Scaling CPG Brands on NetSuite

00:05Hello and thank you for joining us. I am Melissa Travers, director of community here at BevNet and I'm so thrilled to welcome you to the Nambbas podcast. Don't forget to check out nonbase.com, BevNet's platform built for the CPG community. That's also where you can catch episodes of the Nonbase podcast. Today we are talking to Brandon Lennert, VP of finance at Lemon Perfect, Neha Soi, SVP of operations at BERO, and Vivian Keena, CEO of Luxent to discuss how fast growing CPG brands can scale more efficiently by putting the right systems in place early.

00:42So implementing an ERP like NetSuite might seem daunting or even premature, but it can be a crucial move. As distribution grows and velocity increases, operations need to keep up. Today, we're going to talk about how Lemon Perfect and BERO approached that challenge, what prompted their decision to invest in an ERP, and why they chose to use a partner like Luxent to help avoid common growing pains. Well, thank you so much Brandon, Neha, and Vivian for joining today. Let's just start off with a quick round of introductions so our audience gets to know you.

01:19Neha, um, please, uh, we please give us an introduction first. >> Thank you so much for having me. Really excited to be here and have this conversation. I'm Neha Soi, SVP of operations at BERO. Um, and really excited to jump in. I have a unique background because I also was SVP of operations at Lemon Perfect. So got to spend some time on both sides um and learn a lot through the process and um build the supply chain up for BERO and we made some really unique decisions based on the learnings that we had at lemon perfect.

01:47So excited to jump into that. >> Thank you. Uh Brandon, you are at Lemon Perfect yourself. >> Yes. So nice to be here as well. Uh Brandon Lennert, VP of finance, Lemon Perfect. I've been here actually five years. Um just at my fiveyear mark. uh Neha actually interviewed me before that five-year mark when I or you know when I before I even started a long time ago and even before that I had known Vivian and Luxent when I was at my private previous company at Soilent Nutrition um another beverage brand so they helped us out there and uh so yeah I've known the people on this call quite some time >> Vivian great to have you here you're going to give us some of the nitty-gritty details on how to use um an ERP like NetSuite and how to implement.

02:35Um, thanks for joining us. >> Yeah, thank you. So excited and thank you both for being willing to participate in this. Um, excited to have the opportunity to work with you guys um on this podcast and thank you for inviting us. Um, I'm Vivian Keena. I'm the uh president and CEO of Luxent. >> Excellent. So, let's start off this story with you Neha because you were at Lemon Perfect. you're now at BERO and we sort of have a um tale of two brands here with two different growth stories. Can you set us up and help us understand what was going on at Lemon Perfect when you first joined and and when was that?

03:15>> Yeah, so I joined pretty early on. I want to say it was employee number seven. Um and we really built the team up and built the sales up and when we started we were doing everything out of Excel. Um my background is corporate. Um, Lemon Perfect was my first startup. Yanni took a chance on me. I was forever grateful. Um, and it was really cool. But I walked in and I was like, "We're doing everything on Excel. Is that how we do this?" Like it was very different coming from big corporate. Um, and as we scale things move fast as everyone knows and beverage, we realized very quickly we needed a system.

03:48Um, I think at lemon perfect we were figuring things out very much so. It was also co it was a really interesting time. So NetSuite and a sophisticated ERP system didn't feel achievable in the early days and so we went with um a much smaller ERP system to help support the operations side of the business. We also didn't link with finance. Um so finance ran on QuickBooks which Brandon can talk more about and we kind of had a separate operations business and we did that for a while. It wasn't until we scaled and hit probably year four where we certainly felt like okay supply chain was getting extremely complicated and complex finance was getting complicated.

04:26we were starting to do multiple transactions and multiple co-ackers um a very sophisticated raw material supply chain and we needed more and that's when we started to look at what type of ERPs could really support us and we did a robust RFP etc and got to NetSuite and we can talk a little bit more about how we got there but um that was kind of the lemon perfect story and and how we got to what I would say is the right sophisticated ERP system to support the next growth phase and scale of the business.

04:52When I got to BERO, I was really lucky. I was employee number two or three, depending on who you ask. Um, and I had a really unique opportunity to build the supply chain truly from the ground up. And with that opportunity came such a responsibility to make the right decisions. And I had learned so much from Lemon Perfect. And I kind of thought to myself, which is very unconventional, but I was like, why don't we just start with NetSuite? Why go through the pain of transitioning all these different systems?

