Residentia Group is a leading supplier of electrical appliances to retailers throughout Australia, including Bing Lee, Betta Electrical and Buyrite Group. It’s carved out a strong position in the marketplace; its turnover tripled in its second year of existence, and has doubled in successive years since.
System slowing the business down
Residentia started out with a user-friendly, cloud-based system. Xero handled the financial management and an add-on called Unleashed controlled the inventory. However, Residentia’s rapid growth soon overtook the system’s capabilities.
“Xero’s performance in terms of speed was really slowing down at peak times,” says Nathan. “For instance, we might want to process about 500 invoices all at once and it couldn’t cope. Also there was a discrepancy in the way that Unleashed and Xero valued stock – each system would deliver a different figure.”
The discrepancies between Finance and Inventory meant staff were often working outside the system on spreadsheets. Residentia’s warehouses nationwide are managed by a third-party logistics firm, and handling orders via email brought the risk of errors, which might not be detected for some weeks.
Payment reconciliations were another laborious task and some of Residentia’s larger customers wanted it to switch to electronic data interchange (EDI) trading – a difficult prospect with those separate systems.
"We wanted to be at the forefront of EDI."
Integrated ERP in the cloud
Residentia brought in a systems consultant to review its ERP requirements. Microsoft Dynamics NAV and SAP Business One were both considered and SAP was close to getting the nod before the MYOB Partner suggested MYOB Advanced.
“It ticked more boxes for us than any of the other systems we looked at, being a true cloud-based system that was already set up for Australian payroll.”
“We could also see that it had the capacity to handle future growth,” says Nathan.
Electronic trading delivers major efficiencies
Residentia’s customers and suppliers are now connected electronically. Automation of processes brings major savings in time and paperwork; statements can be set up to run automatically and formatted to suit each customer.
“That EDI integration is a huge benefit for us,” Nathan says. ”Netstock is another big positive for inventory management because we’re truly able to forecast our requirements and see where we’ve got too much stock.”
Advanced’s reporting capabilities deliver live information for a proper view of the supply chain, customisable for individual needs.
The cloud-based system is accessible from anywhere and a mobility application is a big time-saver for the back-office, allowing sales reps to file their expenses claims remotely. Advanced’s total integration also enables smooth handling of foreign currency transactions.
Residentia doesn’t stand still; it has plans to expand into the New Zealand and UK markets, and is looking to establish a sourcing office in Asia. Advanced’s ability to handle multiple businesses and branches will bring further benefits as the business continues to grow.
"Advanced’s data visibility is vastly better and the graphic displays are very helpful."
Before MYOB Advanced Business
After MYOB Advanced Business
System slow at crucial times
Too much manual labour
Limited stock visibility
Errors in orders
Pressure to adopt electronic trading
Manual processes automated
Inventory control streamlined
Live data for everyone
Cloud system accessible anywhere