Lionel Goes Full Steam Ahead with NetSuite

Lionel

"The feature-rich self-service reporting capabilities of NetSuite have empowered our business users to do their own analysis, and that’s improved our efficiency and effectiveness." Lionel

Company at a Glance

Location:
Concord, N.C.
Industry:
Retail/Distribution
Applications Replaced:
IBM AS/400 ERP

Solutions

NetSuite OneWorld
Oz Development OzLINK
SPS Commerce

Customer Success:

  • Lionel is positioned for growth with a single cloud ERP solution across its 114-year-old hobby train business and its Lionel Racing subsidiary, selling NASCAR die-cast cars and other racing collectibles.
  • NetSuite OneWorld enables fast, seamless financial consolidation and reporting between the Lionel parent and NASCAR subsidiary.
  • Upgrading from a legacy IBM AS/400, financial and operational managers no longer need to rely on IT for data access and business reporting.
  • Speed and visibility into critical information are dramatically improved for better business decisions and performance.
  • Lionel is avoiding the cost of five full-time IT personnel that were needed with its previous legacy AS/400 system.
  • NetSuite's lean and integrated cloud platform aligns with Lionel’s strategy to evolve its model railroad and racing businesses in the digital age.
  • Orders increased 118% in direct-to-consumer model railroad sales between 2012–13 while inventory costs were reduced.
  • With new scalability, Lionel can readily handle spikes in model railroad orders during the holiday season, and spikes in NASCAR collectibles orders as the racing season gets under way in February.
  • NetSuite flexibility has helped Lionel expand into the eBay channel, integrating with the ChannelAdvisor marketplace solution to process eBay orders.
  • Company has cut costs by ending relationship with third-party logistics (3PL) provider, leveraging new cloud capabilities for in-house distribution and fulfillment.

Challenges:

  • Legacy green-screen IBM AS/400 ERP systems at the Lionel parent forced business users to rely on IT for basic business information.
  • Delays and poor visibility into sales, customer, inventory and supplier data undermined business efficiency and growth potential.
  • Lionel incurred unnecessary costs in outsourcing its distribution and fulfillment functions to a third-party logistics provider.

Solution:

  • The NASCAR collectibles subsidiary implemented NetSuite ERP in 2010, shortly after Lionel LLC purchased the business from Motorsports Authentics.
  • Before the acquisition, the NASCAR subsidiary was running a green-screen IBM AS/400 ERP system; coincidentally, the Lionel parent also ran an AS/400 system.
  • With the NASCAR subsidiary realizing excellent results with NetSuite, the full Lionel enterprise implemented NetSuite as its ERP system of record.
  • OzLINK order and shipping solution from NetSuite partner Oz Development speeds consumer and wholesale fulfillment from the North Carolina warehouse.
  • EDI solution from SPS Commerce streamlines transactions with big box retailers like Sears, Toys"R"Us and Target.