05:17And every time we did that, we broke the system. It was so stressful on the supply chain. Why not start from ground zero with that? The only thing holding us back, there was two things. One was the cost, cost and implementation, how we were going to do that because we we couldn't do it ourselves. I knew that we needed a partner. And two was were we going to constrain ourselves too much because when you're at a startup, as we all know, we're just trying to get things going and we're moving as quickly as we can.

05:41Um I called Vivian. I said, "Hey, I have this crazy idea. Is this even an option? Could we start with NetSuite? I have a really small budget. is it something we can do? And she said, "Let me think about it." Yeah, I think so. And that's kind of how the conversation started. So, what was unique about BERO is we started with a sophisticated ERP from day one. Um, and I think that was a game-changing decision for us. And I I think if people can do it, it's 100% the right thing to do from a supply chain operations and finance side.

06:11>> Great background. Um, I want to hear a little bit more about Lemon Perfect. So you were So you went from spreadsheets to then running things off of a small ERP system for ops and then QuickBooks for finance and those two things didn't talk to each other. What was what was the scale of Lemon Perfect at that time? Maybe in you know say Doors or um like can you give us a picture of of what size Lemon Perfect was when you brought on that smaller ERP? >> Brandon, it's about when you started, right?

06:42Year two. >> Yeah. I probably talk revenue more than doors, but >> yeah, we yeah, we talk revenue a lot. When I when I first joined that first they were coming off a $300,000 year and then that first year of 2020 did about three million. Um and that's that's when you put in that small ERP and then QuickBooks was already in place and then you know fast forward a little bit you know perfect did 12 million that next year. um we were still on the QuickBooks and ERP and then as we scaled to 27 million the year after that that's when we were like okay um we need something else right um I'm probably jumping ahead a little bit but I again I was coming off of NetSuite from Soilent and I always knew in the back of my mind because QuickBooks was already in place when I joined Lemon Perfect like hey at some point we're going to need NetSuite right like that was always my solution um but I just it was always trying to figure out the right time to implement and like I said when you get to 27 million on pace for the next year being around 50.

07:35We're like, "Okay, you know, we can't just keep doing, you know, fulfilling our our our orders on our own." And at the time also, I was a oneman show in finance. Uh I I finally hired somebody who who's still here with me today. And I wouldn't be I couldn't do it without her. But um we also couldn't do it without NetSuite, right? Because it was just too difficult to literally be fulfilling and invoicing in QuickBooks and then also sending emails to the you know, customers and it was just getting to be too much.

08:01out. Um, but yeah, I mean to answer the question, you know, 3 million where you need something and then on our side and then once we got to like the 20s, we're like, hey, this is just not sustainable if we're going to keep growing. >> So, you came Oh, sorry. Go ahead. >> I was say I'll say we fumbled a little bit too. We we had a small ARP and then we tried to do a custom solution which we thought would be great that we could integrate a demand planning platform and we could really sophisticate our supply chain and like Brandon said at 27 million that was the time like there was a lot going on.

08:28Um ultimately if I could have done it again I would have gone straight to NetSuite and like he said like he had already known that we would end up at NetSuite. I think we were trying to understand the cost of what that would look like um how we would implement it and I wish we would have just asked the questions. I think we just felt like it was such a behemoth that we didn't even take a chance. We thought okay we'll go to one other middle tier and then we'll get to you know where we should be with next.

08:52We know we need to end up there. And I think that's where we kind of broke the mold with BERO where we were like you know what no we're going to start from it. why I go through all that pain. Um, and so I think to add that is like we stumbled through that that we have since learned and I think both landed in NetSuite and it's been great >> and it was painful right because it was hard to get your time because you guys were in growth mode. So it was hard to get you in in a room to set up and configure a system at the same time of you know growing the company leaps and bounds.

09:21So it was it was just like a real balance. Um yeah, >> Brandon, you mentioned that you knew you would go to NetSuite at some point. Um because you had worked with it before. How did you know it was just something you knew that you wanted to implement? >> Yeah, I mean going back even before I was at Soilent, I was at a company called Beachbody where um the the workout company. They're still around. I still use them. Uh they're great. But um they had when I was there we'd implemented Oracle and this was kind of before NetSuite was was really I think it existed but it wasn't as big as it was now.

09:54So I had seen Oracle and I knew that that was like you never want to go to somewhere that that big unless you're a huge company and even Beachbody probably didn't need it at that point. They were um you know not they were big but not massive, right? And so then at Soilent it just worked so well there and I had such good experience. Of course we did RFP there and I several times a month. I'm even at Soilent, even when we had NetSuite and even early on at at Lemon Perfect, you're getting inbounds from all these different ERPs, right?

