Loctek Automates Accounting Across Subsidiaries

Loctek Automates Accounting Across International Subsidiaries With NetSuite OneWorld

Loctek is a leading manufacturer of ergonomic office products, from adjustable desks and workstations to motorised TV lifts and desk bikes. More than 700 R&D engineers continually add to the China-based company’s portfolio of 1,000 patents. Following years of consistent growth, Loctek went public in 2017, furthering its mission to bring healthy movement to the workplace.

Company

Loctek

Location

Ningbo, Zhejiang Province, China

Industry

Manufacturing

Revenue

$500M-1B

EMPLOYEES

1,000 to 4,999

Number of Countries

Number of Subsidiaries

NETSUITE PRODUCTS IMPLEMENTED

NetSuite Fixed Assets Management
NetSuite Inventory Management
NetSuite OneWorld
NetSuite Planning & Budgeting

“Loctek's overseas business is fully integrated thanks to NetSuite. We've automated financial processes and streamlined our whole operation, helping us to continue our global expansion.” Zhihui Mei, Senior Finance Manager, Loctek

A Well-Designed System Supports Well-Designed Products

A fast-expanding global enterprise: In 2011, Loctek started selling internationally via Amazon and other marketplaces. As its ecommerce business grew, it opened warehouses across Europe, North America and Japan to shorten delivery times in each region. The company now manages four major manufacturing facilities and 17 warehouses.

Uncomfortable systems and processes: Loctek’s Digiwin ERP system couldn’t automatically convert currencies or consolidate financials across subsidiaries, so the team had to manually input data into spreadsheets and crunch numbers to create monthly reports. The system didn’t integrate with Amazon, so Loctek reconciled Amazon Pay transactions by hand, which took up to a week each month. And warehouse data was siloed by country, so leaders lacked a clear picture of global inventory numbers, causing delivery delays and stockouts.

Accounting automation saves time: Loctek implemented NetSuite OneWorld, bringing efficiency to the accounting department. With automatic currency conversions and financial consolidation across entities, the system also gives leaders access to real-time financial reports so they don’t have to wait until month-end for manually created reports. Amazon Pay reconciliation is automated and includes data on every transaction and associated Amazon fees, saving more than 40 hours a week in employees’ time.

Making customers comfortable: Loctek also now has complete visibility of inventory across its manufacturing facilities and warehouses. With accurate data on each SKU, the business can better navigate supply chain issues and increase production to minimise stockouts, yielding higher customer satisfaction and better online reviews. As it continues expanding, Loctek plans to further use the SuiteCloud Platform to adapt and customise its ERP system.

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