SVP, Corporate Communications
Leading Commercial Construction Manufacturer Switches From SAP to 220 Users of NetSuite ERP in Just 86 Days
Total Cost of Ownership Nearly $300,000 Lower Annually With the NetSuite Cloud Solution
SAN MATEO, Calif.—February 4, 2010—NetSuite Inc. (NYSE: N), a leading vendor of cloud computing business management software suites, today announced that RedBuilt LLC, a leading innovator and supplier of engineered wood products for the commercial and multi-family construction industry, has switched from SAP to NetSuite for its ERP financial management needs. RedBuilt is the largest company to date to end its relationship with SAP in favor of NetSuite. The company finalized its ERP planning transition in under three months. RedBuilt's first-year costs with NetSuite, including licensing and professional services are just half of what the company would have paid to stay with SAP. In addition, NetSuite allows RedBuilt to avoid $275,000 in annual salary costs for SAP and database administration, as well as costly ongoing server maintenance charges. For more information about the SAP switch program, please visit www.netsuite.com/switch.
RedBuilt uses NetSuite to manage its corporate office and four production plants, including all accounting, inventory management, sales, marketing and reporting and analysis and payroll activities.
RedBuilt, formerly the Commercial Division of Trus Joist, has used the cloud-based NetSuite CRM solution to manage its sales processes since 2005. When RedBuilt became independent from its corporate parent Weyerhaeuser in August 2009, the new management faced a six-month deadline to adopt its own enterprise systems. The incumbent RedBuilt ERP solution was built on SAP Release 3.14h, but management had long hoped for an opportunity to make a change. The SAP solution had never been a good fit for RedBuilt's industrial client needs, with rigid processes and heavy interdependencies which needlessly complicated every change order or information request.
The dynamic, easy-to-use NetSuite solution had been a proven winner for the customer-facing aspects of the RedBuilt business, so it quickly rose to the top of the accelerated selection process. With just months to identify, implement, and train users on a new solution, RedBuilt wanted a solution with proven sophistication and ready acceptance within the organization. Expanding NetSuite from just the CRM capabilities to the entire enterprise suite proved to be the best option. Better still, NetSuite could be implemented and maintained for one-third the overall annual cost of remaining with a newer SAP package.
"We share the vision NetSuite has that the cloud is the future of information systems, particularly those who don't have endless resources to hire and retain top-tier IT talent," said Kurt Liebich, RedBuilt CEO. "At just a fraction of the cost of keeping SAP, we have a solution that is much more flexible and dynamic."
Working with NetSuite Professional Services, RedBuilt transitioned its entire back office in just 86 days. In addition to eliminating SAP, the incumbent PeopleSoft solution for payroll and expense reporting was also replaced by NetSuite's powerful payroll and expense management modules. NetSuite's flexibility and ease of configuration allowed RedBuilt to tailor the system to fit its processes, making change orders easy to execute and eliminating double-entry and rekeying errors.
RedBuilt modernized its enterprise systems in the blink of an eye, saving hundreds of thousands of dollars compared to the SAP alternative. The lean, efficient, access-anywhere NetSuite solution gives RedBuilt all the agility and freedom it needs to grow as it starts a new corporate chapter.
For more information about NetSuite Inc., please visit www.netsuite.com.
NOTE: NetSuite and the NetSuite logo are registered service-marks of NetSuite Inc.