Get Convenient Subscription Billing and Management with NetSuite ERP

Get Convenient Subscription Billing and Management with NetSuite ERP

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It seems as if nowadays subscription business models are everywhere, they have evolved from paid subscriptions of products such as magazines or services such as milk delivery. Now in our present technology-driven society, we are seeing more and more businesses adopting this model, more specifically in industries such as entertainment and subscription box services.

Before the digital transformation that we are currently experiencing, the biggest challenge that businesses were experiencing was the lack of resources to support collecting recurring payments from large quantities of customers. With ERP systems such as NetSuite, it is now possible to set up and process recurring payments without the significant investment of a labour force to collect payments. Another reason for the adoption of subscription models is the ability to have analytic insights to fine-tune models over time. Modern developments in infrastructure make subscription models easily attainable, but feasibility is only one of the reasons why there is such appeal to this business model.

About the Client

Our client who operates in the industrial recycling business is based in Canada and services all through North America as well as globally. This business provides recycling solutions for almost every type of industrial project and also gives its customers access to direct markets in order to maximize the value of their scraps and waste materials. Our client’s services include evaluation of material and pick up. Their warehouse allows the processing of recycled goods at the highest standards.

With worldwide operations and specializing in industrial recycling, our client has taken on challenges through innovative recovery techniques which commit to their goal of excellence in customer service. Some of these challenges appeared when more services and various types of recycled products came in demand. The need for a system that could be further customized to cater to new processes appeared.

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How Subscription Business Models Work

Subscription business models go way back. They were first introduced by newspaper and books publishers. Now with everything going digital, the rise of software as a service (SaaS) products is growing exponentially. This has forced many businesses to explore new business models, shifting from a revenue model that is made of a customer’s one-time product purchase to a subscription services model, where the revenue now is being made on a continuous recurring basis.

A pricing model such as subscription services works by being renewed and activated automatically with a pre-authorized credit card or checking account. The immediate benefit for businesses is the safety of recurring revenue, which will also allow for a stronger foundation to create lasting customer relationships.

Most subscription businesses charge on a monthly or yearly basis. As previously mentioned, one of the earliest adopters of this model are magazine subscriptions, but now as technology rises many other industries are making the switch to subscription models.

Why do Businesses opt for a subscription model?

There are plenty of reasons why businesses implement a subscription business model. Of course one of the main reasons is the digital transformation and need to innovate, but other reasons include customer retention, growth potential, predictability, and cash flow.

A subscription company enjoys the benefits of having recurring revenue that will generate a consistent cash flow. Predictable revenue is also a benefit but in addition, it becomes helpful when it comes to ordering inventory based on recurring demand. The more consistent demand and less fluctuation in product orders will make forecasting inventory management and schedule orders a much easier more predictable process.

Growth potential also is another added benefit. The subscription plans allow for regular contact with subscribers opening the doors to more opportunities to up-sell or cross-sell products and premium services with subscriptions.

With a monthly or yearly subscription, there is a higher chance for customers to develop loyalty to the brand and products especially if new products or services begin to be introduced. Customer retention will create a stronger long-term relationship where they are more likely to try the different alternatives of the product or services instead of a one-time purchase.

When investors start getting involved and noticing a business, it is more likely for them to take an interest because the appeal of recurring revenue is preferred. Recurring streams of cash flow to transactional-based models will result in higher valuations.

Benefits of a Subscription Business Model:

Getting the most of a Subscription Model with Subscription Billing and Management with NetSuite

When launching a subscription revenue model it is best to not take the spreadsheet and manual approach. A task such as this can become both inefficient and risky. Automating payment collection is where companies should begin their subscription economy. Therefore, implementing a system such as NetSuite ERP that can handle automation for billing cycles monthly is the way to go and to maintain an optimal retention rate. This is one of the core reasoning to why most businesses consider Subscription billing and management with NetSuite.

