YoY revenue grows by 29% with streamlined NetSuite data
With a successful NetSuite implementation and ORBA’s Cloud CFO dedicated accounting team, Young Nails has real-time insight into its financial reporting and sales channel profitability.
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You should book a free consultation if:
- You have big inventory management needs.
- Your NetSuite implementation didn’t go as planned.
- You feel like you’re still missing a piece of your financial picture.
- You have multiple entities and need consolidated financials.
- You want better insight into your best sales channels and customer profitability.
Business Overview
Run by the dynamic Salo brothers and respected for its next-level product innovation and education, Young Nails Inc., is a professional nail care manufacturing company exporting to more than 40 countries worldwide and distributing domestically to 3,000+ stores. But, CEO Habib Salo clarifies, “[W]hat we really do is teach nail professionals or anyone who’s passionate about nails, how to be successful with nails.”
Industry: Health & Beauty
BAckground
Having had four controllers in four years, Young Nails was struggling to hire a financial professional with the right mix of experience and a willingness to dig into the details, “because of our growth finding someone with the right expertise was a challenge.” In 2018, Young Nails began to shift their model from selling to large distributors to individual salons. As a result, they were experiencing smaller orders but additional order volume.
“One of the biggest struggles, especially in the finance department, is finding someone who is not only competent, but also who you can trust. Because of our growth, finding someone with the right expertise was a challenge.”
Challenges
Financial Reporting
Without a consistent finance team, Young Nails was behind in financial reporting, and therefore, without tangible insights into the profitability of their sales channels.
Inventory Management
A shift in model meant a greater need for inventory discernment and an entirely new e-commerce solution. Young Nails had no real-time inventory data and was scrambling to get product in time to sell it; or worse, running out of stock resulting in lost sales. Stemming from the same issue, they were also unaware of how much lost profits were due to reshipping damaged or missing product.
Solution Framework
Financial Reporting
ORBA’s Cloud CFO services provides Young Nails with a dedicated team of financial professionals, proactive reporting and weekly check-ins and monthly meetings
Inventory Management
ORBA’s Cloud CFO team tackled the inventory issues, providing a smooth transition to an omnichannel solution- implementing NetSuite and procuring numerous integrations that work with the robust ERP system.
Results
With regular access to ORBA’s Cloud CFO team, Young Nails has real-time insight into financial reporting and sales channel profitability. Sales revenue experienced a 29% increase comparing 2018 to 2019 YTD and has continued to grow YoY. Salo elaborates, “we now know this is where we are and where we’re headed.”
Figure 1. From 2018 to 2019 YTD, Young Nails experienced a 29% increase in sales revenue with excellent forecasts to continue sales growth through the remainder of 2019.
Figure 2. From 2018 to 2021, Young Nails continued to experience YoY revenue growth using NetSuite accounting services
Young Nails’ shift in model shaped a need for an entirely new omnichannel ecommerce solution, in this case BigCommerce, integrated with Celigo for NetSuite. By implementing RF-SMART for NetSuite, Young Nails gained cloud access to a barcoding scanner solution and accurate inventory data. Combined with the EDI solution, SPS Commerce, Young Nails can now operate knowing that they can service customers while adhering to EDI best practices, providing opportunity to focus on business growth.
When Salo explained to a third party who had implemented the Netsuite system, “they were shocked. They said it’s probably one of the best go-lives they’d seen, ‘it’s not supposed to go this smoothly.'”
Knowing that our [finances] are getting done better than ever is a big deal. "Now data is accessible. To drive growth- especially for our marketing efforts- having data is not an option, it's an absolute necessity."
Forward Thinking
What’s next for the dynamic brother duo and their cosmetic enterprise?
Given their new ERP solution in NetSuite, combined with the Cloud CFO Strategy Sessions, Young Nails is positioned to hit their revenue goal by driving growth with new access to real-time data. Young Nails plans to fine tune that inventory insight to fuel marketing campaigns to move specific product and offer value to their customers. Salo says, “having that data is not an option, it’s an absolute necessity.”