An ERP shootout: NetSuite takes SaaSy approach to competing with SAP

It is probably not a coincidence that NetSuite issued a press release on a specific set of new customer wins a day before ERP market leader SAP opened its North American user conference.

05/12/2009


It’s probably not a coincidence that NetSuite issued a press release on a specific set of new customer wins a day before ERP market leader SAP opened its North American user conference. NetSuite , a supplier of on-demand business applications for mid size enterprises, has made it clear that it sees SAP as a competitor in that space.
On Monday, NetSuite issued a press release naming three companies that had selected its solutions over SAP. Today, SAP opens the North American version of SAPPHIRE , its annual user conference, in Orlando.
“By turning to NetSuite's unique integration of ERP, CRM, and e-commerce capabilities in a single on-demand application, customers are now realizing the benefits of a modern, enterprise-class business operations platform accessible anywhere in the world, at a fraction of the cost and administrative overhead of SAP,” the NetSuite release stated.
The release also referred to a July 2008 report from Forrester Research which concludes that complications associated with upgrading and maintaining traditional on-premise software are pushing companies toward the on-demand or Software-as-a-Service (SaaS) model.
The first real indication of NetSuite’s desire to compete directly with SAP in the mid-market came in April with the launch of a package called NetSuite OneWorld for SAP.
Reporting for companies of all sizes
That solution allows companies of all sizes to run divisions of their businesses on the SaaS-based NetSuite solution while rolling up necessary reporting data to a corporate-level SAP package.
Large companies have long taken that approach with on-premise software—using ERP packages geared for smaller companies at the division level and connecting them to an SAP package at corporate headquarters.
NetSuite claims its SaaS model makes this strategy easier to execute. “For those companies already deeply reliant on SAP solutions looking to embrace the advantages offered by SaaS, NetSuite OneWorld for SAP offers seamless integration for subsidiaries and corporate divisions which need their own enterprise-grade capabilities while maintaining transparency with the central system of record,” the NetSuite release said.
NetSuite also touts its OneWorld solution as a superior alternative to SAP Business One, a package that SAP introduced several years ago in hopes of capturing new business among mid-sized enterprises.
Faster shipments, fewer errors
The NetSuite release said Schaeffer Manufacturing Co., a St. Louis, MO-based producer of synthetic motor oils and other lubricants, chose NetSuite over SAP Business One. NetSuite enabled Schaeffer to cut shipment preparation time, reduce errors from data re-keying, and eliminate substantial expenses on everything from software maintenance to redundant paper forms. Because NetSuite is built to make electronic trading and payments easy, Schaeffer has more than doubled its electronic data interchange (EDI) order volume, and conducts ten times as many transactions through electronic funds transfer (EFT), the release said. It then went on to quote the company’s CFO.
"NetSuite makes it easy for us to offer EDI and EFT because it automates the processes, so not only is our billing time reduced, but our competitive advantage is strengthened,” said Schaeffer CFO Will Gregerson. "With NetSuite, we're saving over $100,000 per year, we get our products to customers in half the time, and we haven't had to add to our staff."
Follow Sidney Hill on twitter : www.twitter.com/mbtsid





No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2013 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Leaders Under 40 program features outstanding young people who are making a difference in manufacturing. View the 2013 Leaders here.
The new control room: It's got all the bells and whistles - and alarms, too; Remote maintenance; Specifying VFDs
2014 forecast issue: To serve and to manufacture - Veterans will bring skill and discipline to the plant floor if we can find a way to get them there.
2013 Top Plant: Lincoln Electric Company, Cleveland, Ohio
Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Plant Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.

Bring focus to PLC programming: 5 things to avoid in putting your system together; Managing the DCS upgrade; PLM upgrade: a step-by-step approach
Balancing the bagging triangle; PID tuning improves process efficiency; Standardizing control room HMIs
Commissioning electrical systems in mission critical facilities; Anticipating the Smart Grid; Mitigating arc flash hazards in medium-voltage switchgear; Comparing generator sizing software

Annual Salary Survey

Participate in the 2013 Salary Survey

In a year when manufacturing continued to lead the economic rebound, it makes sense that plant manager bonuses rebounded. Plant Engineering’s annual Salary Survey shows both wages and bonuses rose in 2012 after a retreat the year before.

Average salary across all job titles for plant floor management rose 3.5% to $95,446, and bonus compensation jumped to $15,162, a 4.2% increase from the 2010 level and double the 2011 total, which showed a sharp drop in bonus.

2012 Salary Survey Analysis

2012 Salary Survey Results

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.