10:26And it's like there's just so many different ones and they might work, but everyone plugs into NetSuite. It works so so smoothly. I'd used it before. Um I knew that it I knew that it worked. We'd used Luxent before and we had that experience. And so I'm like, if it works for 90% of other companies our size, like why we should just go that route. And it it just felt it just felt right. Um than trying to like, you know, and we did try like Neha said, we looked at some other ones. Um but I think in the back of my mind, it was just it just made sense to go with what everyone else is using.

10:59>> Certainly, you know, Vivian from Luxent, you're gonna um you're going to shed a bunch of light on how and why people implement ERPs like NetSuite. Um, but just for, you know, maybe for myself and for our audience, when thinking about implementing an ERP like NetSuite, is it almost like you wouldn't install your own engine in a car? Like, is it just unheard of to even try to install to set it up yourself and implement it yourself? >> I think I think companies understand their business, right? But they don't understand the technology that's going in and they they just need to rely on a partner that they can trust and that they can really guide them.

11:34Um, you know, Luxent's been implementing for the food and beverage industry for 15 years and we've had hundreds of clients in that industry. So, we're, you know, we know we know their pain points. We we can introduce some best practices. We can tell them what other companies are doing from a reporting from a structural perspective. So, it's it's it's it makes that whole process more efficient. And like you know, Brandon said, his time was so limited. Neha Neha's time was so limited when they were growing that, you know, you really had to to really understand their business, get to know their business, and really just, you know, use your time wisely.

12:09So having a partner that can help guide them, they could trust was really important. >> NetSuite has so many options, and I think that's what's such an advantage, but navigating through those options is so challenging. And I think in both instances, for me, I was in a different place in the business with LP than I am for BERO. I needed someone to help me navigate on like what do I actually need and like with LP like what do we need at this time and what could we turn on quickly to help support and I think you know like we know our supply chain is going to change how can we set it up now to know that the supply chain is going to change whereas a BERO it was like a blank slate so how do we keep this as blank as possible so I think having someone to help you guide through that is essential um because you know I have a team that's experienced in NetSuite and we still um needed so much guidance and still do today we ask questions almost really >> and it's important not to overengineer.

12:59So I think the big thing companies tend to do is buy too much or you know overengineer and when you're in startup mode or when you're in the first few years you just have to be flexible. You just have to be able to change and flex as a company is moving really quickly. Co-ac uh co-ackers are changing 3 I mean everything is changing constantly. So you just got to be able to work with a partner who can support that change for you and kind of have your back. Um, I think that's what we really focus on.

13:28>> And Vivian, Luxent specializes in CPG businesses. Is there is there a huge difference in how CPG businesses might use it versus other industries? >> Oh, I mean, so NetSuite, the the gift of it is it's, you know, able to be used by many many industries. the the the the negative is that it has lots of functionality that you have to really able to know that function that that industry to be able to tailor it to that industry and and get rid of the noise. Get rid of the functionality that's not relevant to you and make it simple for those users.

14:01So it's not overwhelming for them day-to-day so that they can streamline their operations and use it effectively. So you really do need a partner that is in that industry to not come out with a system that is just overly complex and not you know easy to adopt for the users and the team. Um I think it's it's probably the most I think having the partner is almost more important than the software. It's like having the partner to actually get you and guide you through the the through the whole process.

14:32>> You need to know that it works for your business, >> right? Yeah. Yeah. to be able to make it work effectively. >> Neha and Brandon, Vivian just mentioned that Luxent can kind of help brands identify their their pain points and then adjust the way that the software is set up so that they particularly address those issues. What were some of the issues that Lemon Perfect was having when you switched over to NetSuite from that smaller ERP? Um like what were some of the things that were going on falling through the cracks?

15:02Neha, do you want to start first? Sure. Yeah. Um there was kind of a lot, you know, I think that system was great for the phase that we were in, but we were starting to see like inventory wasn't as accurate. Transfer, there was like glitches in the system. So transfers weren't going through accurately or lot codes were getting missed because like the system had some sort of glitch, which like NetSuite doesn't have that. And that's a that's a huge part of what we're doing, especially in food and beverage.

15:27And so we started to see a lot of this. And I remember Colin Gates who was running operations for us um at the time on my team was like this isn't working like we have to get to NetSuite because we're losing visibility and that was kind of the the critical point for us at that point. We also knew that our operations was changing. We had two co-ackers at the time. We were moving to a model where we were going to a singular co-acker. So there was a lot that was happening that needed to reflect in the system.

15:50The other piece that we haven't really touched on is kind of automation and EDI. And so we knew we needed to get to a place where we got that and NetSuite allowed for that. And so I think from an operations standpoint, those were the pieces where we were like, okay, this is the time and these are the the things that NetSuite can solve for us. Um, and with the help of Luxent, we were able to do that. I think me just thinking about it, it was so overwhelming. I was like, I don't know how I'm going to do this all.

