Private equity firm Apollo Global Management will take Rackspace private in the all-cash deal.
Beyond the Rack had no interest in building a large IT staff to install and maintain a complex, costly on-premise solution.
SAN MATEO, Calif. — July XX, 2011 — NetSuite Inc. (NYSE: N), the industry’s leading provider of cloud-based financials / ERP software suites, today announced that leading online flash sale e-tailer, Beyond the Rack deployed NetSuite OneWorld to support its rapid, global expansion and better manage its fast-moving inventory. Beyond the Rack's membership escalated to more than 4,000,000 since its inception in 2009, taking the top spot on Internet Retailer’s 2011 fastest growing online retailer list. This rapid growth crushed the flash site’s technology infrastructure of disparate systems, including QuickBooks and other home-grown custom programs, and jeopardized its continued growth. NetSuite OneWorld's unique ability to provide multi-subsidiary, multi-currency consolidation has enabled Beyond the Rack to manage its significant transaction volume in the US and Canada, as well as seamlessly launch new ventures. Beyond the Rack's 230 employees are now relying on NetSuite OneWorld for accounting, inventory, CRM, multi-currency transactions, purchasing, analytics and reporting. For information about NetSuite customer success stories, please visit: http://bit.ly/NSCustomerSuccess.
Eliminating a hairball of software systems with NetSuite OneWorld enabled Beyond the Rack to achieve its goal to quadruple revenue in 2010 by accurately processing thousands of daily transactions and integrating the customer and inventory lifecycle. Based in Montreal, Beyond the Rack is a private online shopping club offering designer brand apparel, accessories, home décor, beauty, electronics, and travel deals at prices up to 70 percent off retail. Merchandise is sold in the context of limited-time “flash sale” events lasting approximately 48 hours, with limited quantities and availability. The company was able to launch successfully with a collection of point systems, but as order volume grew the limitations and inefficiencies of the software applications quickly became apparent. Beyond the Rack wanted to avoid a common start-up pitfall, proactively addressing the pain points of its software hairball before a crisis emerged. Order delays were becoming more common and other, more serious failure modes looked inevitable. Beyond the Rack needed a new, comprehensive solution that would support its unique sales model and cash flow requirements to protect its strong growth trajectory.
Beyond the Rack had no interest in building a large IT staff to install and maintain a complex, costly on-premise solution, and the company needed a solution with a comprehensive, flexible enterprise platform that could integrate with the custom Ecommerce front-end. NetSuite OneWorld was the natural choice. It proved perfectly suited to the task, helping Beyond the Rack codify its processes and supporting the unique and intricate flow of goods, purchases, and cash through the rapid-turnover sales process. The multi-subsidiary rollup capabilities of NetSuite OneWorld enable Beyond the Rack to manage income, tax, and profit/loss accounting separately but transparently in both its US and Canadian operations.
Today, NetSuite OneWorld manages all of Beyond the Rack's back-office needs, and provides all of the customer and product data necessary to power its customer-facing Ecommerce site. Growth continues on-pace and uninterrupted, as Beyond the Rack introduces hundreds of new product SKUs every day and processes thousands of sales through the NetSuite OneWorld solution. Multi-location inventory is now cleanly integrated, providing clear visibility into the company's overall stock levels. NetSuite's worry-free cloud availability is a perfect fit for Beyond the Rack, which typically experiences dramatic, 100-fold traffic spikes in the course of a single hour when new products are offered for sale.
"NetSuite OneWorld is a key component of Beyond the Rack’s back office systems. Their support team is valuable in helping us solve the unique problems associated with a flash sales business” said Shawn Kernes, VP and CTO at Beyond the Rack. Using NetSuite rather than a traditional in-house solution allows us to reduce upfront investment and keep our money focused on growing the business.”
NetSuite OneWorld delivers all the features and functionality needed for Beyond the Rack to run its fast-growing revolutionary fashion business, and expand to new business ventures. The NetSuite cloud ERP solution gives the company a clear chart of accounts and, for the first time, detailed insight into the margin of each product and purchase. By future-proofing with the flexible, expandable NetSuite OneWorld solution, Beyond the Rack has a clear course ahead to introduce more shipping locations, automate more taxation processing, and further refine the buying process. For information about NetSuite OneWorld, please visit: http://bit.ly/NSOneWorld.
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For more information about NetSuite, please visit www.netsuite.com.
About Beyond the Rack
Beyond the Rack, North America’s premier online shopping club offers its members the most sought-after designer brand apparel, accessories, beauty products, home décor, and leisure travel packages at up to 70% off retail. Ranked by Internet Retailer as the fastest-growing e-tailer in 2010, Beyond the Rack sells its products in the context of two-day, first-come, first-served, limited-quantity events. Members can expect up to 15 new events each day, starting at 11AM ET. The privately held company has offices in Montreal and New York, with a staff of 230 full-time employees. To date, Beyond the Rack proudly serves 4 million members across North America.