Shaw Industries Moves to the Cloud, Deploys NetSuite OneWorld to Run a New Manufacturing Plant in China and 10 International Subsidiaries While Maintaining On-Premise Software Systems at Headquarters
$4 Billion Industry Leader Achieves Rapid Deployment with Lean IT Footprint
SAN MATEO, Calif. — NetSuite Inc. (NYSE: N), the industry's leading provider of cloud-based financials / ERP and omnichannel commerce software suites, today announced that Shaw Industries, a subsidiary of Berkshire Hathaway (NYSE: BRK-A) and the world's largest carpet manufacturer with more than $4 billion in annual sales, has rolled out NetSuite OneWorld, the world's most deployed cloud ERP solution for global businesses, in a two-tier ERP model to run a new 210,000-square-foot manufacturing facility in Nantong, China, and manage 10 international subsidiaries in countries including China, India, Luxembourg, Hong Kong, Singapore and Australia. Shaw Industries' China plant, which opened this year to produce carpet tile for commercial and residential customers in China and the broader Asian market, is now relying on NetSuite OneWorld for financials, financial consolidations and reporting, order management, inventory management, manufacturing and purchasing. The new plant projects to employ up to 250 workers, produce 5 million square yards of carpet tile a year and enable Shaw Industries to reduce the time previously required to deliver U.S.-made carpet tile to the Asian market by several weeks. NetSuite support for the Chinese language allows the company to extend the solution for use across the manufacturing plant and other locations in China, while multi-currency capabilities streamline transactions in the Chinese renminbi and the Australian dollar.
Shaw Industries did thorough due diligence and evaluated the major ERP providers and determined that NetSuite OneWorld best met its criteria for rapid deployment with a lean IT footprint, easy and repeatable deployment model, ease of use and support for multiple languages and currencies to help power international expansion. The large-scale deployment of NetSuite OneWorld, implemented by NetSuite professional services, is designed to support Shaw Industries' strategic objective of rapid global growth, and is integrated with legacy on-premise systems at the company's headquarters in Dalton, Ga., including an Oracle PeopleSoft financials/HR system and a custom-built legacy application for inventory and supply chain.
NetSuite Manufacturing Functionality Creates an Efficient Process for Shaw Industries' Plant in China
NetSuite manufacturing functionality streamlined the manufacturing processes and improved operational efficiency, providing its China-based manufacturing plant with the following capabilities: -
• Manufacturing carpet tile in China for sale in China and Asia through a distribution network that leverages NetSuite's multi-location inventory capabilities to strategically position its products within the markets it serves.
• Lot control, which is critical to its manufacturing process to ensure customers get products that match their expectations for product color with little or no variation.
• Work Orders that are used to build both sub-assemblies and final assemblies, and which are key throughout the manufacturing process to pull lot-controlled materials from inventory for use in the production process.
• Advanced Inventory Management and Advanced Bin Management that allow Shaw Industries to accurately control its inventory and re-ordering processes to ensure production targets are met.
• Standard Cost and Work in Process accounting (WIP) that allow the company to control its costs and investigate process variances at all stages of its manufacturing process.
"The company is actively seeking to grow sales around the world and we needed a cloud-based solution that could support different languages and currencies with lean resource requirements," said Roddy McKaig, Shaw Industries CIO. "Because NetSuite is in the cloud, we can enter new global markets faster than if we were to set up servers in each location.
"Anywhere we go outside of North America, whether establishing a sales office or operational unit, our intention is to use NetSuite," said McKaig. "We're very confident that NetSuite will seamlessly support our growth outside of North America."
NetSuite OneWorld, with support for 190 currencies, 19 languages and automated tax compliance in over 50 countries, enables Shaw to manage its global subsidiaries and seamlessly conduct international business. Shaw Industries is leveraging NetSuite OneWorld to manage its 10 international subsidiaries with real-time visibility and global financial consolidation and reporting. NetSuite's cloud solution is enabling Shaw to aggressively pursue its global growth objectives at a fraction of the time and capital cost required of an on-premise ERP alternative, while positioning it to accelerate time to value of any future overseas acquisitions.
McKaig noted that Shaw Industries' Australian subsidiary was using NetSuite before the company acquired it several years ago. "They vouched they had no problems with performance or response times and that gave us additional confidence," McKaig said.
About Shaw Industries
The world's largest carpet manufacturer and a leading floor covering provider, Shaw Industries Group, Inc. is a vertically integrated manufacturer that supplies carpet, rugs, hardwood, laminate, resilient, tile and stone flooring products and synthetic turf to residential and commercial markets worldwide. A wholly owned subsidiary of Berkshire Hathaway, Inc. with more than $4 billion in annual sales and 23,000 associates, Shaw is headquartered in Dalton, Georgia, with salespeople and/or offices located throughout the US, as well as Australia, Canada, China, Mexico, Singapore, India and the United Kingdom. For more information, visit http://shawfloors.com/about-shaw.
Today, more than 16,000 companies and subsidiaries depend on NetSuite to run complex, mission-critical business processes globally in the cloud. Since its inception in 1998, NetSuite has established itself as the leading provider of enterprise-class cloud financials/ERP suites for divisions of large enterprises and mid-sized organizations seeking to upgrade their antiquated client/server ERP systems. NetSuite excels at streamlining business operations as demonstrated in a recent Gartner study naming NetSuite as the fastest growing financial management software vendor on a global basis. NetSuite continues its success in delivering the best cloud ERP/financials suites to businesses around the world, enabling them to lower IT costs significantly while increasing productivity, as the global adoption of the cloud is accelerating.
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