16:15How are we going to get EDI connected? What is the system going to look like? we're changing the whole model of our co-ackers, what is that going to look like? But to have the support of the system and then Lexen helping us every step of the way, that that really helped. And I don't know, Brandon, I'll let you kind of touch on the finance side of things because there was a lot happening there as well. >> Yeah, I mean, no, you you nailed most of it. Um, just the fact that the systems weren't talking in between the finance and the ops piece was was the biggest challenge and I kind of touched on that in the beginning in terms of >> having to kind of fulfill our own sales orders then make the invoices because nothing nothing was talking.

16:50Um, so that that was the biggest thing for me. But yeah, I mean I just remember tons of brainstorming sessions early on which is which is great. like they spent Luxent spent so much time um understanding the system and also being flexible with us because there's so many times where we had to run the business like like was saying putting out fires and uh having to reschedule last minute. We always felt bad, but it's like, well, if we don't run the business, we're not going to have a need for NetSuite in the near future, right?

17:17So, we got to we got to get through this first. And so, they were they were great. Um, and able honestly, the people there were able to look at themselves sometimes and say, "Okay, well, I could, you know, we give them access to our systems. I'll just take a look at it for you. Don't worry about this meeting. I'll look at awesome questions, but I'll look at how you're doing AP right now just by looking at QuickBooks." And just understanding all that was was was amazing early on to allow us to to get through some of those times.

17:42I think one of the other pain points that you mentioned that it addressed was being able to have real- time inventory visibility, which certainly is a huge thing. Can you explain how that works and how it worked before you had a system that could show you versus after? >> I think the difference, and we're kind of going through this now, too, like systems are systems and they're going to be as accurate as as the data that you put into it, I think. Right. And so when there was glitches in our old system, that's where we lost visibility.

18:11Um with NetSuite, you don't see glitches. It's really the onus is on you to make sure that things are talking. And I think um to be able to have that real time visibility is so critical often for a meeting, for scenario planning, for cash flow planning. I mean, there's just like so many instances where you need to know that inventory. Um the other piece of it is that through NetSuite there are so many automations that you can do and APIs that you can do and we're exploring this now at BERO because we started with NetSuite we have the bandwidth to start putting together all these APIs and start getting things more automated at the system.

18:47So we have even more realtime inventory than I've ever had because we're able to get it direct from our 3PLs. So I think NetSuite simplifies that because they typically most places have an interface directly with NetSuite and so you're not starting from the ground up and so that I think is a really key piece to to just understanding your supply chain and being able to set up your dashboards and there's a lot of opportunity in NetSuite to be able to use it to your advantage. >> This might seem like a little bit of a basic question, but when you can see all of the inventory that you have, how does that change your decision- making?

19:18Like what decisions does that what decisions did that does that change? >> I mean I can take this one Brandon then you can add to it because I think it hits both ops and finance. But obviously if you can see all your inventory for us it changes what's our production look like? What's the forecast? How are we consuming against it? >> What's our cash flow? Right? Why are we seeing this much? Are we not sitting on enough? What does that look like? What's our safety stock? Um what's the strategy behind that?

19:44are we going to run tight right now because of the seasonality and then we're going to run late or do we have promos coming up so it just allows you to have those conversations and I think it's incredibly critical and I will say I think most ops teams can put that together I think the difference is that NetSuite allows you to do it so much faster right if you're not you're you're going to five different systems putting it together putting this peacemail spreadsheet together and and in NetSuite the reporting capability allows you to pull it quickly and I think that's what's really key >> I think you bring Such a good point.

20:14So the first one is like it was so daunting to to look at getting this implemented and just make you know having a partner to help you get that and and assist you through that process um made it less daunting. Um and specifically when you came to me with a very very small budget, it was like you know we had to figure out how to scale everything back and and implement a little bit more creatively um to to meet the budget but we did it. Um, but I I I felt like the second thing on on just being able to make good decisions really really fast.

20:48It's such an easy way to justify, you know, everybody kind of comes to us and goes, "How can I justify the system?" And it's really about just all the information that you can get out of it so quickly. I mean, um, you know, the the automation and ability to to be able to automate through your whole process versus doing manual processes is really helps in the justification of it. um early on. Early on I mean Neha did not have to hire a significantly a lot more employees um because because she had that automation early.

