KINTO* Expands Overseas Business and Increases Net Sales by 150% with No Increase to Workforce.
KINTO is a kitchenware and interior item company based in Japan who designs, develops and markets its products in Japan since 1972 and expanded globally in Europe, USA, Asia and the Middle East. Before adopting Oracle NetSuite, they had difficulties integrating and managing its global operations with spreadsheets and existing software. By implementing NetSuite’s cloud-based ERP, domestic as well as overseas sales grew significantly without increasing existing workforce.
KINTO used to manage its overseas offices centrally from Japan with two disparate systems. Their sales management, inventory management and store management ran on one self-developed system, while ecommerce, accounting management, payroll management and sales order management ran on another software package, as well as on spreadsheets. With successful NetSuite Cloud ERP system rollout in their Europe office, KINTO’s headquarter decided to integrate the end-to-end operation and financial onto the number 1 Cloud ERP, facilitating strategic management and growth.
NetSuite has enabled us to control our overseas operations from Japan. Now, even if we plan to expand our business further and setup more bases, I am confident that we shall be able to integrate all management operations on NetSuite. I am sure we shall be using it for a long time to come.Ryusuke Koide, Executive Director, KINTO Co., Ltd.
Formula of Drastic Sales Growth from 150%?
Hardly any company today can grow its business by focusing on a single domestic market. Lots of industry data provide evidence of globally conducted businesses growing faster than those oriented mostly in local markets as in the success story of KINTO discussed.
Now that eCommerce has become a revenue-driving channel for early eCommerce adopters, retailers and wholesalers who rushed to market their products and services worldwide after the pandemic outbreak have enjoyed the sales spike. However, the challenge of delivering “perfect order” emerged which may result in adverse customer experience and brand credibility. To resolve the soaring demand online, a company requires a delicate balance of inventory visibility, routing logic, and strategies for dealing with exceptions that can be achieved with a robust end-to-end process on the Cloud ERP system.
After diversifying the markets and channels, additional transactions may create tremendous manual work for staff working on the current system or spreadsheets, or manual workarounds to cope with the new business. Automation benefits every part of end-to-end operation. Automate the business process for going global:
- 7-day x 24-hour order processing with existing manpower
- Manage multiple channels and locations
- Integrate website with the ordering system
- Provide a unified real-time view of its business
- Perform automated merchandising
- Targeted Marketing
- 360-degree view of each customer
Go Single Source of Truth
International expansion is associated with intra-company framework establishment (transactions and tallies between the subsidiaries and divisions) and financial reconciliation, regional revenue recognition compliance and localized financial report generation, foreign exchange management, local product support and service team establishment and management. In addition to these essential capabilities of international business, Oracle NetSuite Cloud ERP system provides multi-subsidiary and multi-currency capabilities for your finance team to accurately prepare all company financial health insights and operational KPIs. Management of global operations are able to manage with full transparency on opportunity and risks in real-time.
At ONE Pacific, we have a team of experienced consultants helping companies to “Go Global, Manage Local” (read our customer stories). International business requires ERP software capabilities that go well beyond just how many languages and currencies the system can support. From business process optimization to automation, from finance, production, operations to supple-chain, Oracle NetSuite’s unified, single source of truth on the cloud provides crystal transparency into every detail of the business efficiency and profitability for management and frontline managers to react by data-driven local decisions.
*Source: https://www.netsuite.com/portal/customer-testimonials/kinto-retail.shtml adopted