SAN JOSE, Calif., May 15, 2014 /PRNewswire/ -- NETSUITE SUITEWORLD 2014, -- NetSuite Inc. (NYSE: N), the industry's leading provider of cloud-based financials / ERP and omnichannel commerce software suites, today announced that MusclePharm (OTCQB: MSLP), an award-winning sports nutrition company, has deployed NetSuite OneWorld to drive its rapid global business growth. To ensure agility and scalability, MusclePharm replaced QuickBooks at its US headquarters, Sage BusinessVision at MuclePharm Canada and a Sage Accpac solution used by BioZone, a recent acquisition, as well as numerous Excel spreadsheets, with NetSuite OneWorld's unified cloud-based business management software solution. Now MusclePharm is relying on NetSuite OneWorld to manage mission-critical business operations including financial consolidation, multi-currency management, inventory management, order management and warehouse management – all within one unified solution without having to make significant investments in IT infrastructure and IT staff. As a result, MusclePharm gained the operational efficiency, business agility and scalability that it needed, and was able to grow its revenue 35x from $3.2 million in 2010 to $110.9 million in 2013, while expanding its distribution and customer base across 110 countries on six continents, with 35,000 retail partner locations such as Costco, Dick's Sporting Goods and GNC.
"NetSuite has been a key factor enabling MusclePharm to scale incredibly fast across the globe and add new business units to fuel even more rapid growth," said Kyle Gosnell, MusclePharm Vice President of IT. "We can spend time on strategy, not IT, and handle growth with a great cloud ERP system that can scale, integrate and just plain works. There's no way we could have done that with any other system."
The booming global market for sports nutrition supplements presents huge business growth opportunities for wholesale distributors and manufacturers. Research firm Euromonitor reports the sports nutrition supplement market has nearly doubled between 2007 and 2012, from $4.2 billion to $8.2 billion, with an additional 60 percent growth projected between 2012 and 2017, to more than $13 billion 1. That growth comes with a set of challenges for companies that have traditionally been reliant on a hairball of disparate software systems creating inefficiencies that stifle business growth and innovation.
With NetSuite OneWorld, Denver-based MusclePharm is able to leverage the following key features to drive business growth and enjoy the unprecedented benefits:
- Real-time global financial consolidation that provides real-time visibility. MusclePharm has visibility across all of its subsidiaries, divisions and business units with one financial system of record.
- Seamless order management system for large volume transactions with orders coming from thousands of channels globally. NetSuite OneWorld gives MusclePharm the ability to support true omnichannel commerce across multiple channels such as online, point-of-sale (POS) and call center. NetSuite enables more than $15 million in transactions per month for MusclePharm with orders coming in from 35,000 retail partner locations, its own websites and a call center. NetSuite, the industry's leading cloud-based order management platform, supports multi-national, multi-tax, multi-site, multi-currency and multi-language environments.
- Superior inventory and warehouse management reduces order backlogs and carrying costs. NetSuite OneWorld has completely transformed MusclePharm's old inventory management system run by a third-party logistics provider, enabling the company to more efficiently manage inventory and fulfillment amidst fast-growing transaction volumes coming from thousands of channels, while reducing order backlogs and carrying costs, and improving fulfillment rates. "We had no insight into our inventory with the 3PL," Gosnell said. "We've gained incredibly valuable business intelligence by moving our inventory into NetSuite and make better decisions in real time."
- Rapid integration of a new acquisition. NetSuite OneWorld gives MusclePharm the agility to accelerate time to value from its January 2014 acquisition of BioZone Pharmaceuticals. While switching off Sage, BioZone quickly got up and running on NetSuite OneWorld as a MusclePharm subsidiary.
- Rapid launch of new lines of business. The new MusclePharm.com online store as well as Arnold.com and FitMiss.com brands were launched with easy set-up and execution through NetSuite OneWorld, which supports the entire back-end business operations of the two new sites.
- Fast setup of new offices and facilities. MusclePharm opened new offices and facilities in 2013 to support its growth, including a new warehouse in Tennessee that processes millions of orders each month. A financial operations office in Idaho and a call center in Ohio were also added. NetSuite OneWorld gives MusclePharm the ability to set up these business operations very quickly. "NetSuite has been a key factor in enabling us to scale this fast and add completely new business units to help fuel even more rapid growth," Gosnell said. "This helps to make IT a profit center, not a cost center. Without NetSuite, this would have otherwise been extremely expensive and downright impossible given our accelerated time frame."
- Transparency as a public company. NetSuite's award-winning financial management capabilities have been indispensable in helping MusclePharm increase its financial rigor and transparency from its origins on QuickBooks, generating auditable financial reports that can withstand investor and regulatory scrutiny.
- Customization to meet specific business needs. The NetSuite SuiteCloud Development Platform provided the flexibility necessary to tailor NetSuite OneWorld to meet MusclePharm's specific needs. Integrating NetSuite with Avalara's sales tax collection and remittance solution covering more than 10,000 U.S. tax jurisdictions eliminated manual processes and minimized the risk of error. Tableau Software's cloud-based visual data analytics enabled advanced data visualization for insights into business performance and EDI integrations with SuiteCloud Developer Network Partner SPS Commerce allows MusclePharm to connect with retailers worldwide.