21:20>> Yeah. And I think the unique thing about having it early and I think this was our challenge at LP was that when you have it early, you can build processes around NetSuite and the system so that you're starting from day one around what those processes are and those best practices. at LP because we had different systems in place and then we transitioned like Brandon said we're going from 27 to 50 million so we're scaling rapidly and we're also trying to break and recreate our processes and that's really tough and I think that for me was kind of the largest pain point of like oh my gosh I can't do that again because that was really really hard to have to re-recate all those processes and get used to the system and then trying to do things outside the system and then replicate in the system and etc.

22:01So I think one of the advantages of doing it early if you can is that you really start to build the processes around the system and that's a that's a huge win. >> Yeah, that is a good point. Yeah, >> it almost seems like the the most effective I mean, we're talking about this, but like the most effective time to start is when you're early and really as a super early stage brand, an ERP like NetSuite is probably the most helpful because you have such limited time and resources that you need to make every second count.

22:30Not that you don't as a growing brand, as an a later stage brand, but in those early days, every single second counts. Vivian, how do emerging brands be, you know, be how can they approach using an ERP like NetSuite? Certainly, I know cost is one of the the issues that I think a lot of brands have in mind is a reason why they put it off, but what's the reality of being a very emerging brand and using a piece of software like NetSuite that, you know, you all at Luxent would help implement? I think the most important thing was, you know, we sat down and laid out a plan that really limited the use.

23:09I mean, made it really simple for them to use because the biggest nervousness Neha had was we we can't have this be complex. We can't have all this functionality in place. So, it's limiting us to do the job I needed to get done. She really wanted it to like this is all we need now. and we kept it very scaled back and and she took on you know we we gave her the infrastructure and she let us help her significantly with this con the configuration and then she just took it over. So then it was more of you know we didn't have that back and forth um meetings where it's a lot of consulting time to discuss every every part of the system because really they were very simple right they were they were building it from scratch so they they could take a best practices approach um they could make it simple so I think they leaned on us a lot to kind of lay out that initial configuration based on our expertise and then we were able to go from there so it really made the implementation cost significantly less.

24:07Um, and then we just work to get them a hell of a deal on the software. So, so, um, >> and I'd love for it to be the standard. I honestly think if if NetSuite and Luxent, we can work towards making that the standard so that all emerging brands can do something like this. I think we're changing food. >> I agree. >> Truly. >> Yeah. And that's what she said at the beginning. She goes, I think I need to build a model for all brands. I need to build a model of implementing because it can't be complex.

24:33It has to be simple. It has to be cost effective. We have to build something that you could take to the market and do this for other brands because this isn't it doesn't stop with Barrow. It's you know this is something you need to move forward with. Um so and it worked. So yeah, here we are. >> Here we are. >> I do. >> Just to underline what you both said. Um, so there's certainly the NetSuite that enterprise companies use that is incredibly um, you know, certainly costly, but that's not what necessarily what emerging brands would be looking at because they're looking at a different version of it.

25:07They're going to be using it differently. So a startup brand, maybe they have, you know, five 10 users. They're going to be looking at a much different cost than what you might be thinking about for brands who are way later stage. Right. >> Absolutely. I you know NetSuite's packaged for everyone. They're they're you know they have the startup packaging and then they have the enterprise packaging. Um I think it's a misnomer that it can't hit the enterprise because it can definitely support the enterprise companies just as well as that that smart that small startup.

25:37Um, so I, you know, I I I think there's a model for everyone, but it's really important that the implementation costs sometimes get expensive, and that's where we really really try to control the implementation and the tailoring um, so that it worked for them. >> Yeah, it's that upfront cost that's like a one-time lumpsum that typically tends to be expensive. And that's where as a startup, you really don't have that. And I didn't have that. So, I said, "How can we figure this out? How do we create a long-term agreement because I know I'm going to need help down the line.

26:07I know my business is going to scale. So, what does that look like? Um, and that's where we were able to really find a good marriage in that. >> And Vivine, is that a conversation that other emerging brands could have with the Lent team as well? >> Welcome that. >> Yeah, I would welcome that. And you know, it's it's really a partnership, right? So, um, and we were we invested in in Barrow and in the long-term partnership and growth of them. um in addition to just working with them to to make sure it was working.

26:37You know, we put in a package that that worked for them for for the size they were. So, um I think that's just important. I mean, um just like Lemon Perfect. I mean, with Lemon Perfect, um the biggest piece of them was you didn't have the financial connection. You didn't have all that visibility. So, you were at a different scale. And it was so much harder for us because they were so busy. And the people you need are the people in this are the people that are the the busiest in the company. So, and and they're limited on their time.