Automation will streamline billing processes and puts subscription and billing data all in one place. Having your data all in one platform will improve data quality and ensure there is accurate billing. Any mishaps with billing can be extremely frustrating for customers and it is a point where you may lose them if you are not managing billing in a convenient way. It is crucial for an impeccable billing management solution to be in place to ensure the best customer service in the subscription-based business model.

Running global operations, communicating with customers in their own language and currencies is important. With NetSuite, you can implement features that will ensure customers abroad are able to purchase the subscription service or product according to their own local standards. This way they can also determine the value of the items while allowing communication to be more personalized. The convenience of NetSuite is that it can provide all of the above.

NetSuite’s billing management capabilities make it the ideal solution that will support the transactions that a subscription pricing model will need. It offers real-time visibility into inventory levels, detailed reporting, and analytics. Billing operations can be automated in addition to subscription management processes, while also helping businesses make smarter strategic decisions that will improve company performance and meet objectives. Not only that, companies can also use NetSuite CRM (customer relationship management) to improve their customer satisfaction and customer acquisition costs (NetSuite can be integrated with third-party CRM applications as well such as Salesforce, HubSpot etc.)

While subscription products and pricing options are appealing, all businesses really need is a system that is capable of streamlining the billing management and more! NetSuite’s billing management can not only support the billing frequencies that a subscription-based company needs, but it is also able to scale when the opportunity for growth occurs, both locally and globally.

What Customizations & Configurations does your business need?

What Customizations & Configurations does your business need?

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An enterprise resource planning system such as NetSuite is implemented to meet industry standard business operations and processes. NetSuite is not an “all size fits one” solution but rather an all-in-one customizable solution. Meaning you only customize and add the features needed for your business requirements and objectives. Customization and configurations are key for functionality that will align with the business’s unique tasks.

So now, the question of, what ERP requirements are needed to be met for the ideal combination of features, arises. We will go through the difference between customization and configurations is, as well as why management of these is needed.

ERP Customizations

When it comes to ERP customizations, there are many things to consider. First of all, they are different from configurations, subtle yet significant differences.

Customizations have a broader view and typically involve custom coding modifications. Much more labor is required and the margin for error is almost nonexistent. Types of customizations can include things like user interface, document & forms: layout, format, invoices, etc., integrations, and functionality modifications and extensions.

Customizations are best when they are used sparingly, because the more you create, the more complex your system will become therefore leading to harder critical software updates. With ERP Buddies’ extensive experience in complex customizations and support, we can ensure that customizations will be working to their highest standard for your business operations to be fully optimized.

Configurations

ERP configuration is a crucial step in your ERP implementation process. What makes NetSuite ERP systems effective is that they can be tailored to your business process. Every organization has different needs and functions that need the proper support to have a fully functional workflow. A company must be able to ensure that there is financial and reporting accuracy. Not only must you make sure everything is functional for your customers but also your employees. Configurations ultimately are the tweaks and adjustments that are made to the default settings of your ERP software. Things such as access control, custom fields, and preferred units of measurement. These changes are often chosen before implementation, from a preset list or menu of options. They require no alterations to the ERP”s foundational architecture.

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Determining the needs of your company

Before jumping into implementing everything and anything, one must first determine what the needs of the organization are, what level of customization will be needed. There are some things to consider and undertake before determining customizations and configurations. This consists of having a discovery process, where it should consist of defining the need, vision, and scope of the project at hand. This step is important to have a clear stance on what is needed for the business goals. Then it needs to be followed by the planning of how the ERP customization will be one of the many steps to success this means planning then monitoring how the application configuration is performing. Implementation efforts should involve taking measures to reevaluate the current processes then make adjustments accordingly. This can also be translated as the management of customizations and configurations.

Customization Management

When an organization has poorly managed customizations, it can cause strains on your systems and for your employees. It will halt you from making future upgrades resulting in incompatibility when it comes to vendor updates. Customizations management aids to ensure that there is long-term business value. As previously mentioned, once customization is implemented, there needs to be ongoing management to preserve the integrity of the ERP system.

