How Australian Company Hairhouse Automates Ecommerce and Retail Operations with NetSuite and Integration – Register2020-08-21T18:46:56+00:00

How Hairhouse Automates Ecommerce and Retail Operations with NetSuite and Integration

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Viv Paverd Viv Paverd National ICT Manager
Rico Andrade Rico Andrade VP Marketing

In today’s shifting business environment, ecommerce and retail businesses are looking into optimizing their operations and management processes. Whether they need to work with fewer resources or process an increasing number of orders, automation of manual processes is key for operational efficiency, especially in light of recent events.

Hairhouse is the largest retailer of professional haircare products and employer of hair stylists in Australia, with more than 120 salons nationwide. Viv Paverd, National ICT Manager for Hairhouse with more than 30 years of Information Systems experience will share how Hairhouse leverages integrations between key applications such as Keplers, Shortcuts, PeoplePulse, BazaarVoice, 3PLs, and NetSuite to reduce cost, provide a superior customer experience, and scale.

In this on-demand webinar, we discuss:

  • The importance of automation to drive efficient ecommerce and retail operations
  • Common challenges facing companies trying to sell goods today
  • Prioritization and resourcing
  • Hairhouse’s evolving journey with NetSuite and integration
  • Leveraging integration platforms
  • And more!

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Full Webinar Transcript
Welcome to today’s webinar, how Hairhouse automates eCommerce and retail operations with NetSuite integration. We are honored to have Viv Paverd here from Hairhouse. He’s the national ICT manager. My name is Rico Andrade. I’m the VP of marketing for Celigo. So before we kick off, here is the agenda. We’re going to do a quick introduction to Celigo and then jump right into Hairhouse. So Viv is going to speak about Hairhouse’s business goals, their business challenges, and then we’ll walk through their own integration journey from the beginning. And then actually go into quite a bit of detail on some of those use cases, and share some diagrams on how they’ve done what they’re doing. And for those of you who are not familiar with Celigo, Celigo is an integration platform as a service. We allow you to quickly connect to applications and automate business processes. So as you have different applications across different areas of your supply chain, Celigo is the glue that brings the data from one system to another, automatically does the transformations on the data as needed. And for many customers who use NetSuite, NetSuite tends to be the financial and customer source of truth. And so that means that all the entire organization needs information from NetSuite and needs to send information from NetSuite. And so Celigo, not just with NetSuite, but allows us to make sure that those processes are automated and seamless. So I would like to introduce you to Viv. He’s the Hairhouse national head of ICT, with many years of experience in retail and supply chain IT system implementations, as well as business process improvements. Most recently, he’s been the architect and program manager at the successful Hairhouse NetSuite implementation, including multiple NetSuite modules and customizations using the NetSuite development tools. Hairhouse is currently using NetSuite for most of their enterprise systems, including financials in-store, POS, eCommerce platform, CRM, customer loyalty programs, marketing inventory management, and providing their business with the fully-integrated system environment. And so also Hairhouse is almost exclusively used by the Celigo platform, which he will talk about in detail here to connect mission-critical external systems such as third party logistics facilities and guest providers, [inaudible] scheduling tools, digital marketing product feeds, and more. So it’s an honor to have you here, Viv, and please take it away. Yeah, thanks, Rico. Thank you for having me on. It’s great to be here. I do have a few slides, but I don’t just want to present all of this to you. It’s a bunch of information, really, and you’ll get a copy of the presentation if you need it. But I just really wanted to tell you the story of how we’ve come about our journey with Celigo, and what got us there at the end. So we have been using Celigo for several years now. In fact, we’re probably into our fifth year now. So a very mature user of this legal platform. But let’s just put some context around that for starters. A little bit about Hairhouse is a business, privately-owned, founded by two brothers back in ’92, more than hundreds [inaudible] of stores across Australia. We do retail and salon services, retail being professional hair care products. We were the largest retailer of professional hair care products. No disrespect, but we’re not selling supermarket-grade shampoos and conditioners here. We’re talking about professional hair care products which, typically, your local salon might stock their own preferred brand that they’ve got a license to sell or an arrangement to sell. But we sell pretty much all of the professional brands all in one place. So it’s quite a unique business model from that perspective. And then, of course, salon services, full range of salon services, largest employer of hairstylists in Australia. We’ve got a mix of corporate stores and franchise stores, but it’s primarily franchise. We don’t have corporate stores by plan. It’s not part of our plan. But typically there’s always a handful of stores which get brought back into the