“The big challenge that we’re going to face was change management and so for us, it was, again, talking to people about that, why are we doing this. We’re doing it, ultimately from a business point of view, but also to help our people and to make our people more efficient, to ensure that they’re able to carry out those basic transactions in a more efficient manner, and also with the benefit of helping us grow and onboard new clients into the business more quickly”.
“I can drill down into individual transactions. I can see exactly what’s going on. I can see ahead of time potential issues which I wouldn’t be able to see before. So before, we’ve been reactionary. Now, we’re proactive. So I can see, as we’re travelling through the month, exactly how we’re performing”.
– Bruce Fitzgerald, CEO, Extel Technologies.
Today’s episode is part three of a series of six interviews recorded at the Oracle CloudWorld and SuiteWorld conferences, which were held in Las Vegas in September 2024. I encourage you to subscribe and add them all to your playlist!
In this episode, I speak with Bruce Fitzgerald, CEO of Extel Technologies, a NetSuite customer. Bruce is keenly focused on systematising processes, implementing technology, and developing people now to meet the growing demands of competitive manufacturing.
We discuss:
- The selection process and the decision to implement NetSuite
- The NetSuite rollout, and the importance of change management.
- The benefits of attending the Oracle NetSuite industry networking events, and learnings from other clients in this space.
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Don’t miss the details at the end of this blog to learn more about Earmark CPE. Now, let’s dive into this episode! 🎧
Scroll down for a full transcript
This transcript has been generated and transcribed by AI.
Can you share with our listeners what your business does and what your role is?
Bruce:
Sure, Extel Technologies designs and manufactures electronics for various industries from defense to medical to industrial communications, etc. So quite a vast array of products. Originally, 33 years ago, was an OEM designing and manufacturing telecommunications equipment. The industry changed. We had to then reinvent ourselves, and that’s when we become a contract manufacturer for our clients. So we’re actually now designing and building products on behalf of our extensive client base. They own the IP, but we manufacture the product on their behalf.
Heather:
Well, thank you so much for being a manufacturer. We need so many more manufacturers in Australia.
Bruce:
Totally agree.
Heather:
So thank you for actually doing that. I think it should be really appreciated what you’re doing.
Can you describe the decision to implement NetSuite, how it came about, and what were the key business challenges you were looking to solve?
Bruce:
Yeah, good question. So back in 2019, we’re running with an existing ERP system, and had been for probably about 20 years. We felt that the system wasn’t able to be scaled in the way that the business was looking for we’re very much focused on growth from a organic and also acquisition point of view. So thought we’d go to market, went to market, narrowed it down, and then ultimately made the decision on Oracle NetSuite. We implemented that in January of 2020, so exciting time for us. But key driver for us was in and around, having a system that all employees could interact with all day every day. Our previous system wasn’t able to do that. You know, you needed to be a super user or somebody that had exceptional skills to write reports, etc. Where NetSuite is not is not built that way. It certainly allows and empowers all of our people to take control of what they do day to day and fully understand what their role is within the business. So it really gives those people autonomy to do their role, and also allows people throughout the business to connect easily on the same platform. So we’ve obviously got one source of the truth, one system, and everybody interacts with that all day, every day. So that was a key driver for what we did. And also a key one for us was that often, when you’re talking, you know, ERP platforms, etc, they can be quite complex. And we’ve got a, you know, a myriad of different skills throughout the business, from, you know, highly educated technical engineers down to, you know, shop floor operators, warehouse people, etc, and you need to cater for all those different skills. So NetSuite really is an intuitive platform that that is role based, and then once you’re in your role and understand what your basic functionality is, it is quite intuitive to work your way through. So from that point of view, that was really important as well.
Heather:
I love that you’ve explained that people can work at all different levels through the solution. And it really sounds like you took it on board and empowered your staff to be able to do what they needed to do, which gives them a lot of job satisfaction.
