NetSuite optimization delivers ROI for fuel pipeline and terminal networks
Overview
Optimization projects are crucial for companies that own and operate extensive networks of fuel pipelines and terminals. These projects help address operational inefficiencies, streamline processes and integrate systems to enhance overall performance.
Background
A leading provider of fuel transportation and storage services in the United States owns and operates an extensive network of fuel pipelines and terminals that supply major hub airports and rapidly growing urban areas. The company is committed to ensuring the efficient and reliable delivery of fuel to meet the increasing demands of their customers.
The company faced several operational challenges within their NetSuite enterprise resource planning (ERP) system, including:
Outdated processes and inefficient workflows
Lack of integration between systems
Delays and increased costs
Reduced overall efficiency
Project
The company worked with RSM US LLP to optimize their NetSuite ERP platform and enhance their business operations. Changes included:
System and integrations - Integrated SuiteAnalytics with NetSuite and Microsoft Power BI for enhanced data analytics and reporting.
Purchase orders and vendors - Revamped purchase order and vendor approval workflows to meet the company's requirements.
Accounts receivable - Customized AR aging reports to exclude child invoices and expand as needed based on the company's requirements.
Record-to-report - Built customized financial reports and provided training to meet future report needs.
Procure-to-pay - Revised the procurement process to incorporate items on purchase orders and update workflows.
The optimization project provided a significant return on investment through various improvements, including:
- Cost savings: Streamlined processes and improved workflows have reduced administrative and operational costs.
- Efficiency gains: Enhanced system integrations and customized reports enable faster decision making and reduced cycle times.
- Improved cash flow: Better financial reporting and AR management have improved cash flow and reduced DSO.
- A strategic advantage: Improved data visibility and decision-making capabilities provide a strategic advantage in a competitive market.
In addition, the long-term benefits of the optimization project include:
- Sustained efficiency: Achieving continual improvement in operational efficiency through ongoing process optimization and system integration
- Scalability: Enhancing the ability to scale operations to meet growing demand without compromising efficiency or incurring increased costs
- Employee empowerment: Empowering employees with better tools and training, resulting in increased productivity and job satisfaction
- Competitive edge: Maintaining a competitive edge in the market by leveraging advanced analytics and reporting capabilities to inform strategic decision making
Outcomes
By following the optimization roadmap, the company successfully addressed their operational challenges. The integration of SuiteAnalytics and Power BI improved data visibility and decision making, while the revamped approval workflows and streamlined processes led to increased efficiency and reduced costs. Customized reports and enhanced training empowered the company's team to manage operations more effectively.
The success of this project demonstrates the significant ROI that companies operating fuel pipeline and terminal networks can achieve through optimization initiatives. By addressing operational inefficiencies, streamlining processes and integrating systems, the company achieved substantial improvements in efficiency, cost reduction and overall performance. The collaboration between the company and RSM resulted in a comprehensive optimization roadmap that provided a clear path for continual improvement, enabling the company to remain a leader in fuel transportation and storage services.