franchise or before they transfer on back to the franchisee. So we’ve done a lot of rebranding in recent times. The name used to be Hairhouse Warehouse. So we dropped the warehouse because, well, we’re not a warehouse. We’re an upmarket retailer of professional services and retail products. And that, of course, has also brought a huge focus on our customer service, in-store services, and of course, digital relevancy which today if you’re not in that space, well, you’re not going to last too long. So we move on to the next slide. We have a look– so just in terms of– without going into too much detail because there would be a lot of confidential information. But to the [inaudible] high level, driving our customer loyalty through our loyalty program is key to our success. And as we go through this presentation, I think you will find why. Particularly in a franchise business, this has been so important. So we needed to provide online capability for both B2B and B2C. So B2B being where we onsell bulk products to our franchisees, and of course B2C, customer-facing site. Salon services, as I mentioned– this is a key part of our strategy because people cannot compete with us online. And so this is because it’s all in-store. We do have a large range of home brands which are very popular and a key part of our business. Again, nobody can compete with us on those home brands. So we’ve got a lot of strong, loyal follows in our home brand products. Omnichannel, a nice throwaway term for many things. But omnichannel is essential in the digital world. We have to be able to provide a consistent experience with our customer, whether it be online or in-store. Providing things like Click & Collect, etc. is vitally important in this day to remain relevant from a digital point of view. And by digital, I’m not just talking about online. It’s about the whole marketing, the communication, the messaging, the positioning of our brand across social media and all the other external channels of which there are so many of them. And then of course, finally, the focus on customer service, on actual customer service. It’s nothing quite that gets a customer back in-store or to your online platform if they don’t have a very good customer experience. So customer service is a focus across this business. All right. So if we go to the next slide then let’s just take a little look at where we’re coming from. Over the past years, the increase in online competitors drove us to invest in the online space. Now you [inaudible] moments, it’s logical you have to be in the online space. Well, here’s some background. As a franchisor, if we’ve got an online platform we’re essentially competing with our stores. In other words with our franchisees. And of course, they’re not going to take lightly to that because well, it’s effectively cutting their lunch. And we took a lot of, I say flack, it was problematic because it’s their businesses and we’re affecting it. So, the problem is that if we didn’t do that then somebody else is going to take their business. And there’s lots of players. And over the years these players have increased and they’re competing on price and all sorts of other angles. And there’s lots of them out there. So, if we didn’t do it we’re going to lose their business. So, as a result of which, we came up with a model whereby we start sharing the profit of our online business with the franchisees. And just to give you a snippet of how we do that is the [Salovey?] program which I spoke about. If the customer belongs to a particular store which we track, and their customer buys online that store gets a slice of that revenue. So in other words, it becomes automatic revenue for the business, the franchisee, for them looking after their loyal customers, even if they buy online. Anyway, to move on to that. So this investment put us in a position today where we’ve got a lot of leverage in the market space to be able to move forward with things like click and collect, and there’s a few other initiatives which I’ll talk about in a little while. So, that kind of sets the scene for why we need all these systems and to put them together to provide this level of system integration to our business. So, onto the next slide. This is more of the challenges that we were faced and this goes back to the year 2015 where we had this challenge, we needed to take all of our business functions onto an entirely new systems platform. So we started in 2015, went live in 2016 and it was massive because every single thing needed to intertwine with the other thing. So you’d replace your point of sale but oh, hang on a moment, you need to replace the multi-program at the same time because now you’re dealing with a different system. And you can’t deal with two different systems across– rolling across the business for too long. And it took us nine months to roll out all of the stores onto the new system herein which time you’re running two separate systems, which is a nightmare for managing all of the data and the reporting. Anyway, we rolled out the NetSuite across the entire network, NetSuite, including inventory management, the Ecom platforms, point of sale, the loyalty marketing– loyalty and marketing systems straight into NetSuite and importantly the integration to Acer by a logistics facility which is where Celigo came into play. Salon scheduling is something that NetSuite doesn’t do and probably never will so we needed a separate system for that which needed to integrated. We’ll talk more about that. Our technology strategy has always been we wanted to go cloud and as we sit here today we do not have a single application on local service. The entire service is in the