1. Customer Testimonials
  2. Penguin Computing

Penguin Computing Replaces SAP R/3 for Better Visibility and Control with NetSuite

Penguin Computing

Company

Penguin Computing

Location

Fremont, Calif.

Industry

Computer Hardware

Applications Replaced

SAP R/3

Solutions

ERP
Work Orders and Assemblies
Advanced Inventory

“We're more efficient on NetSuite than we were on SAP and we have real-time visibility into all aspects of the business. It's mind-blowing how easy it is to find and access information in NetSuite compared to where we were before.” Penguin Computing

Customer Success

  • Leading provider of Linux-based and high performance enterprise computing solutions has gained new scalability, visibility and business control since replacing SAP R/3.
  • Penguin Computing uses NetSuite as a single system of record across financials, revenue recognition, work orders and assemblies, and inventory management.
  • Transparency into key business metrics has enabled informed, data-driven decisions that grow the business beyond 2,500 customers in 40 countries.
  • Penguin Computing has eliminated integration hassles, high maintenance fees and version lock issues with its problematic SAP system.
  • Business users have on-demand access to real-time data and rich reporting capabilities not possible with in the previous SAP environment.
  • NetSuite Work Orders and Assemblies module supports build-to-order production at California headquarters with capabilities for work orders, bin management, assemblies and work in process.
  • NetSuite revenue recognition streamlines diverse revenue streams across both usage-based and recurring subscription models.
  • NetSuite inventory management functionality improves speed and precision in sourcing thousands of components from 12 core suppliers and 50 less-used suppliers.
  • Phase two rollout of NetSuite Demand Planning and WIP will give Penguin Computing new capabilities in production, inventory forecasting and replenishment.
  • IT staff efficiency has increased 30% without the stress and overhead of managing on-premise IT infrastructure.
  • Penguin Computing retired three servers with its move to cloud ERP, saving money as well as time for IT personnel.
  • Cloud architecture and SuiteCloud Development Platform for customizations and third-party integrations gives Penguin flexibility in evolving the business.

Challenges

  • Business users had poor visibility into data in the cumbersome SAP R/3 system, relying on IT for report generation and troubleshooting.
  • Penguin was forced to resort to costly third-party consultants to maintain the aging system, implemented in the early 2000s.
  • The company began exploring its options when SAP announced it would be ending support for the SAP R/3 4.6D version in place.

Solution

  • NetSuite was the only cloud ERP vendor to meet Penguin’s requirements for simplicity, rich functionality, ease of use and a robust API for customization.
  • Integration between NetSuite and Penguin’s Salesforce.com CRM instance, which had not been integrated with SAP, gives Penguin sales reps greater automation and visibility.
  • Rapid three-month self-implementation with assistance from NetSuite Professional Services helped Penguin Computing accelerate time to value from cloud ERP.

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