State of Manufacturing ERP - Part 4 - Rootstock and NetSuite

Brian Sommer Profile picture for user brianssommer May 14, 2017
In this fourth part of the manufacturing ERP series, we turn our attention to NetSuite and rival RootStock.

Manufacturing ERP
NetSuite update

NetSuite, now part of Oracle Corporation, recently held its SuiteWorld 2017 event in Las Vegas. NetSuite has a large suite of application software that includes financials, professional services, e-tailing/omni-channel retailing, Human Capital Management (i.e., a new solution called SuitePeople) and more. It also has manufacturing and distribution functionality.

Several diginomica pieces have been generated on the SuiteWorld event (see below). However, this piece only focuses on NetSuite’s manufacturing and distribution functionality.

NetSuite continues to make their manufacturing solution more complete and enhance the depth of functionality within it.

NetSuite continues to add more customers for its manufacturing solution. NetSuite executives were quite clear that the products will be targeted for mid-market firms and that it will be sold to firms seeking a cloud-based ERP. Interestingly, these executives indicated that they will be happy to sell this to users of Infor and other competitive products including JDEdwards (a product line Oracle acquired in 2004-5) if they are interested in a multi-tenant cloud product line.

NetSuite hopes that it can leverage Oracle’s immense sales organization and global cloud network to rapidly expand its install base around the world. While NetSuite had been successful in penetrating a number of countries, you could sense that Oracle/NetSuite wants to take NetSuite Manufacturing and Distribution heavily into European countries – especially countries with a big and long-time track record of using arch-rival SAP’s ERP software. A greater expansion in China was also indicated as a major interest area.

NetSuite has also created a fast implementation capability for customers called SuiteSuccess. More than just another fast, cloud install or instantiation, SuiteSuccess comes in a dozen editions for eight industries. Manufacturing and wholesale distribution were two of those industries. SuiteSuccess contains industry best practices, KPIs, reports, workflows, dashboards and a new customer engagement model to create faster time to value for customers. Within each supported industry, the company has built micro-vertical solutions specific to given locations and industry requirements.

Finally, NetSuite has added functionality to support the movement of manufacturers into the As-A-Service digital revolution. Part of this solution was apparent in the new NetSuite Billing and Revenue Management accounting enhancements. The software can track and allocate multiple components of a transaction (e.g., product revenue, services revenue, sales commissions, etc.) to satisfy newer revenue recognition requirements.

Source - NetSuite

Rootstock, the Platform Pioneer, Goes Global

Rootstock is a multi-tenant ERP that runs on the Force platform. Interestingly, the product was originally created with the NetSuite NS-BOS platform and subsequently re-written for the environment.

Recent news regarding Rootstock includes:

  • Big Bang ERP, a Montreal based consultancy and integrator, has been added as channel partner for Rootstock. Big Bang ERP also implements other Salesforce ecosystem solutions such as FinancialForce and (as well as the software from Rootstock competitor NetSuite).
  • Announced a partnership with Optingo, a cloud solutions provider in Central and Eastern Europe.
  • Announced a partnership with Balanced Force of the Netherlands. Balanced Force is an ERP solution provider in the project, construction and engineering sectors for Benelux companies. The Balanced Force team has had experience implementing other ERP solutions from Baan, SAP and MSFT Dynamics and work with SME’s and multi-nationals.
  • Rootstock customer Equipter/New Heights LLC (Paradise, PA) has gone live. Equipter is an American-owned, family-run business that designs and manufactures equipment to help businesses in construction, general contracting, residential roofing, commercial roofing and more improve debris removal and in turn improve efficiency.
  • Rootstock customer TransitWorks has gone live. The company builds transit vans and has three plants within the United States.
  • Rootstock customer Matouk has gone live. Matouk is a full-service luxury home textile source that supplies linens for the table, bed and bath.

Rootstock acquired new customers in:

  • Austria (the Rieder Group a maker of concrete products).
  • Virginia (First Call Parts a distributor of imaging parts).
  • Michigan (Gerotech - a CNC machine tool solutions and engineering services firm).
  • Missouri (Dent Wizard).
  • Sweden (Josef Davidssons EFTR. – a manufacturer of wood burning stoves, etc.).
  • West Virginia (Richwood - a conveyor solutions designer and manufacturer)

Rootstock embraced the power of platforms early. They also understand the value in having access to a large store of other applications that are available to customers via the Salesforce Application Exchange. Even new Rootstock partners see the value in cross-selling Rootstock ERP with the HR, SCM and other applications found on the Salesforce AppExchange.

Readers should note the geographic expansion, especially in Europe, for Rootstock. Rootstock is finding partners and customers in a market that has lagged North America in cloud (or multi-tenant cloud) adoption. That tide is turning as the economic and CapEx benefits from newer cloud solutions are often superior to on-premises value propositions.

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