Celigo > Case Studies > Topo Designs Streamlines Inventory Management and Cuts Operational Costs by 30% with Celigo

Topo Designs Streamlines Inventory Management and Cuts Operational Costs by 30% with Celigo

Technology Category

Functional Applications - Enterprise Resource Planning Systems (ERP)
Functional Applications - Inventory Management Systems

Applicable Industries

Apparel
Retail

Applicable Functions

Sales & Marketing
Warehouse & Inventory Management

Use Cases

Inventory Management
Picking, Sorting & Positioning

Services

System Integration

About The Customer

Topo Designs is a Denver-based company that specializes in backpacks for various uses, including hiking, travel, school, and city lifestyle. Founded in 2008 by Jedd Rose and Mark Hansen, the company was born out of a desire to create backpacks suited for outdoor exploration. Today, Topo Designs' products are sold worldwide, with their designs continuing to draw inspiration from the Colorado outdoors. Despite experiencing significant growth in sales, the company was facing challenges with its tech stack, particularly in terms of financial tracking and inventory management.

The Challenge

Topo Designs, a company specializing in outdoor backpacks, was facing significant challenges with its aging tech stack. Despite experiencing double-digit sales growth, the company was struggling with accurate financial tracking and inventory management. The existing system required manual reconciliation and keying of data from various sources, leading to inaccuracies and inefficiencies. The company also had issues with order and inventory allocation, with two staff members dedicated to managing virtual locations and inventory transfers. The most significant challenge was maintaining accurate inventory levels throughout the returns process. The accounting team's estimates based on a general cost of goods calculation were often off by over 30%, leading to incorrect listings on the Shopify storefront. With an average of 500-3000 orders per day, this lack of visibility was unsustainable, leading to unfulfilled orders and a 60-day book closing period.

The Solution

To address these challenges, Topo Designs introduced a robust ERP system, NetSuite, and integrated it with Celigo. The integration was implemented on January 1, 2020, and the team first automated its order-to-cash business processes with Celigo’s Shopify-NetSuite Integration App. This reduced errors, increased efficiency, and improved the customer experience. The team also automated its reverse logistics process through Celigo’s Returnly-NetSuite Integration App. This allowed customers to easily return products, with automatic processing and credit issuance upon product arrival at the warehouse. The implementation of these solutions not only streamlined the company's operations but also improved the back-end processes significantly.

Operational Impact

The implementation of NetSuite and Celigo significantly improved Topo Designs' operations. The company was able to clean up their inventory management system and improve visibility, leading to more accurate financial tracking and inventory allocation. The automation of the order-to-cash and reverse logistics processes not only increased efficiency but also improved the customer experience. The company was also able to reduce its operating expenses by 30%. Furthermore, the implementation allowed the company to easily transition their focus from wholesale and retail to online sales during the COVID-19 pandemic, supporting continued growth beyond pre-COVID levels. The ease of use and maintenance of the system also impressed the team, eliminating the need for a dedicated developer.

Quantitative Benefit

Reduced operating expenses by 30%
Streamlined order-to-cash business processes, reducing errors and increasing efficiency
Automated reverse logistics process, improving customer experience and efficiency