cloud. So it’s a really good place to be. And that included the integration platform. So, multiple external systems and it’s inevitable if you’ve got these external systems whilst you can see we use NetSuite for a lot of things there’s always a requirement for external system integration. And you need to do so quickly. And the challenge that we were faced with. So what we wanted is a scalable platform, we wanted a single solution. And we did find that in the [inaudible] platform. Part of that was in these integrations, we also need to do data transformations. So as you take data from one system, you need to transform it to a different format, or different structure or different decimal position, for example. And we needed to be able to do that inside of the integration. And then finally, we don’t have a big ICT team, and we don’t have a big budget. So it needed to be cost-effective. And those were the challenges that we were faced with. And that led us on to the journey that we went on. So let’s move on to the next slide. So just a quick snapshot. This is where we started. This is all Oracle NetSuite and fitting the Oracle Bronto platform the marketing platform up at the top of this diagram, but everything else that you see on this slide is Oracle NetSuite point of sale inventory, financials, the loyalty program, and b2b and b2c side all rain on the NetSuite platform. But as I said, there’s always extra assistance. So if we go to the next slide, let’s have a look at what we– We have a quick question here. What POS Are you using for company-owned and franchise stores? It’s an industry point. So and I suppose. Okay, thank you. Okay, so on the slide, you can see so got a few more bubbles in there. So we added a system called focus, which is a business intelligence analytics tool, and a good one too. And we’ve also implemented shortcuts which is a sell on scheduling tool, which is entirely integrated into next reading fair when we went live with it. It was entirely standalone from the Oracle NetSuite system. But of course, we want to be able to share data between the two systems. And that poses some challenges. And then, of course, we chose to go with silica and that became our integration platform. So let’s go to the next slide and focus on this silica bubble cloud and little see how we use this. So to start with you start to the clockwise shortcuts I’ve spoken about our salon scheduling tool. So we built some integrations. We started with some limited one-way integrations between Oracle and shortcuts. For example, we have replicated or synchronized our pricing for the various salon services between our Oracle system and shortcuts. We’ve gone on from there to start synchronizing our customer’s synchronizing, the bookings that come through shortcuts, etc. So to Mediterranean continues but we use the Leo to pass at information to and from our shortcuts platform. Then the next one ran not in any sort of order, but Kepler Analytics is a store traffic system traffic counting system. And again, we needed to be able to pass sales data from the store hourly daily weekly sales figures from NetSuite system integrator analytics. So, they sackless data in and then they produce a huge amount of reports which are very useful for stores to be able to track their conversion rates track the volume of customers going past and how many come into the store, how long they stay in the store, whatever, which has been super useful for our business. Now, this effectively is built at that particular integration is built through a standard straightforward so search at NetSuite and plugged into Sligo and say every day do this and it just parses that data through to them set and forget we do not touch it. It just happens automatically every day. No technical requirement, technical knowledge or coding required straight up set it up, takes you about half an hour maybe to set up something like that. Next one ran is Facebook product feed. Now, that just really represents all things digital. It’s Facebook. It’s Instagram. We’ve got feeds to Google Shopping, for example, is a whole bunch of product feeds that we send out to external system so that they can absorb our current position on stock in products, images, imagery that they need to use for social media tips. We’ve got several integrations to easily get straight out product feed one directionality to those external systems. The next one which probably the biggest one and certainly it was the first [inaudible] was the east store logistics, which is our 3PL service provider, our warehouse. We were never going to run our own warehouse. It’s not our business to be running in the warehouse system. So we add to whichever way you look ahead to build an integration to our [3PL?]. I’m going to talk more about that. They’ve got a slide that I’ll step through in a little while. Next one around is the Net Promoter score, which we use a system called People Pulse. And again, yeah, we’ve pulled data, sales data that comes through from our store network, push that into the Net Promoter score system. They do their thing, sending out surveys and getting survey information back from customers. And then we take that information, we pull it back again by Celigo. We put it back into NetSuite, into customer records inside of NetSuite. And we’ve given the stores the ability to look at this customer profile, the results, the promoters, and the detractors, etc. On screens inside of the NetSuite user interface, not logging into some separate system directly inside of NetSuite, they’ve got their own Net Promoter Score dashboard on the NetSuite log in because all their data is pulled back via Celigo into NetSuite.