“The new system has dramatically increased our company’s efficiency and allowed us to focus on what we do best—meet the needs of our customers.” —Catherine Helshoj, Vice President, Laguna Tools
Woodworking specialist carves new online markets with cloud ERP.
With the recent economic downturn, woodworking tools specialist Laguna Tools was facing increased competition across both the professional and hobbyist sectors of the woodworking industry. The trouble was that the company’s existing multiple-vendor IT systems were fragmented, undercutting productivity and slowing down product shipments.
Laguna realized it needed to take a fresh IT approach to regain business control and focus more heavily on expanding its online sales. It also wanted to reduce business costs, cut the amount of time before finished goods were shipped, and decrease the use of paper and toner to align with its goal of reducing the company’s environmental impact.
Laguna replaced its cumbersome multi-vendor software systems with NetSuite’s ERP, CRM, and Ecommerce modules. The system now supports 24 users at Laguna, a customer base of 35,000, and more than 120,000 contracts. The company can also track online behavior much more effectively and ensure that all sales leads are properly pursued.
The project supported Laguna’s overall company strategy by offering a cost-effective cloud solution that not only improves online sales effectiveness and visibility, but is also aligned with the company’s environmentally friendly initiatives. It has also helped streamline and optimize supply chain and inventory processes.
Laguna now saves nearly $90,000 annually in IT costs compared with the old system. The average order-to-shipment time has been cut from three days to two. The company can also update its online inventory in just 30 seconds, compared to 30 minutes with the old system, and managers can modify prices instantly to take advantage of sudden market opportunities. System reliability has improved to 100% uptime, and streamlined order processing efficiency has cut labor costs by two employees and reduced the amount of paper waste.
But perhaps more importantly, the new system has helped Laguna create a more cohesive organization, with more efficient communication and streamlined processes that help it compete more effectively.
Says Laguna vice president Catherine Helshoj, “The new system has dramatically increased our company’s efficiency and allowed us to focus on what we do best—meet the needs of our customers.”