Part of customization management will consist of decluttering. Decluttering customizations that are no longer needed and that the company has outgrown. Something that is always consistent in the business world is changing. A business’s goals are always changing. What was once needed may need to be phased out according to business performance. If the existing customizations are not increasing business value any longer, then there’s no point in continuing the use of it. If anything it only puts a burden on the system.

There is plenty to consider when making ERP customizations to your system, but it is needed to make the best of your solution. Identifying the desired functionality of the system is key. There are many options that can be overwhelming but with a Buddies consultant, we can help ease the process and allow you to choose the best customizations that will be tailored to your operations. A consultant has extensive knowledge that will offer the guidance needed when making a final decision for your business resulting in implementation success.

What is Blockchain & how does it relate to NetSuite?

What is Blockchain & how does it relate to NetSuite?

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What is Blockchain?

Blockchain is a database technology that is used to store transactional data. It is entirely based on the digital form which is why the concept of blockchain is often hard for individuals to wrap their heads around it. It becomes a sort of growing chain of transaction records that are linked together using cryptography. It can also be described as a system for public record-keeping, transactional interactions are verified then added to the record. Originally this system was meant to be used as a way to address issues that traditional banking had in financial transactions, such as eliminating intermediaries and giving individuals autonomy through a public ledger with more transparency. This ledger doesn’t only serve the purpose of dealing with monetary transactions but exchanges of data, agreements, or even automating repetitive processes. It is an additional system that will allow for more transparency in supply chain management. This blockchain ledger is not centralized but rather a decentralized network, therefore making it incorruptible and a superior solution. These blocks of information form a sequence or chain, hence the name blockchain. It has begun a sort of blockchain revolution when it comes to matters of ledger technology and public blockchains.
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Decentralization

One of the benefits of blockchain technology is that the platform is decentralized. Data availability is decentralized allowing for faster performance with low-cost computing. Data on the internet is spread very quickly, even the maps of where data is stored are also decentralized. There are also gains from improved security because data is spread among several network members versus being housed with a single party.

Distributed Ledger

As mentioned previously, with a distributed ledger businesses gain from transparency. It allows for activities and information to be shared between parties. Each computer or individual with access has a copy of the record, and all copies are updated and validated at the same time, ensuring transparency.

Unalterable Records

Blockchain technology has the potential to enhance supply chains and making them more transparent. In the case of ensuring food safety, this technology would allow better tracking of foods and what they come into contact with because the information cannot be altered. Blocks cannot be changed unless there is a consensus. Transparency in tracking becomes a method of easily identifying unsafe goods to protect consumers.

Blockchain is even used in larger retailers such as Walmart and LVMH, luxury fashion retailer uses blockchain tech as a way to ensure the authenticity of their products.

How does this relate to NetSuite ERP?

The Benefits

Oracle NetSuite has announced the release of Oracle Blockchain Cloud. NetSuite’s compatibility with blockchain technology optimizes their current solutions for businesses that have an interest in integrating blockchain but wish to remain NetSuite ERP users.

NetSuite’s easy integration capabilities make it more than easy to work with blockchain. Their customers have been exposed to SuiteCloud Developer Network (SDN), which is comprised of more than 40,000 global organizations and is more than capable to develop blockchain applications that can be tailored to NetSuite customer’s specific business needs and create a record of transactions. The goal is to have a NetSuite compatible solution that can easily integrate systems already in place. With the new blockchain offering, the custom solution will offer ease of onboarding, as well as educating customers on adopting the technology.

NetSuite customers who choose to leverage the new Oracle Blockchain Cloud Service can integrate and experience a wide variety of solutions developed by Oracle partners specifically tailored to support businesses of any size. Additionally, NetSuite SDN partners will also be able to create blockchain applications to meet the needs of NetSuite customers. With this integration, many businesses gain from the innovative digital ledger that will enable new applications from Oracle’s cloud. The Oracle Blockchain Cloud Service is evident of new investments of upcoming technologies that are brought to the NetSuite user base.

