Danielle Tarp

Oracle NetSuite Corporate Communications

NetSuite cloud computing platform helps save fresh produce group approximately $1 million per year

NetSuite Enables On-Time Delivery of Quality Produce Across FPG's Global Enterprise; Net Profit Margin Increases 100%

SAN MATEO, Calif. and Sydney, Australia—October 19, 2009—NetSuite Inc. (NYSE: N), a leading vendor of cloud computing business management software suites, today announced that Sydney-based Fresh Produce Group has increased its net profit margin by 100 percent in the first 18 months of its implementation of NetSuite ERP, helping the company save approximately $1 million per year.

NetSuite replaced multiple software systems including a DOS-based financial system, which was actively used by only a handful of accounting staff, and Excel spreadsheets which were used to compile forecasting and inventory.

The Fresh Produce Group (FPG), which sources and delivers the best fruit and vegetables on offer from around the world, has grown quickly into one of Australia's largest and most innovative fresh produce providers. To continue its success, FPG recognised the need for a solid platform from which to manage all its activities – from the farm packing shed through to logistics and on to the customer. The common goal of all partners in the FPG chain is on-time delivery of quality produce.

Tasked with improving the systems and processes of a high revenue, low margin business, Fresh Produce Group Director Leon Condon said: "It is critical in the perishable produce industry to be able to know all attributes of our stock in real-time. We were looking for visibility and control leading to improved profitability.We had to become a technologically advanced business."

FPG selected NetSuite to provide timely reporting, more accurate data, and to give staff the tools to be accountable in their roles. "NetSuite has contributed significantly to our business," Condon said. "After 18 months FPG's net profit margin has improved by 100 percent.  It has helped identify and eliminate overhead expenses, which is saving approximately $1 million per year."

Because many of the FPG team work away from an office environment, the organization required an Internet-based, Software as a Service (SaaS) model for ‘anytime and anywhere' access.

The Group's farmers, traders and managers use a range of devices to access the business so the mobility and accessibility of the NetSuite system is critical to maximizing the benefits from its implementation.

"With NetSuite we were able to deploy rapidly and then customise to our liking as we gained visibility and understanding of our business.  Rapid deployment also meant faster access to the information we needed to start making changes and getting returns."

Measurement of staff activities, processes, stock and trading performance are essential to FPG. "What gets measured gets done, gets changed, gets improved," Condon said.

Seventy of FPG's 100 employees are licensed on the system and can now see the business end-to-end, in real-time and play their part in providing better decision making.

The NetSuite dashboard functionality has been progressively implemented and FPG now runs a scoreboard for the whole group, down to individual KPIs. The workflow collaboration tool means that everyone upstream now has full knowledge of the impact of their actions on downstream colleagues.

"Our NetSuite technology platform has been reviewed by an independent party who has confirmed that it is giving us a significant advantage and sets us up for growth.  It's paid for itself several times over," Condon said.

NetSuite's Managing Director Chris Schafer said: "This example is very significant proof of what astute business managers are able to achieve through a partnership with NetSuite. The end-to-end visibility allows managers to take confident control of their operations."


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About Fresh Produce Group
With offices in Australia and Asia, and a network that spans from farms in California to restaurants in Sydney and supermarkets in Thailand, the Fresh Produce Group grows,
sources and distributes quality fresh produce worldwide.

Fresh Produce Group includes 5 key divisions: Imports, Exports, Domestic, Wholesale and Services.


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