27:08So, it's, you know, the the sooner you can get an an ERP in, you know, I would recommend you do it. >> And just for any folks listening out there, um, for any brands who want to get in touch with you or the Luxent team, is there an email address or a website we should point them to? I just feel like >> um and definitely reach out to me directly through LinkedIn or you can go vivian luxent.com please. Um um and we can definitely give you a a a quote or just just pricing even if it's not into the future.

27:40I mean sometimes people are looking two or three years out to to take a look for budgeting perspective and just really want to get an idea. Um we have demos once a month. Um you can come and attend one of our demos. They're live. um you can come and just take a look at the software um and um you know see see what uh it can do for you. >> Even just having a conversation as a thought partner on how complicated would my business be in NetSuite. I think sometimes that helps too, right? with Lemon Perfect.

28:07I think some of the initial conversations we had were like how big of a project is this like how complicated and then with BERO obviously it was a little bit different but similar thought partnership on how how could we approach this and I think that could be a huge just step one for other brands. Brandon, um you're you as the uh the VP of finance, I'm sure that you have a a careful eye on um how something like how an ERP like NetSuite balances out headcount and you know sort of creates other cost efficiencies.

28:40Can you talk a little bit about sort of the the expense of an ERP because with Luxent it sounds like the implementation and using it is easy. So it the um the cost of the software itself is probably the biggest stumbling block. Can you talk can you talk a little bit about how those things are offset? Yeah, I mean candidly we got, you know, Luxent did a great job with us and the ongoing the ongoing cost is I don't I don't want to say it's minimal, but it's like I it's not even like noticeable on the day-to-day because we've gotten bigger and um we've kind of kept the scale back.

29:16Not I don't want to say not scale back like burrow, but like we gotten exactly what we needed and we haven't had to add anything. And so like there's a quarterly cost that just comes out of my bank. I'm like, "Oh, this just it's not it's not that big is the bottom line." So that that bar is great. There is the upfront cost implementation the implementation of course that was a few years ago. So I don't want to say I forgot about it but it's such a some cost at this point that uh and and it's working great.

29:41Um and then the ongoing support we get from Luxent is is also great and it's been very costefficient for us as well. So um that answers part of the question in terms of the headcount though. I mean, yeah, we've been able to get away with uh myself and one other full-time person in accounting for the last well, since the start, right? It was just me for a while. Then I I hired Sarah. She's been with me for I don't know, it's almost four years, I feel like. And uh NetSuite just allows you to keep it lean.

30:07That's always been the motto here. It's like, hey, if you need to hire another salesperson or another finance person, like what's going to drive the business more, right? having another person to do invoicing or if we could get away with doing that because it's so efficient now and we could hire two more ASMs like that's that's the way to go right so um again two people I I don't want to say it's strictly two people because it is technically in finance now I have support we have you know BI um and even the supply chain team it's like an extension of the finance team we call it um but at at the end of the day I have not had to hire more strict accountants to just go through the day-to-day transactions cuz And this just makes it so simple.

30:47>> And on the topic of cost efficiencies, I think you mentioned that using an ERP allows you to plug in systems that help track things like chargebacks, for example. >> Chargebacks, you could do that. Um, we we just got a a new chargeback company to help us out there. Credit card has been great. We use Ramp to plug them a little bit and that just plugs right in with NetSuite. You don't have to do anything. It's it's amazing. Um, we use bill.com and we've used it forever. Um, also great. It's just super seamless.

31:18Um, there were there were some implementation uh things that the Luxent team had to deal with. I remember that was a big challenge up front, but they were able to get through it and now it's just it all works perfect. So, I mean, again, to be able to run a 50 to, you know, hopefully get to hundred million dollars here in the next 12 months um with two people and the ARAP is is pretty incredible with the with the power in NetSuite. You were also talking a little bit about how having a sighteline to all of your pieces of business help with with um staying nimble.

31:48So I think Lemon Perfect was going through a bottle resize and being able to see exactly what was happening in every part of your business. Can you helped you with that? Can you explain that? >> Yeah, we it was like the perfect storm when we were trying to implement NetSuite because they you know Luxent and team would be like well how's this going to look? I'm like, well, do you want to do you want the answer right now or when we go live in three months because the answer is going to be different?

32:13Um, and so it was a little bit of a a challenge to go through and and look into the future. The good news is we kind of went uh we we went from like having to procure all the ingredients to go into turnkey. And so it was actually it was an easier flip. If it was going from turnkey to the other way, it probably would have been more challenging obviously. Um, but yeah, there were there was a lot of questions that had to be answered. The bottle change was a big challenge, but they like I said, we had to like almost dualpurpose a lot of these um implementation pieces of NetSuite, so it would work both ways.

