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Acumatica Distribution Case Study

NuvoH2O Cuts Software Costs 69% With Acumatica

Software Costs Cut 69% in the First Year

How NuvoH2O moved from Oracle NetSuite to Acumatica Distribution Edition and nearly doubled its transactions with the same headcount.

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About NuvoH2O

A Salt-Free Water Softening Company in Salt Lake City

NuvoH2O sells salt-free water softening and filtration systems on its own website, on Amazon and in major retail chains such as Home Depot and Lowe's. A wholesale channel serves plumbing professionals and smaller retailers, and the company supplies built-in filtration systems to the RV industry. Its subscription service for replacement cartridges brings in a significant share of revenue.

Industry
Distribution, retail and manufacturing
Products
Salt-free water softening and filtration systems
Location
Salt Lake City, Utah
Employees
10 to 50
Revenue
$10M to $50M
Platform
Acumatica Distribution Edition
Integrations
BigCommerce, Amazon Connector, SPS Commerce
System replaced
Oracle NetSuite

At a Glance

Lower Costs, Faster Shipping

Results NuvoH2O reported after moving to Acumatica Distribution Edition.

69%
Lower Software Costs in Year One
3.1%
IT Costs as a Share of Sales, Down From 6.2%
4x
Revenue Shipped per Day
6-8%
Lower Shipping Costs

The Challenge

New Sales Channels on an Over-Customized ERP

As NuvoH2O added sales channels, its previous ERP fell behind. The system was costly and so heavily customized that its reports conflicted, and the company kept a dedicated team of system experts just to keep it running.

In the warehouse, there was no barcoding. Stock was counted and recorded by hand, products went unaccounted for, and write-offs were frequent. Reconciliations slowed order fulfillment and dragged out the month-end close.

NuvoH2O needed accurate inventory and reliable reporting on an affordable system its own team could run.

Conflicting reports

Heavy customization produced reports the team could not rely on.

IT for basic tasks

Even routine work depended on a dedicated team of system experts.

Counts done by hand

Items were counted and recorded manually, with no barcode scanning.

Shortages and overstock

Missing products and write-offs kept stock swinging between too little and too much.

The Solution

What Acumatica Distribution Edition Changed

NuvoH2O evaluated QuickBooks, Microsoft Dynamics and Acumatica. It chose Acumatica for its inventory control, reporting and open API, and because it could be configured without heavy customization. The rollout took six months.

  1. Barcode scanning and lot control

    Warehouse staff scan the item and lot they pull, so the team sees what is on hand and what it will need. Acumatica also creates serial numbers and calculates landed costs automatically. Inventory counts that were done by hand now finish in a single day.

  2. Ecommerce, Amazon and EDI on one platform

    The BigCommerce storefront connects to Acumatica financials, inventory, operations and reporting, and Acumatica connects directly with Amazon. Several of NuvoH2O’s largest customers require EDI, which now runs through SPS Commerce. About 65% of NuvoH2O’s business is now done online.

  3. Cartridge subscriptions on autoship

    Customers manage their own replacement cartridge subscriptions through the BigCommerce connection. Autoship renewals run without manual work.

  4. Shipping and fulfillment

    Flexible shipping options give customers more fulfillment choices, and better carrier selection cut shipping costs by 6 to 8%. Daily revenue shipped has quadrupled.

  5. Reporting from live data

    Real-time data replaced conflicting reports and manual reconciliations. Finance pulls numbers straight from Acumatica and spends its time on decisions. Month-end close now takes five to seven days, down from 10 to 15.

  6. A system the team runs itself

    NuvoH2O no longer depends on a large IT staff. IT costs fell from 6.2% to 3.1% of net sales. Software costs dropped 69% in the first year.

The Result

One Platform for Every Sales Channel

NuvoH2O has almost doubled its business and transactions with the same headcount. It runs everything from ecommerce and order entry to financial reporting in Acumatica, and it is now expanding its channels and launching affiliate programs.

Finance

Real-time reporting and a shorter month-end close.

Warehouse

Barcode scanning, lot control and one-day inventory counts.

Ecommerce

BigCommerce, Amazon and SPS Commerce EDI connected to Acumatica.

Customers

CRM, case management and self-managed cartridge subscriptions.

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