Bruce:
Yeah, I think so. I think taking people on the journey is really important. We engaged our team right throughout the business very early on in the process, when we had decided and selected NetSuite, we had them involved in a lot of different user groups, even before, well before we went live, just to give them a sense of what the system was about and what it was the benefits would bring. And the big one for us is why we were doing it so and really explaining to the team what was behind that. You know, we weren’t just changing a system for the change at sake of changing a system, we’re doing it to, again, empower those people and also help grow the business. So it was a big, big strategy of what we’re about.
Heather:
So you chose, interestingly, the month of January, to do an implementation. So typically in Australia, and maybe I’m speaking from an accountant’s perspective, January’s a very quiet month. I don’t know what it’s like in manufacturing.
Was that January implementation a purposeful decision?
Bruce:
Yeah, it was. It actually was a purposeful decision. I think we all decided we wouldn’t take Christmas holidays that year and that we would all have a large team working over the Christmas break. We do as a manufacturer in Australia, and as you would probably be well aware, Heather, often we try and have a close down at Christmas. And so we would traditionally close for 10 to 12 days over that period. We took that as an opportunity to to shut the facility, prepare everything back of house and be ready to go live. I think it was about the sixth of January, if I recall. So just being ready and prepared and yes, having that team work over the Christmas period seemed to make sense without potentially causing interruption to our clients, etc. So that was important as well.
Heather:
It’s a good strategy for people to hear and actually think about rolling out themselves. So going live, January 2020 must have been a significant transformation for your company, as well as what happened then, sort of march 2020.
Bruce:
Yes.
How did you manage the implementation? What were some of the hurdles you kind of faced along the way? And how did you deal with that?
Bruce:
Yeah, how we handled it was, what was really important, was that we’re a direct customer for Oracle NetSuite. So Oracle had their own project team working on the implementation. We also had our own internal project team, so where we’re quite sophisticated as as a team when it comes to ERP, given that we’ve used ERPs for best part of 30 years. So we have a lot of subject matter experts within the business. So we then harnessed an internal team to run and drive the project throughout, and then in close consultation with, obviously, the Oracle Team. The key for us was, I think, as I said earlier, was just getting all parts of the business involved, so getting key players from each department, whether it be stores, whether it be planning, whether it be procurement, whether it be our program team, our sales team, having key people involved, and getting them involved in the whole scope of work process, making sure that was well documented and signed off and communicated, you know, thoroughly throughout the business and then and then getting into it. So we were a business, and Oracle probably had their preferred way of implementing and that was, we run the systems in tandem our old system with Oracle. We weren’t for that. We wanted to cut over and, you know, I suppose, go at tough and, you know, get into it, and which is what we did. So we turned off our old system, turned on Oracle that next day. And then obviously, you know, work through some of those challenges. And there were obviously challenges that there was, there was some, you know, workflows, etc, that maybe weren’t working the way that we had anticipated, and we’d been through all the testing. So there’s a lot of testing that’s done beforehand, you know, months and months of transactions that we we trialed. Then ultimately, when you go live, things can crop up and and they do. So for us, was really about making sure that our team stayed close to the Oracle Team, and they were able to then get those things rectified quickly and making sure that our team weren’t becoming too frustrated with maybe some of the interruptions. But the big one is and, and credit to the again, to the Oracle NetSuite team. They really called out early days. The big challenge that we’re going to face was change management and so for us, it was, again, talking to people about that, why are we doing this. We’re doing it, ultimately from a business point of view, but also to help our people and to make our people more efficient, to ensure that they’re able to to carry out those basic transactions in a more efficient manner, and also with the benefit of helping us grow and onboard new clients into the business more quickly. So they were the keys as to what we were trying to achieve as an organisation, and then obviously our overall overall growth. So that’s been a big part of it.
How many staff do you have in the organisation?
Bruce:
Currently, there’s 120.
Heather:
Okay, and so, you know, that was really smart, and I imagine it is part of the change management role, which is the humans.
Bruce:
Yeah.
Heather:
It’s like the biggest issue is not an issue, but the biggest thing that we need to do is talking to the humans.
