Point Solutions vs. NetSuite: How to Decide Which is Best for Your Company

Point solutions vs. NetSuite.

Growing companies often weigh the benefits of each. And the debate begins because many small business owners start with point solutions. But as their operations grow, they wonder about switching to cloud ERPs. Is the investment worth it? 

Let’s discuss. 

What is a point solution?

A point solution is an application or program that addresses a single issue, such as accounting, inventory management, or credit card processing. Common point solutions include the following. 

• QuickBooks for accounting
• MailChimp for email marketing
• Shopify for e-commerce
• Salesforce for customer relationship management

Why use a point solution?

Point solutions work well for start-ups and smaller businesses because they’re simpler and cheaper than ERP software. SuiteDynamics CFO Grace Martin says that QuickBooks, for example, serves a simple business model well. 

“A non-accountant can perform bookkeeping without a whole lot of training,” she explains. “I think it’s a great solution in those sorts of situations.”

Also, consider specialization when weighing point solutions vs. NetSuite. Many single-issue programs include top-of-the-line features not found in more comprehensive software. 

What is a NetSuite ERP?

An ERP, or “enterprise resource planning” software, is a system that unifies all of a business’s operating processes onto a single platform. An employee can use this system to access nearly every aspect of a company, including accounting, human resources, inventory management, marketing, shipping, and more. 

NetSuite is the world’s top Cloud ERP software system. It separates itself from competitors with cutting-edge features such as a native e-commerce platform and vast multi-currency capabilities. 

Why use a NetSuite ERP?

One of NetSuite’s biggest advantages is its unified approach. Unfortunately, a company that uses a string of point solutions risks creating data silos because each program operates with a different information set. So, mistakes can occur as these systems run with separate data and little-to-no communication among the programs. 

However, a NetSuite ERP runs all business processes from a single database, meaning every department operates with a uniform set of accurate information. This method streamlines processes, saving time and money.

A unified platform also provides more comprehensive and useful reporting capabilities than point solutions. For example, an ERP allows users to compare sales data to marketing KPIs and inventory numbers to purchase orders. In fact, NetSuite’s custom segments feature enables users to create reports comparing any combination of data sets. 

And if you ask Grace Martin, NetSuite’s native e-commerce platform, SuiteCommerce, also makes it a powerful tool. 

“If a business has a very active website—and particularly if they want customers to place their own orders—NetSuite is perfect,” she says.

Point solutions vs. NetSuite: When should a company switch?

Many point solutions aren’t designed to handle multiple users or an enormous amount of complicated data. So, companies often grow frustrated with them as business expands.

“QuickBooks, or a solution like that, might not be appropriate when a company has multiple warehouse locations, multiple businesses, or multiple subsidiaries within the same business,” Grace says. “QuickBooks doesn’t handle any sort of inter-company transactions at all.”

So, when business truly ramps up, many companies evaluate their point solutions vs. NetSuite. They examine the pros and cons of both, including NetSuite’s ability to scale and handle international commerce. And many choose the ERP.

Then, business has a chance to explode. 

When considering point solutions vs. NetSuite, you must examine your company’s complexity.

“As soon as they are live in NetSuite, it gives them a platform to truly take off,” Grace states. In fact, she has personally witnessed a business more than double its sales within a year after going live with NetSuite. 

She also explains that the system’s ability to coordinate complex business processes is integral to profitability. 

For example, a purchase may occur on a business’s e-commerce site, and NetSuite will immediately know if the item is in stock. Then, the system initiates the shipping process so customers can enjoy same-day shipping. Or, if the item is unavailable, NetSuite will either alert purchasing or manufacturing to re-stock. 

“It automatically takes care of all those process points,” Grace says. “If you’re using a system that requires human intervention, then you’re wide open to mistakes. But NetSuite is seamless.”

So, when considering point solutions vs. NetSuite, you must examine your company’s complexity. How many moving parts are involved in your processes? Do you need a more efficient system? 

And then consider how big you want your company to grow—because a NetSuite ERP can spur quite a bit of expansion. 

Grace even believes the system is so integral to growth that she can’t imagine a company handling international business without it. So, essentially, if an organization wants to expand, point solutions won’t cut it.