Philz Coffee Brews Business Success with NetSuite

"NetSuite is a very important tool that helps us work efficiently and effectively, which results in us being able to scale and grow faster." Philz Coffee

Company at a Glance

Location:
San Francisco, CA
Industry:
Retail, Food & Beverage

Solutions:

Advanced Financials
Advanced Inventory
SuiteCommerce
Billing
Light Manufacturing

Customer Success:

  • NetSuite supplies Philz with a scalable platform for end-to-end business process efficiency, covering accounting/finance, inventory and warehousing, order management, procurement and sales, and ecommerce.
  • Philz revenue has soared 400% since implementing NetSuite in May 2010, with rapid growth to 13 coffee shops in the Bay Area and a vision for hundreds in California and beyond.
  • NetSuite's integration and attention to detail aligns with Philz' customer-centric approach to hand-crafted coffee, "one cup at a time."
  • NetSuite helps Philz streamline and grow its wholesale distribution channel to more than 100 buyers, including Whole Foods, Virgin America, LinkedIn, Yelp, Facebook, Google.
  • Leveraging efficiencies gained in the cloud, Philz is disrupting the Bay Area coffee industry and improving its competitive position vs. much larger rivals such as Starbucks and Peet's.
  • Philz uses NetSuite SuiteCommerce for web sales of 30+ custom coffee blends to B2C customers in the U.S. and internationally, with integrated order management for efficient processing and fulfillment.
  • Philz relies on NetSuite to simplify and speed coffee procurement from suppliers that source beans from such nations as Yemen, Ethiopia, Peru, Sumatra, Timor, Kenya, Indonesia and others.
  • NetSuite Inventory Management gives Philz real-time visibility into stock in stores and its 20,000-square-foot Bay Area warehouse, with store managers empowered to reorder as needed.
  • NetSuite manufacturing capabilities support packaging and light assembly of custom coffee blends, with a bill of materials feature used to conceal secret ingredients.
  • Real-time business dashboard gives Philz management on-demand visibility into such key metrics as margin, customer count, average ticket, sales by store, labor costs and more, with drill-down into detail.

Challenges:

  • Entry-level Intuit QuickBooks accounting system lacked scalability and deeper functionality required to support Philz' ambitious growth plans.
  • Philz struggled with time-consuming manual work in tracking and replenishing inventory, reporting on sales and other key metrics, and managing transactions with suppliers and corporate customers.

Solution:

  • In preparation to pursue growth, Philz opted for NetSuite's single, integrated cloud business management solution for superior scalability and flexibility.
  • Selected over SAP and Oracle, NetSuite's cloud architecture enables the company to avoid high IT capital costs and ongoing maintenance typical with the alternative of on-premise software and servers.
  • Enterprise-caliber cloud solution means that Philz will not need to endure a costly and disruptive upgrade several years down the road.