Bruce:
Well, they, you know, the team had a system that been operating for 18-20, years, and all of a sudden we’re saying, we’re going to take that out, I’m going to put something new in. And that’s always going to be a huge cultural shock, because that’s all most of the people had known within the business. So, you know, something we took very seriously is something we’re very keen to take that step forward. And again, we needed that scalable solution, and that was, you know, explaining to the team as to why we’re doing what we’re doing. And you know, if we jump forward a number of years, you know, we’ve now acquired a business and rolled that into NetSuite as well, under the one law banner. So you know, people within the business understand what our strategy was and why we were doing it.
Heather:
Absolutely.
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What improvements in operational efficiency and financial visibility did you experience post-implementation?
Bruce:
Yeah, on the on the operational efficiency side, as a manufacturer, and we have some 25,000 SKUs of components that we have within our stores, warehousing facility. We manufacture some two and a half to 3000 products. Transactions, the number of transactions on a daily basis is huge. So the biggest one for us was streamlining that process and getting efficiency in and around all of those transactions and and taking people out of that day to day, you know, drudge of, you know, keen transactions, and systemising all that from a workflow point of view. So from an operational point of view, an efficiency point of view, that was a big gain from our overall business point of view. Your other part of your question? Heather.
Heather:
Financial business.
Bruce:
Yeah. Financial, yeah. Financial, yeah. Financial, good one. As I said earlier, I’m not an accountant, but as CEO obviously have a very keen interest in the numbers and for me, the whole dashboard environment within the NetSuite platform really empowers C-suite people to have great visibility. You know, previously, I was reliant on a, you know, a financial controller to provide information to me. I don’t need to now bother that person throughout the day. I can actually do that myself, which some may say is a bit scary and but I’m able to drill down through the GLS. I can drill down in individual transactions. I can see exactly what’s going on. I can see ahead of time potential issues which I wouldn’t be able to see before. So before, we’ve been reactionary. Now we’re proactive. So I can see, as we’re traveling through the month, exactly how we’re performing. I can see the cost build up as to how the month is performing, where before, I just couldn’t see any of that. And that’s all on my dashboard. It’s all real time, up to date. And I can, I can see that as we travel through the month.
Heather:
That must be most exhilarating to be a CEO.
Bruce:
Well, yeah, yeah, it totally is. And like I said, a bit scary, maybe for the CFO. But, you know, I think, well, we are all on the same team. And I think what’s important is that I’m probably not wasting her time anymore in and around a lot of unnecessary questions, because I have the information there on my dashboard. So it’s a big difference.
With the implementation of NetSuite, was it a pure NetSuite solution? Did you have any of the third-party bolt-ons coming into it?
Bruce:
We didn’t start with so purely. And when we took NetSuite, we were all in on all fronts. So we’re talking CRM, we’re talking projects, we’re talking advanced manufacturing, the full ERP side, demand, planning, procurement.
Heather:
You just ticked all the boxes.
Bruce:
We did, obviously. Finance, I think. I covered off CRM. So we’re in all facets of it. So huge project, you know, touching all parts of the business. So that was, yeah, just again, important part of the growth strategy to make sure we had that full solution to deliver what we need for the future.
Heather:
And so that was all NetSuite. It wasn’t any of the third party.
Bruce:
No, there wasn’t to start with and then, more recently. We’re again, been a manufacturer, we’ve now have an industry 4.0 platform where we’ve now fully connected our manufacturing equipment through to NetSuite. So we’re now using soligo, one of NetSuite partners, to obviously make that connection through. So that’s the key, key addition that we’ve got. We were quite strict with the team. In so far as you know, it’s very easy for people to have their favorite toy or their favorite bit of software, a favorite thing they use. We were very, very keen, and we’re quite prescriptive with the team to say we’re investing in NetSuite. It’s going to the single source of truth. If you’re operating systems or processes outside of that…
Heather:
If you’ve got an Excel spreadsheet sitting outside…
Bruce:
We’re not going to believe it, or, you know, we want to see that information created in NetSuite. And so, again, I know that pushed some of the team early days, but what it did is encourage them to then to develop their skills around the report writing within NetSuite. And again, you don’t need to go outside to get a system expert to create a report. The team were able to do that themselves and develop those reports and get confidence in around what they were doing. So again, we really focus on that. And as we grow as an organisation, as we are, as I said, we have certainly become a bit more sophisticated around our manufacturing side, and got that external connections going as well.
