Case Study: Hourglass Simplifies its Day-to-Day Operations with Cloud-based Solutions
With rising demand for cosmetics, manufacturers feel pressure to fulfil customer’s demands. Plus, it has become needful for cosmetic producers to sell their product online to stay connected with customers and survive the competition. To become global supplier, these manufacturers are also making collaborations with foreign retails or placing their retail shops in foreign countries. At a time, manufacturers are performing various tasks to supply all orders on time. And for smooth functioning of all the tasks, these manufacturers need strong support of technology-based solutions.
One such beauty cosmetic company, Hourglass was looking for solutions to accelerate its growth. Hourglass was founded by Caris James in 2004 at Venice, CA. and Unilever acquired it later. Today, the company has approximately 280 employees worldwide. It now operates under six legal entities and its half business is in United States and half is in other countries. Hourglass works with about 1,000 stores such as Sephora, Nordstrom’s, Bergdorf Goodman, Barneys New York, etc. It has online retail website and two retail stores: one in Venice, CA and another in New York City.
Hourglass has a very complicated business model as it deals directly with its domestic as well as global customers, manufacturers and suppliers. When Unilever acquired Hourglass, the company had aggressive growth plans. Unilever was running SAP and using outdated accounting system by Sage and a buggy WMS system. On the other hand, all intercompany tasks related to accounting of six entities and dealing of 16 currencies were supposed to be done outside their system with only four finance employees.
Hourglass needed a system that could manage all its daily processes directly in the system. Hourglass evaluated many solutions from Oracle, SAP, and other providers as part of its due diligence, but at the end it selected NetSuite. NetSuite offered a cloud-based solution that doesn’t need support from IT staff. NetSuite also allows them to run all processes in the system directly. To handle its implementation, GSI was selected based on the expertise.
Hourglass is now running all its day-to-day business operations in NetSuite. This implementation has helped Hourglass to eliminate the manual efforts previously required.
“Hourglass was able to eliminate hundreds of hours of work each month as well as position the company for major international growth with a finance staff of 4,” said Josh Rosenzweig, CFO/COO for Hourglass.
Now, Hourglass is now able to track profits of its products and customers immediately and it allows the company to be more competitive. “Using NetSuite OneWorld, we are now able to get real-time visibility into the profitability of our business, working across 6 legal entities, 16 currencies and almost 8,000 separate items” added Rosenzweig.
“GSI was the only partner that said they could handle our complex accounting and contextual business reporting needs, including incorporating our parent company’s chart of accounts. They delivered on all fronts.”
Neha writes articles on sectors including medicine, food, materials, and science & technology. A qualified statistician, she has the ability to observe and analyze the trends in global markets and write compelling articles that help CXOs in decision making. She is a bookworm and loves to read fiction, lifestyle, science and technology. Neha comes with 6 years of experience in content writing and editing that involves blog writing, preparation of study materials and OERs.