32:45Um and another example is going from like Amazon 3P to 1P, right? Like we didn't want to spend too much time going down the 3P path because we knew we were going to go to 1 P at some point. So we were able to come up with the stop gap solution that got us through the some upload template that we still use to this day for the minimal amount that's still going through 3P but by next month it's going to be gone and now it's all it's all one piece. So there's a lot of things that um again couldn't have done it ourselves but with the help of implementation team and the ongoing support we're able to those changes were able to kind of just flow through seamlessly.

33:22Certainly staying nimble uh can't be possible without the right funding to do it and this is another example of how an ERP can help prime you for those kinds of deals. They have what's your experience been so far using an ERP like NetSuite and starting to you know having and starting to have those conversations with the investment community. >> You know I think it it sets you apart a little bit. I think it shows that you have a more sophisticated supply chain and finance operation and that you're thinking ahead.

33:52And so I will say once we started to talk about NetSuite, we had a path to get there. I think our investor community who was wonderful at LP was really supportive of it and excited about that next step. And I think at BERO it was really interesting because I think it definitely set us apart. And so I think you know at first there were questions of do you really need that? And then as we started to navigate and push through and and um communicate why I think it really did set us apart and it's been a really unique um positioning and has been one of our assets go forward.

34:19So um I just yeah I think it's it's well known across the industry um and I think investors respect it and I think that's a huge win. >> And does it also kind of help you understand exactly how much you need to raise and win? Because if you can raise the right amount of money in the right amount of time, that certainly changes your opportunities and your trajectory to to success, right? >> Yeah. I think it allows for you to have those financial analytics and Brandon could probably talk a little bit more about that, but I know on our side we we manage all our P&Ls through NetSuite and so it allows us to do a lot of scenario planning, pull things quickly and figure out what that's going to look like, model things out.

34:58And so I think for us starting from day one, it actually helped because it allowed us to have more sophisticated conversations around that and help our co-uh CEO and co-founder around um some of those conversations as he's quickly having u to answer questions etc as he's um raising. Brandon, when I think about investors, um, I think about them asking the question of projections. And when I think about projections, I mean, everyone I know their chest tightens up and it's like it's just such a difficult thing to be able to predict.

35:30Is does that get any easier when you're using an ERP like NetSuite? >> I mean, the the ERP is not going to tell you what your revenue is going to be next month or next year. So it's it's from that perspective uh that's always going to be a challenge and uh but but no I mean of course having the historical financials that you know look at the seasonality you know looking at um the you looking at by customer by by um by channel and all that stuff um I have been able to of course pull all that out of NetSuite um and then to be candid we don't use the projection models in NetSuite as much as we probably should um I still kind of pull it out But having all that data at your fingertips and be able to pull, you know, by customer, but how many bottles or how many cases we sold three years ago in, you know, July, then look at it, you know, fast forward is a huge help.

36:25No question. >> Excellent. >> I think the models in NetSuite can sometimes be challenging when you're a fast growing brand. And I think it's important to kind of state that that the technology is in there and it's great when we're, you know, year 15 and there's consistent historic, but like as Brandon said with LP and their growth story, like we doubled every year. And so that if not more and so to be able to mimic that in a system, it's not likely that they're going to mimic that. You're not going to put a 50% or 70% increase on your sales.

36:53And so I think being able to use the data that he said like you can pull out, but also having an understanding of the reality of what your business looks like and mirroring those together I think um is what's really important. >> Vivian, it sounds like the hardest thing about using NetSuite is implementing it, but certainly not with a partner like Luxent. What are some of the biggest mistakes that you see brands use when they're implementing something like NetSuite? Well, I think I think they underestimate the the the task at hand, right?

37:23They they food and beverage companies are complex and they're sophisticated and they have a lot of need and and it's important to get the quality and the the tracking and you know, I mean, all of those pieces in place so that they can run efficiently. I think I think when they first start out they you know they're trying to run a lot of this stuff in a manual mode and I think that's where they underestimate the the task at hand. So I think that's one of the biggest mistakes. Um and then in just in just planning uh when when if they're going to implement an ERP, I think the biggest recommendation would be, you know, plan ahead, understand what you want in phase one.

38:03You know, keep it simple and just work with a partner that really can can guide you through through the process because I think it does make a big difference. >> How long does it usually take to implement or does it totally depend on the business? >> It definitely depends on the business. I think what did we take? We took two months, three months on BERO. I mean, so it just depends on the the business and the team and the the availability. Um, Lemon Perfect is a little bit longer um because I was pulling at them to get their attention.

