems and people to run them. NetSuite is a very good system that beats everything we compared it to and it makes the globe small. Our parent company is in New York and we're in China, and they get instant, real-time visibility into our performance."

—Hunter Xia, Managing Director, NBTY (China) Trading Company Ltd.



Results:

  • Two-tier ERP deployment provides U.S. corporate parent with real-time web-based visibility into subsidiary performance, with monthly roll-up into Lawson ERP application at HQ
  • Flexible business management platform helps support rapid growth in expanding China market for vitamins and nutritional supplements with required local controls
  • Avoids cost of at least three full-time employees at the subsidiary level for accounting and IT that would be required to run a competing system
  • Streamlines inventory management, warehousing and distribution for millions of dollars of imported products in over 200 SKUs.

Challenges:

  • Sage Accpac ERP system used at the subsidiary level was too time-consuming and inflexible to support explosive growth, from small startup-like operation to multimillion-dollar subsidiary in just four years
  • Long data entry times of up to 1 minute with hosted Sage system were "killing the business"; on-premise ERP expansion of Lawson ERP system used at headquarters would require extensive networking and localization
  • Sage financial reporting was slow and cumbersome with custom reports requiring engagement with Sage consultants.

Solution:

  • Replaced Sage Accpac with NetSuite OneWorld for China subsidiary across four offices for ERP/financials, supply chain, sales management, and wholesale/distribution management
  • Utilize NetSuite OneWorld multilingual capabilities and built-in support for China-specific currency and value-added taxation (VAT)
  • Empower employees and 300 China distributors with self-service access and enables real-time management of inventory stock levels for subsidiary operations.







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