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When it comes to digital transformation, blockchain will be at the forefront in the years to come. It is a technology that changes the way we engage with other business entities in terms of transactional functions. Blockchain introduces a unique method of tracking business processes that isn’t seen much but is causing business leaders to turn their heads. Blockchain networks will see tremendous growth and adoption within years due to their ability to aid different industries, not just the financial sector.

The Role of an ERP Consultant

The Role of an ERP Consultant

Businesses of all types require a lot of collaboration and daily organization. There comes a point where companies need to look at the bigger picture and make it a priority to implement an effective solution that will handle tasks such as planning and daily tasks. A digital transformation for business processes is what will be the need to meet business requirements. Finding a system that enhances functionality with the interest of a business’s objectives is where ERP consultants come into play.

An ERP softwares’ main functionality is integrating applications that automate functions such as human resources, services, and technology resulting in lighter workloads for the company workforce. The role of an ERP is essential to the success of business operations. An ERP consultant helps manage and implement ERP systems. Their main task is to make sure a company’s system is working most efficiently. They ensure there is support relating to functionality, development, and integration of a client’s ideas and business objectives. An ERP consultant is the key to the success of a business.

Why do you need an ERP consultant?

When consulting an ERP consultant you are forming and building a partnership. As the business owner, no one will know the specifics of your entire company, the same goes for an ERP consultant with ERP systems. Someone whose daily routine involves developing, integrating, deploying, and evaluating a business management system will know exactly what your business system requires for a complete solution. This relationship is essential to a successful ERP implementation and integration.

The main goal of ERP implementation is to simplify the business processes, they can help companies save an immense amount of time and money. By simplifying tasks, company operations experience an increase in productivity and ease of work. This allows teams to prioritize other tasks.

ERP consultants have extensive knowledge of the ERP market and what types of software are available and best suited for your company’s needs. With their advice, they can guide you to ensure you can dominate and capitalize in your industry. An expert ERP consultant such as our ERP Buddies consultants will keep your ERP project on track by following procedures such as understanding and guiding client objectives and mitigating project risks.

Responsibilities of an ERP Consultant include:

System Analysis

With a system analysis, two scenarios can be presented. An organization has no ERP implemented or an organization has an existing system in place. When no ERP system is in place a consultant must analyze the business processes to determine the requirements the business needs to work to its full potential. When there’s an existing system the consultant will turn the focus to determine where there are weak spots that can be improved.

User Training and Support

Once implemented a consultant’s role is to demonstrate how the enterprise resource planning system functions and how to utilize it for the best optimization of project management. Without the critical skill, a companies team will be inadequate to use the system to deliver results, thus ending in money and time loss.

Technical Support

ERP technical teams are responsible for the day-to-day maintenance of the ERP system and installing updates. Another part of the system also is system configuration and data migration. These tasks are done to keep the system performing at its best.

Project Development

When it comes to project development an ERP consultant will need to coordinate with other departments in the company to ensure that the current upgrades are being well received and functioning to the needs of employees. Preparing a demonstration to make sure that the company business leaders understand the change implemented and how it will work to their advantage.

What makes ERP Buddies the best consulting firm?

The ERP Buddies team is composed of business and technical experts. Our core focus is to provide tools & strategies to allow clients to meet their business goals and requirements. With different branches based in India, Philipines, UK, and Canada we provide IT consulting, software product development, management consulting and we even have partnerships with NetSuite, Microsoft Dynamics, Shopify, Salesforce, and DellBoomi. ERP Buddies services include a deep dive discovery call, consulting advice based on required modules and price as per budget, and an overall robust consultative approach!

An ERP consultant works as an advisor and in essence, they should advise with the best interest of your companies objectives and success. Consultants hold a lot of technical skills that complement communication skills to advise the best suited ERP functions for your business model. Hold them to the highest standards and value their experiences and expertise. Ultimately, putting trust in their abilities is what will make the experience that much better. No one will be knowledgeable about the software than a consultant.

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