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Cloud ERP migration cut-off: abrupt and brutal works best

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Change rarely comes easy, especially when attempting to alleviate biases.

When Cosmosupplylab’s CFO Richard Genrault (pictured) joined the company in 2013, there existed a certain level of hostility toward ERP adoption, with a preference for manual and Microsoft Excel-driven processes. A failed Epicor implementation that occurred prior to Genrault’s joining had led to a negative opinion of ERP that permeated through the company, and Genrault and the management team recognized that something had to be done to demystify the concept of ERP among staff or growth plans would be stifled.

Business at Cosmosupplylab was growing. The Germany-founded design and manufacturing company, which shifted its headquarters to Hong Kong, manages four factories in China. Items produced by Cosmosupplylab range from mobile device cases to packaging for major cosmetic brands, with several clients requesting for complete vertical integration throughout the design, development and manufacturing process. “Revenue multiplied by 2.5 times during the first four years.  Also, clients didn’t want us to use subcontractors, and our strength lay with our knowledge of working with different materials to produce suitable products. We’re still continuing to diversify our product lines and may open our own e-commerce storefront in future,” Genrault shared.

Continuing to operate manually would not support the business, particularly due to the lack of visibility over the supply chain and resources spent managing external applications. Genrault knew company-wide ERP adoption was essential and kick started plans for a speedy implementation by doing away with the traditional RFP process.

According to Genrault, the choice of ERP provider was an easy one to make. The company’s CEO had dealt with a number of ERP providers and understood the drawbacks of ERP giants such as Oracle and SAP, which would take at least a year to implement and draw significant monetary investment.

“We had neither the time nor human and financial resources to deal with the likes of Oracle or SAP back then. What we needed was a reactive and simple solution,” said Genrault, adding how the consulting company employed by Cosmosupplylab had also moved on to supporting Netsuite despite being an Oracle specialist previously. “We couldn’t spend millions on security and needed a flexible system based in the cloud that could support future growth, so NetSuite was the best answer.”

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