Case Study: Hotels and Leisure

MYOB Exo Case Studies

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Nippy's

"We must have saved 20 hours a week alone handling our distribution process.”

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We’re big on manufacturing. Just ask Nippy’s Juices.

 

At MYOB we understand the many complexities, problems and pains of growing a manufacturing business. We also know that for every problem there’s a smart software solution. Discover how we enabled Nippy’s Juices to squeeze more efficiencies and productivity out of the business, improve workflow management, processes and supply chain, helping make their business one of South Australia’s most successful.

 

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Background

 

Talk to just about anyone about fresh juice and the name Nippy’s comes to mind. Founded in the Riverland of South Australia in the early 1930s, Nippy’s is one of those great Australian companies still doing what it does best – delivering fresh produce to the people of Australia. Last year, Nippy’s produced and delivered over 10 million bottles of fresh juice around Australia.

 

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The Problem 

Existing software was putting the squeeze on growth

 

For several years, Nippy's had been using two accounting systems side by side. These systems worked but Nippy's simply outgrew the pair of them. They needed data to be readily available across the business, not just at the top, and their existing systems couldn't manage that.

 

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The Solution

Introduce some ‘big picture’ thinking

 

Enter MYOB Exo with functionality tailored to their specific needs, including advanced reporting capabilities, multiple access, distribution work flows, good stock control and bill of materials. As a result, Nippy’s was able to simplify many processes. like being able track deliveries, payments and reimbursements for all of their self-employed distributors who deliver juice all over Australia. A complicated and time consuming task is now simple, saving time and helping to improve the bottom line.

 

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The Outcome 

All the data in one place

 

The real value for Nippy’s has been the consolidation of the group’s operations into one financial package. Nippy’s now have all their vital information in one place. This means anybody at Nippy’s can dip into the system and pull out what they need, whenever they need it, having a profound effect on how information on sales and stock is shared around the business. Also, the ability to access information centrally has totally transformed the workflow at Nippy’s while access to up-to-date information has revolutionised stock keeping and reporting.

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Summary

Before

• Two accounting systems that couldn't talk to each other

• Lots of manual information inputting for deliveries

• Critical information in separate silos

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After

• Consolidated financials and seamless integration company-wide

• Data workload has been reduced by 20-plus hours a week

• Clear insight into all areas of our business all

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Daiwa Food

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"Where other systems would have struggled to integrate, MYOB EXO sits happily alongside."

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Implementation success story, almost overnight

 

With the rise in popularity of Japanese cuisine, Daiwa Food Corporation is now recognised as one of the major importers and distributors of Japanese food for the retail, catering and hospitality industries across Victoria. Daiwa has experienced such growth in recent years that in 2006, it opened a second office in Wingfield in South Australia. However, with a huge range of customers and an extensive warehouse, managing the sales, stock and resupply of literally thousands of products is an enormous task.

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The Problem

Desperately seeking a replacement

 

Daiwa had been using 2Clix for general stock management. Under the weight of their increasing stock list however, the system was struggling to return timely and up-to-date information on what was in the warehouse. There were a number of other issues too, according to Vicky Li, Daiwa’s System Administrator, not least of which was that 2Clix didn’t easily integrate with Daiwa’s existing accounting software. And that meant unnecessary duplication.

 

In the end, it was the sudden expiry of Daiwa’s licence that put an end to the relationship with 2Clix. Daiwa found themselves having to find an integrated stock management and general accounting system that would feed them genuine business intelligence and speed up the overall sales order process, all in a matter of weeks.

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The Solution

Entrusting your business to a safe pair of hands

 

Daiwa’s Director, Charles Pai, first heard about MYOB Exo Business from a colleague. He decided to investigate things further and called MYOB. “We got the feeling MYOB Exo might be the product for us,” says Li. “They really took the time to get to know what it was we wanted out of MYOB Exo, which was a great comfort, given that we had some quite specific requirements.”

 

“They really took the time to get to know what it was we wanted out of MYOB Exo.”

 

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Introducing MYOB Exo on a “play station”

 

User acceptance testing (UAT) is key to the approach. Using a trial database, or as Li refers to it, “our playstation.” An environment was created where users could familiarise themselves with the software and experience MYOB Exo’s functionality and usability first hand.