38:38Um, but um I think I think it just depends on the team and and you know their goals and what they need. Sometimes sometimes they're you know it's usually a three to six month time frame though. Neha was talking about how she brought on NetSuite early on because of her experience at lemon perfect and then you know your corporate experience before that. So we know that bringing it on early is the ideal. Is there a point where I mean there can't be a point where it's too late because enterprise businesses they you know so many of them use NetSuite but like is there a point where you really should just make the jump if you're at a certain you know number of dollars in revenue like what's that point where if you're a business and you know you're going to need something bigger like when do you really need to make the transition?

39:29>> Wow. I think, you know, we've been saying all along you should make it as early as you can, but I, you know, I think you see so many companies out there just struggling with all those manual processes in place and just not having, you know, today, you know, you just know you're not going to be able to say keep competitive, right? I mean, you have to stay on a product like a NetSuite product to stay competitive and move forward um and be and have the flexibility and platform so you can integrate to all these great other solutions that you want.

39:58So you can change as as AI comes out and new technology is available. So I I think you know every year NetSuite comes out with hundreds and hundreds of new features and functions based on um the their their new release schedule. And um and these companies get to take advantage of that because they're on the right platform. So, I I I don't I don't know if it's ever that it's too late. Um, for sure, but I just think there's a lot of companies out there that that need a system that could truly benefit from a product like Neste.

40:30>> From an off standpoint, I would probably say two things. One would be as you bring on multiple co-ackers, I think that's where you start to truly see complexity. And I think being able to manage that >> clear easy fashion um is probably where I would say it's kind of essential. Um the other piece I would say is 15 to 20 million I think and Brandon you may or may not agree with me but I think that's kind of where things start to get complicated move fast and having that synergy and that process I think is really critical.

41:02>> Yeah. Just too many transactions at that point where it's just too you can't you can't continue to do manual processes. I think the 20 20 million is about right. >> Ben, there's too many transactions. You got to do it before. >> I mean, I am a believer of day one. I fully believe that. But if you really did have to push it out, I would say >> you have to get there >> to answer the question. But yeah, I really you need something though. I don't think doing Excel between now and then is the right way either.

41:25So I think that's where that whole comes back to is if you're going to do something anyways, put your time into one thing that you can use for the longevity. >> Yeah. Well, I think at this point all the brands out there are feeling like this would be an excellent thing to at least explore right now, no matter what their size. In closing, I'd love to hear from each of you. What's the most important thing that brands out there should know before implementing an ERP? Vivian, let's start with you. >> I I I think it's really just finding a partner you can trust.

41:55buying a partner who understands your industry, who has been in the game for a long time, um who has examples of companies that are working with them and you know the customers that we have stay with us, they stay with us for the time that they're on NetSuite. So um we have that longevity and we we work with them and grow with them. So just just find that that right partner who you can grow with. Brandon. >> Uh, yeah. I mean, Vivian said it. You got to find the right partner who for sure knows the industry and who's not going to oversell you on on something that you don't necessarily need.

42:29Um, and then two, you got to make sure um you can make the time to do the implementation. Like you could you could push stuff out, you could you might have a move meeting, but you still at some point you have to make the time to go through it with the team and to really, you know, get into the nitty-gritty to to make sure that it's done right. It'll save you time later on. Neha, how about you? >> I mean, I echo a lot of what they say. I think one, finding the right partner to be able to find the right model for you, right?

42:57And I think I did that in both cases um with different situations, but also making sure it's a priority across the organization, right? Everyone has to understand it and buy into it. And I think that's really critical and I was fortunate in both incidents to have support from the CEOs and understand the importance of it. And so I think if you can sell that across the organization as well as make sure you have the right partner, then you're set up for success. >> Excellent advice. Thank you so much, Brandon Lennert, Neha Soi, and Vivian Keena.

43:23Thank you so much for joining us. We all learned so much. And go to luxant.com if you're thinking about implementing an ERP or you just want to have a discussion to find out what it might look like down the line. So, thank you all so much for joining the non-base podcast and everybody else who is listening and watching. Thank you for joining. Make sure you go to nonbase.com and we will see you next time. That concludes another episode of the Nonbase podcast.

43:58Many thanks to Nate Brussa, our recording engineer, Ryan Galang, our live stream coordinator, and Josh Pratt, our podcast editor. If you enjoyed the show, please leave us a review and follow us on your listening platform of choice. Want to be part of a live recording? Register at nonbase.com/mpodcast to join the conversation. You can also watch and listen to past episodes on nonbase.com. And don't forget to join our nonbase Slack at slack.bnet.com for company updates, industry networking, and community discussions.

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