As a customer, why do you make the trip to come to NetSuite world conference in Las Vegas every year?
Bruce:
Well, this time of year, it’s the weather’s not great in Melbourne. Living in Melbourne, we’ve just come through winter and into spring, and although the weather is improving, is nice to come over here. But no in all seriousness, for us, and when we were committed early days, and given we have now five years, a five year relationship with our Oracle NetSuite team. For us, it was very much about that partnership, that they are a partner in our business. It’s a very sophisticated, important system that we’ve invested in and invested heavily in, and we need to continue to invest in that. We just didn’t want to to, I suppose, subscribe up front and then forget about it. That’s we just didn’t feel that was going to be the right way to to progress into the future. So, and we’ve made some great friends with the team at Oracle NetSuite. So they’re not just, as I said, they’re not just a supplier of something. They’re actually friends and partners. And to get over here and also network. So for us, particularly being manufacturing, you obviously joked about it at the start with Australian manufacturing is great to see. We like to connect with other manufacturers from around the world. So what’s really important for us is that we network, we understand the challenges and sore points that other manufacturers have, and can we work together, or can we link up in some way to solve those problems? And so we’re keen to build on those relationships and develop globally.
Do they have networking groups for you here?
Bruce:
Yeah, they do. Yeah, they run an industry night where, you know, like minded sort of manufacturers, for instance, can get together. And then we also utilise the networks from the Oracle NetSuite team to obviously, be introduced or connect to other potential of the potential clients that they have that they’re working with. So that’s how we do it.
Heather:
That’s fabulous.
Bruce:
Absolutely.
Heather:
That’s really valuable. I had seen the industry nights, but it didn’t kind of click.
Bruce:
Yes, it’s all casual over a nice drink, but
Heather:
Absolutely.
Bruce:
Certainly good way to connect.
Heather:
I attend a lot of conferences, and sometimes the best takeaways happen in the corridors.
Bruce:
Absolutely.
Heather:
And it’s just this accidental meeting of minds.
Bruce:
Yeah.
Heather:
And it’s also nice to collaborate or learn from someone who’s not necessarily your competition down the road.
Bruce:
Yeah, I agree.
Heather:
Someone who’s not going to be competition, but can still we can learn from each other, and we’re kind of bouncing off each other.
Bruce:
Yeah.
What’s one key takeaway you’ve had from SuiteWorld 2024?
Bruce:
I think the…you know, I was here last year as well. And, you know, certainly was introduced last year was the AI side of where Oracle NetSuite are. And, you know, that was, you know, it was a key understanding. Probably last year, didn’t understand the significance and how that was going to play into the future. And then this year, I think we’re seeing greater visibility as to the benefits and the efficiencies that the AI functionality within NetSuite will generate. So for us, that’s certainly a key and just the ongoing roadmap development they have. I just finished up the keynote this morning. You know, the roadmap they have for the new additions that they continue to develop is incredible, and the you know, they have two releases come out every year with great enhancements. So for us, we’re just looking forward to those continual features coming through with the AI functionality.
Heather:
Fantastic. So thank you so much for your time, Bruce. It’s been really informative listening to you, and I’m sure our listeners will have benefited from it.
How can our listeners potentially get in contact with you?
Bruce:
Can go to our website, Extel Technologies.com. Yeah, obviously reach us through the info email address there, and that will certainly come through to myself and look forward to if I can help anybody, any organisation out there, please reach out.
Heather:
Thank you so much, Bruce. I appreciated it.
Bruce:
Thanks, Heather.
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