Question-   Lionel Case Study



Lionel is a wholesale distribution company locate in Concord, N.C.  NASCAR collectibles is subsidiary of Lionel where NetSuite ERP was implemented replacing IBM AS/400 ERP systems. NetSuite OneWorld is a real-time, globally integrated management systems for businesses that has operations worldwide. This ERP solution can be set up at a cost of traditional onsite ERP solution to manage the multinational and subsidiary operations. It helps improving the efficiency as it provides real-time information and integration and also customization can be done depending on the needs of companies and subsidiaries. The four main features of OneWorld are it is a global ERP which can address the needs of multinational and subsidiary companies by consolidation their operations, Global Ecommerce which allows to do ecommerce worldwide with different language, currency,, country and web stores of different brand which can be managed by one ERP system, Global services resource planning which allows to complete a service cycle including marketing, project management service delivery, billing and revenue management, and international capabilities includes operating in different currencies, taxation regulations and requirements for reporting across countries and its subsidiaries in real-time financial integration and visibility. (ORACLE NetSuite, n.d.)

Lionel had delays and low visibility into sales, customers, inventory and supplier data which affected the efficiency and growth of the business. As the company was outsourcing the fulfilment and distribution functions, had unnecessary expense on those operations. The company had two website which were less integrated with order and inventory management systems of Lionel has led to consuming more time and had to update two systems timely when there were promotions or price changes or when new products are launched. This had impact in inaccuracy in inventory data and bad customer experiences.  (NetSuite, n.d.)

After implementing NetSuite OneWorld ERP systems in NASCAR, the efficiency of the system led the whole Lionel enterprises to implement this ERP system. It enabled fast, easy consolidation of financial systems and helped in easy reporting between parent and subsidiary of Lionel. The mangers can access the data and business reporting without relying on IT department which also saved the cost of five fulltime IT professionals who managed the previous systems. Lionel have relaunched the train’s and NASCAR’s sites on SuiteCommerce Advanced within a month which helped in companies growth. The customers and staff can easily access real-time data including the order and inventory status also offers clear visibility to sales and inventory which helps improving promotions and reduce the risk of out-of-stock. The company can also handle the spike in sales during the season time. The customer now can access these website in all devices without any trouble.  The cost incurred by outsourcing its distribution and fulfilment functions have been reduced by the systems capability for in-house distribution and fulfilment. (NetSuite, n.d.)

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