 

Aside from being a valuable training tool, UAT is a critical part of the discussion process. It gives staff an opportunity to verify that MYOB Exo has been configured to their requirements, the chance to gather feedback and modify the system accordingly.

 

“The trial version really made a difference to us,” says Li. “And because we’d used it to iron out most of the issues, implementation was relatively simple – for us at least!” The basic installation was completed in two days.

 

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Other important influences

 

In the early weeks, Li says MYOB Exo took a bit of getting used to, at least for some staff. “Because I’ve got a background in IT, I took to it straight away. But for others less used to computer systems, the learning curve was steeper.”

 

Three months down the line, it’s a different story. Now that everybody understands how MYOB Exo works, they’re “really happy with it”, according to Li – so much so that they’ve now bought a number of additional licences. “Even relatively small features are noticeable by comparison,” she adds. “We can run a Google-type search on all our stock which makes finding a single product less like looking for a needle in a haystack.”

 

MYOB Exo’s reports have really made a difference too, according to Li. “Because you can pinpoint almost any area of the business for closer scrutiny, certain reports have really helped us get a better understanding of the nuts and bolts of our organisation. They’ve shown us areas that need attention and areas that are performing really rather well.”

 

“You can pinpoint almost any area of the business for closer scrutiny.”

 

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Building a pantry list

 

MYOB Exo’s benefit to Daiwa is not just in its standalone capabilities. Its compatibility with third party software means that users aren’t forced into an all-or-nothing scenario. Instead, information from MYOB Exo’s database can be disseminated around the organisation and accessed in a number of different ways.

 

Nowhere is this better illustrated than in the use of Symphony. Symphony is Daiwa’s pride and joy sales and ordering system – a system that plays a key role in upholding Daiwa’s customer service commitments. It works by building likely shopping lists for each of Daiwa’s customers based on their previous sales history. Because, nine times out of ten, customers order the same products, all the telesales operators have to do once they’re on the phone is key in the required number of items alongside the list. The process saves them – and the customers – countless hours on the phone.

 

So where does MYOB Exo fit in to this? Well, it’s from MYOB Exo’s database that Symphony gets its customers’ sales history. And it’s through MYOB Exo that stock is requested from the warehouse. “Where other systems would have struggled to integrate, MYOB Exo sits happily alongside. Of course there was some tweaking required, but in practice the benefits are there for all to see,” says Li.

 

“Where other systems would have struggled to integrate, MYOB Exo sits happily alongside.”

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“Ultimately, MYOB Exo’s about control. It’s about showing you the business and giving you the intelligence to make informed decisions. “That,” says Li, “gives us a real edge over our competitors."

 

“That gives us a real edge over our competitors.”

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The Outcome 

Clearer costing, minute to minute

 

For Daiwa, the biggest improvement they’ve seen from MYOB Exo is in regard to costing. “When we were running 2Clix, accounting and inventory were two disconnected processes. But with MYOB Exo, we can have both integrated into a single database and that means we can track stock and costs as one workflow.

 

“It means our information on costs is absolutely up to the minute – we don’t have to make adjustments based on inaccurate stock levels,” continues Li. MYOB Exo has also improved Daiwa’s costing accuracy by allowing them to factor in exchange rate fluctuations.

 

“We have a lot of overseas suppliers so exchange rate fluctuations can sometimes alter costs quite substantially. By knowing what our true costs are, we can factor in those fluctuations on a daily basis and spread the impact a little more evenly.” Li says Daiwa now has much better visibility on debtors too and, where necessary, the ability to put a stop on credit at the touch of a button.

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Summary

 

Before 

• Existing system was struggling to return timely and up-to-date information on what was in the warehouse

• The existing system didn’t easily integrate with current accounting software which caused duplication

• Needed a system that provided genuine business intelligence and speed up the overall sales order process.

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After

• Better understanding of the nuts and bolts of the organisation

• Information from MYOB Exo’s database can be disseminated around the organisation and accessed in different ways

• Integrated into a single database means stock and costs can be tracked as one workflow 

• Information on costs is absolutely up to the minute

• Improvements to Daiwa’s costing accuracy by allowing them to factor in exchange rate fluctuations

• Increased visibility on debtors too.

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Koshi Sushi

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"MYOB Exo helps us reduce waste and labour expenses, and so keep our prices competitive."

