To build a next generation platform for growth, Shoebacca executives considered three options: they could continue to develop a custom platform in-house, build upon NetSuite or switch to Acumatica.
“We wanted a fully integrated solution that could handle our e-commerce solution, Magento; a warehouse management system and finance, one that could handle a high degree of customization,” Finney says. “It also needed to scale and be flexible to meet our needs as we kept growing.”
They soon realized NetSuite didn’t offer the functionality they needed, and off-the-shelf solutions would be more cost effective than developing custom software. “One of the big issues with NetSuite was the lack of full integration, and we had an issue with Parent/Child relationships on the SKU level,” says Ryan Schlachter, Shoebacca president.
In addition, “all of the WMS solutions we looked at were batch processed,” Finney adds. “So we had difficulty with the lack of timeliness of getting data into and out of NetSuite, which would mean we couldn’t be operating in real time. NetSuite also lacked the level of customization that Acumatica provides, so we would have had fewer options in the future to customize it to suit the specific needs of our business.”
Operate in real-time, grow affordably
NetSuite, which charges a per-user license, was also expensive. Shoebacca has 40-plus employees, all of whom would use the system going forward. “Our vision for growth was that we could grow rapidly,” Schlachter says. “In the last few years, we’ve achieved significant growth and we see that continuing.”
“Since everyone is a user, we saw that as we continue to grow, and add employees and warehouse users, it would become extraordinarily costly to stay with NetSuite,” Finney said. “We were being charged a full license for users who were not really using the software, just using it in the WMS. We would be paying the same amount as for someone in accounting.”
Acumatica, being more resource-based with unlimited user licensing, was affordable and more attractive. “We saw far more potential with what Acumatica could provide us,” Finney says, adding they went live in early 2014.
Shoebacca operates two entities, the retail business and a wholesale business, and carries some 750,000 SKUs. Each SKU also has a number of other data points associated with it, creating a very large database that needed to be loaded into Acumatica.
“We also have a fairly reasonable volume in our sales, so we have a lot of transactions,” Finney says. “and because the of way do business, we cut some very large deals at times, so we have purchase orders with a large number of products on them.” The company transfers inventory between its retail and wholesale entities and also has to process returns, sales and restocking transactions. In addition, Shoebacca has drop ship deals with more than 75 partners, Schlachter says.