How ToughBuilt Cut Processing Time and Saved Costs with Acumatica Cloud ERP

Established in 2012, ToughBuilt Industries Inc. has carved a niche in the competitive tool industry with its robust line of products designed for construction professionals and DIY enthusiasts. The company manufactures a variety of essential tools, such as tool bags, kneepads, sawhorses, and jobsite tables. Its commitment to durability and quality has facilitated partnerships with major retailers like Home Depot and Menards, propelling a substantial sales growth to $20 million in 2019, marking a 25% increase from the previous year.

Despite this success, ToughBuilt encountered operational challenges that escalated with its growth. The company’s reliance on QuickBooks for accounting and inventory management became a critical bottleneck. This system, while adequate for a small startup, proved inadequate for handling the increased volume and complexity of ToughBuilt’s operations. 

Challenges

As ToughBuilt Industries rapidly expanded, it quickly outgrew its QuickBooks system. The company, which had escalated from $1 million in sales six years ago, found the entry-level software insufficient for its growing needs and plans to go public. 

The reliance on QuickBooks led to cumbersome manual processes. The team had to manually input orders and communicate with third-party logistics using spreadsheets that required additional manual re-entry into QuickBooks. "It was a headache," Galstyan remarked, highlighting the inefficiency with daily order processing taking up to five hours and complex orders consuming as much as 15 minutes each. This inefficiency made it clear that additional staff would be necessary simply to manage the increasing volume of transactions.

Moreover, the manual processes extended to expense entries and inventory tracking, complicating communications with the sales team, which relied on outdated methods like emails and phone calls. 

Seeing the need for a more robust infrastructure, ToughBuilt began searching for a comprehensive ERP solution that could handle end-to-end business management in preparation for becoming a publicly traded company. This strategic move aimed to streamline operations, enhance real-time data accessibility, and support scalable growth.

Solution

ToughBuilt was looking for a cloud-based solution that could seamlessly integrate with third-party software, manage complex financial reporting demands, and expand efficiently as the business expanded. Their aim was to streamline as many operations as possible through automation. 
 

Moreover, the company aimed to extend its reach into new markets, including major retailers like Lowe’s, Home Depot Canada, Do It Best, and True Value Hardware, and to increase its international presence. The need for a robust ERP system became even more pressing as they planned to roll out innovative new products and develop mobile applications tailored to the construction industry.

After evaluating several ERP systems, including Sage, ToughBuilt selected Acumatica for its scalability, cost-effectiveness, and advanced features. 

Moreover, Acumatica’s cloud-based system offered the flexibility to manage operations remotely — a crucial feature for a company with manufacturing and distribution sites worldwide. This capability ensured that team members could access vital operational data and perform their roles effectively, regardless of location, facilitating smoother expansions into new markets and more agile responses to market demands.

Benefits

Dramatic Reduction in Order Processing Time

With the implementation of Acumatica Cloud ERP, ToughBuilt dramatically reduced the time required to process orders from several hours to just minutes. This efficiency boost has enabled quicker responses to customer demands, greatly enhancing customer satisfaction. 

The integration of third-party applications like Artsyl’s Order Action and Avalara’s tax software into Acumatica has automated tasks that were previously manual, conserving valuable resources and reducing the need for additional personnel.

Enhanced Data Accessibility and Real-Time Insights

Acumatica has revolutionized the way ToughBuilt accesses and analyzes its operational data. By deploying dashboards and generating around 5,000 DataSelf reports directly within Acumatica, the team can now access crucial operational data instantly — a significant improvement over the previous 30-day wait. 

This instant access to data supports effective decision-making and operational transparency across all levels of the organization.

Operational Continuity and Global Access

The cloud-based nature of Acumatica was particularly beneficial during the disruptions caused by the COVID-19 pandemic, enabling Galstyan and his team to manage global operations remotely. This feature has proved essential for maintaining business continuity, allowing seamless communication with logistics partners and uninterrupted order processing. 

This anywhere access has not only kept operations running smoothly but also supports ToughBuilt’s plans to expand into additional international markets.

Acumatica and Artsyl's OrderAction helped Martin Galstyan keep their operations staff lean and allowed them to hire additional R&D employees who created new products and brought them to the market quickly. Because the new business management system is cloud-based, everyone has access to it. 

The sales team can use the Acumatica Mobile Application on their smartphones to send expense receipts, which has reduced errors, increased reimbursement speed, and significantly reduced the workload for Galstyan and his team. 

Sales team members now have any time, anywhere access to customer account order status and product inventory levels available at various locations, which was not readily available before.

ToughBuilt now has more efficient business processes in place to manage its growth more effectively. “With Acumatica, you are going to save money and time, and you are not going to need to hire more (accounting) people,” Galstyan says.

Reduce Your Processing Time and Cut Expenses like Toughbuilt Did

As an established Acumatica partner, we at AcuPower are committed to providing a comprehensive suite of services for all your Acumatica Cloud ERP needs. From initial consultation to ongoing support, we ensure that every solution is tailored to fit your unique business requirements, helping you achieve the efficiency and scalability that ToughBuilt has experienced.

If you're interested in learning more about Acumatica and how this all-in-one cloud ERP can transform your business operations, we invite you to explore our extensive range of insightful articles on our blog. 

If you want to see how YOUR business data and workflows get streamlined in Acumatica, we offer personalized consultations and custom demos, designed to showcase how this powerful ERP solution can meet your specific needs.

Don’t miss the opportunity to enhance your operational efficiency and business intelligence with Acumatica. Reach out to us today to discover how we can support your journey towards streamlined business processes and improved decision-making capabilities.

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