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EXO Puts sushi business on a roll

 

Koshi Sushi started in 1998 when its present owners saw an opportunity to tap into a growing market for healthy convenience food. A successful manufacturing and distribution business, Koshi Sushi supplies packaged sushi products to cafes, restaurants and hotels across Victoria, Canberra and New South Wales. Although they have no retail outlets, Koshi Sushi is one of the largest sushi makers in Melbourne, using a semi-automated production system capable of producing over 20,000 pieces of sushi daily. Koshi Sushi employs more than 30 staff and has a customer base of around 400 active accounts.

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The Problem

Integration a top priority

 

When Koshi Sushi’s present owners took over in 2009, it was using two business systems: a basic MYOB accounting package and a piece of proprietary software developed for the company, which consolidated the daily orders so production staff would know how much of each product they had to make.

 

“We had an Access database in the background to get our bill of materials based on all the ingredients,” explains Managing Director, Terry Riadis. “From its information we could tell how much rice we had to cook and the other ingredients we had to prepare, then how to package them for each customer.

 

“Double entry of data became a major concern for us as our sales doubled and then doubled again. The orders had to be keyed into the proprietary software and then again into MYOB so we could do our invoicing. The workload and the risk of errors were getting too high. Also, I couldn’t get the reports I needed to make key decisions. It took me hours of manual spreadsheet work to get the KPIs I wanted to measure. That’s when I decided to look for a system that could integrate invoicing, accounting and production.”

 

“It took me hours of manual spreadsheet work to get the KPIs I wanted to measure.”

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The Solution

Choosing MYOB Exo

 

“At the time I went looking for an integrated system I didn’t know Exo existed,” Riadis continues. “It was by chance that our accountant mentioned it to me, and recommended that I contact their MYOB Exo partner to do a demonstration. We found that what Exo can do is great value for money compared to other packages on offer.”

 

Exo’s easy adaptability was another bonus; a customisation gave Koshi the ability to enter in the sales, then take all the information from those orders and consolidate them, so it knows what it has to make, the quantities, and who’s placed the orders. Details of delivery runs, which used to be on a separate spreadsheet, have also been integrated into the system. Koshi is now able to report and calculate on three levels: ingredients, items, and products. “Combining Exo’s flexibility and sophistication with our experience of customers who have recurring orders, we feel we can offer the service, production and manufacturing sectors a range of options to deliver major benefits.”

 

MYOB Exo Employer Service was also purchased by Koshi Sushi, enabling the direct posting of payroll details to the General Ledger – eliminating another error risk.

 

“What Exo can do is great value for money compared to other packages on offer.

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The Outcome

Everything in one place

 

Koshi Sushi now has all its information in one database, which has halved entry time, and with it the risk of errors. Exo gives production staff the information they need to fill their orders, eliminating the need for manual calculations.

 

From Terry’s point of view, those hours spent manipulating spreadsheets to monitor business performance are history.

 

“I can instantly get information to help me measure and control certain KPIs and control financial performance better,” he says. “I can measure on a daily, weekly or monthly basis. This visibility has improved our productivity.

 

“MYOB Exo helps us reduce waste and labour expenses, and so keep our prices competitive. For the future we’re planning to add new product lines, and we’re confident we have a flexible, fully integrated business to handle further growth, it’s a one-stop shop.”

 

“MYOB Exo helps us reduce waste and labour expenses, and so keep our prices competitive.

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Summary

Before

• Lack of visibility hampered decision-making.

• Getting reports was a time-consuming process.

• Double entry brought heavy workload and risk of errors.

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After

• Better control of costs means prices stay competitive

• Reports easy to generate, providing visibility of KPIs across the business

• Flexibility gained in filling regular orders and last-minute changes

• All data now available on the spot from one place

• Double entry eliminated, halving administration work

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Juicy Isle

 

Giving Juicy Isle the flexibility and power to grow

 

Managing a multi-million dollar manufacturing empire is no easy task. Flexibility, power and the ability to access data whenever it’s required are key. Juicy Isle didn’t have those capabilities until it switched over to MYOB EXO. Now, with the possibility of giving access to multiple users, a stable platform, flexible data and powerful warehouse management means the company can manage distribution and deliver products far and wide.

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Summary

Before

• Unstable platform causing delays

• Limited number of users allowed on platform

• Inflexible data sources

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After

• Stable, powerful platform gives consistency

• Multiple users allowed to access EXO at one time

• Flexible and powerful data provides greater insights