When Skullcandy installed its first ERP system -- SAP Business ByDesign -- in 2008, the maker of edgy-looking headphones and other audio equipment probably couldn't have guessed how much growth was still ahead of it. Executives at the then five-year old company just knew they were outgrowing Intuit QuickBooks and Microsoft Excel.
"At the time, the company didn't have an IT staff, and they didn't want to build an IT staff, and so the concept of a cloud solution was very appealing to them," says Mark Hopkins, the company's senior director of IT. But in the eight years since, SAP Business ByDesign has helped to support a quadrupling of revenue to nearly $300 million, an initial public offering, a corporate acquisition and significant global expansion for the company, which is based in Park City, Utah.
Hopkins details the role of SAP Business ByDesign in his company's rapid growth in this video interview from the 2016 Sapphire Now user conference held in Orlando, Fla.
Essentially functioning as the integration platform for Skullcandy's business processes, SAP Business ByDesign "is where all of our financial transactions occur, all of our inventory is managed, all of our orders are processed," he says. "We have that heavily integrated through web services to things like an [electronic data interchange] EDI platform, so our customers could send us EDI orders, and we can send out invoices."
SAP BusinessDesign is also tied into Skullcandy's banking platform, for processing inbound payments and bank statements, according to Hopkins. Integration with eight third-party logistics providers (3PLs) around the world helps to coordinate distribution, and several e-commerce sites feed orders into the ERP system. "It's really ... the hub of all the activity, and we have all these things kind of feeding information into it," he says.
Other than someday tying in Concur, SAP's cloud-based travel and expense platform, Skullcandy plans no major changes to the setup and will keep using SAP Business ByDesign to support its global expansion, with Mexico being the most recent addition as of January. Hopkins says the software's out-of-the-box functions support multiple languages and currencies.
"It's mostly just kind of continuing to use it as our platform for expanding our existing integrations," he says.