Philippine Auto Service Centre Chain Expands Existing Business into Franchising Leveraging NetSuite OneWorld
SAN MATEO, Calif. and MAKATI CITY, Philippines—November 23, 2015—NetSuite Inc. (NYSE: N), the industry’s leading provider of cloud-based financials / ERP and omnichannel commerce software suites, today announced that Motech, an automotive service chain in the Philippines, has achieved exponential business growth with help from NetSuite OneWorld. Motech replaced six instances of Sage BusinessWorks used by its six stores with one instance of NetSuite OneWorld to manage mission-critical business processes including financial consolidation, local Philippine tax and regulation compliance, warehouse management, inventory management, order management and subsidiary management.
With NetSuite OneWorld, Motech was able to streamline business processes across six company-owned stores in the country, achieving operational efficiency and cost savings. Additionally, NetSuite OneWorld gave Motech the agility, flexibility and scalability it needed to grow and adopt a new business model, enabling the company to expand into franchising. Since 2013, Motech has added 28 retail franchises across the Philippines. With each franchise accounted for as a subsidiary in NetSuite OneWorld, Motech has a real-time view of franchise performance and can better collaborate with franchisees to manage inventory, profitability and service levels. As it continues its rapid expansion strategy, Motech plans to increase its number of stores to 56 by 2017, with a goal of 100 locations by 2020.
“The flexibility, agility and visibility we have with NetSuite OneWorld has been a key driver, if not the main driver, in our continued growth,” said Motech President Eugene Naguiat, whose father, Rommel Naguiat, founded the company in 1977. “NetSuite has given us the agility to be creative in the business and run everything efficiently on the same platform.”
After struggling with duplicate data entry, a lack of visibility across the business, and significant IT maintenance requirements, Motech realised that its previous software environment could not support its ambitious strategic objectives, turning to NetSuite for an agile, scalable cloud platform that could support innovation and growth. Implementation and ongoing support and optimization by PGE Solutions, a 5-Star NetSuite Solution Provider partner headquartered in Manila, has helped Motech capitalise on the transformational potential of the NetSuite platform.
“I wouldn’t be able to envision an expansion of that magnitude if I didn’t have NetSuite to support the business,” Naguiat said. “NetSuite has made it possible to go from simply running the business to truly growing the business in very creative and effective ways.”
“NetSuite has provided a standardised, stable and scalable platform that has helped Motech to grow its business exponentially,” said VJ Africa, CEO of PGE Solutions. “Motech has really taken full advantage of NetSuite to disrupt how car service is provided and reap the rewards of a customer-centric and data-driven approach to business.”
With support for 190 currencies, 19 languages and automated tax compliance in more than 50 countries, NetSuite OneWorld has provided several benefits for Motech including:
Easy multi-subsidiary management. NetSuite OneWorld enables Motech to onboard a new franchise as a “subsidiary” in a matter of hours, compared to days or weeks of work to set up on-premise systems in each location. The company can now more easily manage, aggregate and support all of its franchisees, with Motech also gaining a high-level visibility into franchisee revenues, margins, profits, conversion rates and other business metrics. NetSuite’s unified business management platform is also an attractive selling point for franchisees, who embrace the system for visibility and automation.
Streamlined local tax reporting. NetSuite OneWorld’s unique local Philippines tax compliance functionality enables Motech to perform financial reconciliations and meet local tax calculation and reporting requirements at greater speed.
Improved inventory and warehouse management. Motech now has zero inventory variance in company-owned stores and two warehouses, compared to writing off between P200,000 and P500,000 in inventory annually before NetSuite. Motech has also reduced the time needed for inventory reconciliation across its nearly 3,000 SKUs from five days of physical inspection at company-owned stores and its warehouses to a single day.
Superior order management. NetSuite’s order management has given Motech and its franchisees a real-time view into what is in stock, on order or on backorder at any given time, helping to eliminate manual bottlenecks and errors, and creating a smooth flow from sales quote to approved order for its six company-owned stores and 28 franchised stores. Motech also uses the functionality to encode the services and parts needed by each customer, using the data to analyze sales order information and project future parts and orders.
Quick disaster recovery. NetSuite also helped Motech after a super typhoon hit the Philippines, flooding some of its branches. As a cloud-based solution, NetSuite enabled Motech to survive the disaster and subsequent flooding without damage to on-premise hardware or vital paper records. At the same time, Motech used its extensive customer database to reach out to customers in areas affected by flooding, offering needed services to get vehicles back on the road.
Today, more than 24,000 companies and subsidiaries depend on NetSuite to run complex, mission-critical business processes globally in the cloud. Since its inception in 1998, NetSuite has established itself as the leading provider of enterprise-ready cloud business management suites of enterprise resource planning (ERP), customer relationship management (CRM), and ecommerce applications for businesses of all sizes. Many FORTUNE 100 companies rely on NetSuite to accelerate innovation and business transformation. NetSuite continues its success in delivering the best cloud business management suites to businesses around the world, enabling them to lower IT costs significantly while increasing productivity, as the global adoption of the cloud accelerates.
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