Management of UOM disparity for intercompany transaction in NetSuite
As kids it was a routine to have soaked nuts and dried fruits. It was loaded with nutrients that gave us immunity. As we grew up, amidst the busy lifestyle, the old routines were slowly forgotten. Back in 2005, one of the leading wholesalers of nuts and dried fruits based in Uttar Pradesh, India seized this opportunity to cater to healthy eaters.
They provide a vast variety of nutritious nuts and dry fruits including roasted almonds, roasted and salted pistachio, raisins, crispy beetroot, spiced okra chips and more.
In the 90s, they were a tiny walnut processing unit that catered to both export and Indian markets in a small but distinct style, vending quality walnuts that met their customers' expectations.
By adopting a technology called ‘bactopure’, they turned into India’s first brand that followed the international standards of hygiene and purity for nuts and dried fruits. They use the latest technology to ensure that their products are completely free from any hazardous bacteria and viruses.
They recorded a 25% growth in revenue for the FY 2022.They are among the biggest exporters of dried fruits and essential nuts in India. They have an effective global network that helps them deliver walnuts, dried fruits, morels and other items across 35 countries. They can import the most delectable nuts and dried fruits in the world at an affordable price for the Indian market.
As one of the leading wholesalers of nuts and dried fruits in India, they must deal with complicated business processes. To streamline their business operations, they brilliantly chose NetSuite ERP.
With the assistance of Jobin & Jismi, they successfully implemented NetSuite as well as identified a few steps which needed customization.
The customer has a peculiar business arrangement. One of the subsidiaries of the group is the manufacturer of nuts and dry fruits and the other subsidiary procures the products from the manufacturer and acts as the retailer.
Since both subsidiaries are functioning on NetSuite, intercompany transactions are taking place. Here lies the actual problem. The unit of measure (UOM) of the company which manufactures the dried fruits and nuts is kilograms and the UOM of the retail subsidiary is pieces.
NetSuite allows intercompany transaction UOM mapping, but we cannot convert. This scenario was actually a pain point for the group as they could not clearly understand the conversion and calculate the product quantity. The sales data mismatch was obvious. They practiced manual conversion using a predefined conversion matrix and it was time consuming, error prone, and tedious. The parent company has to spend many resources and money daily to tackle this problem.
Therefore, our customer challenged us to find a way to create the purchase order in pieces simultaneously when the sales order in kilograms is created. This would help them purchase in pieces and sell in kilograms. Jobin & Jismi customized NetSuite to fulfil this requirement.
What We Suggested
The Jobin & Jismi team gladly embraced this opportunity to support this fabulous business and its ambitious vision. Our team helped them by providing the following services.
A thorough analysis of the requirements and business processes of the customer helped our team to rapidly formulate the solution. Employing a proprietary method our developers customized a form in the purchase order for intercompany transactions. Using this method, we developed two other proprietary solutions in the transaction forms. This facilitated the intercompany transactions in two UOMs, that is, in pieces and in kilograms. Thus, successfully fulfilled the requirement of the client, with real-time accessibility.
The major challenge our team confronted during this customization was that it is impossible to make any changes to the existing system. It was easy for us to implement an entirely new system, but major transactions were happening in the current system. Therefore, it was mandatory to maintain the system without making any changes to it.
The brilliant team of Jobin & Jismi mitigated this risk through creating a demo solution and simulated how it would works. They also gave us their valuable suggestions and specific requirements, so that we can include them in the customization.
Our multiple member team successfully completed the customization in less than a month.
Through our excellent consultation, they enjoyed additional benefits:
• Earlier they required a team of resources to manually convert the UOM of more than 5000 items. Now, with this customization, the conversion is made possible within minutes using a minimum number of resources.
• Gained insight into the profit and loss report availability in NetSuite. In addition, they figured out how to use it effectively in future business processes.
• Grasped the ability to forecast profit and loss in business. Thereby increasing their ROI.
• Before NetSuite, they were using systems including HDPOS, Tally, and Uniware which necessitates extra effort and time. Post NetSuite all the processes including accounting, inventory and financials are facilitated in a single platform.
• Sales orders are simultaneously created with the formation of purchase orders.
• The time and resources spent on all these processes can be saved for other high–priority processes in turn enhancing productivity and sales.
With the enhancement of productivity and sales through the excellent NetSuite customization offered by Jobin & Jismi, they can streamline their operations, and continue their success journey seamlessly.
Over time, they can grow their business further, hit their goals, advancing their noble cause of satisfying the munching desires of the world with nutritious and flavorful nuts and dried fruits.
Looking for the best results like this? Well, Jobin & Jismi serves you better. Connect with us for excellent assistance. We have a decade of experience in implementation, maintenance and customization of NetSuite.