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Genesis Fitness boosts control, revenue with SAP Business One

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Genesis Fitness, a designer, manufacturerer, importer and  exporter of fitness equipment as well as a franchisor of health stores, has implemented SAP Business One to improve customer relationship management (CRM) and material requirements planning (MRP) as well as increase revenue from its services offering.

With turnover approaching R100-million and 100 employees at its head office and factory in Johannesburg and regional offices in Durban, Port Elizabeth and Cape Town, Genesis Fitness develops and exports innovative fitness equipment as well as importing international brands of fitness equipment and supplying them and its own products to local retailers, and a broad spectrum of commercial customers, ranging from gyms to lifestyle estates and corporate’s.
It also offers franchising opportunities through branded stores that sell health products as well as providing gym and fitness assessment and training support.
“Our operations are an unusual mix of design, manufacturing, importing, exporting, sales, distribution, and service activities and we needed the means to manage them all in an integrated way,” says Genesis Fitness financial manager, Owen van Rensburg. “We looked for a single platform on which we could capture, store, analyse, and report on all our information instead of having it in silos as had been the case.
“We’ve been going through a strong growth phase and we required a system that could not only grow with us but would be easily adaptable to any strategy and operations changes we might have to make as the company grows.
“SAP Business One was the one package we looked at that could affordably address all our needs – giving us the production, financial, and management control we were looking for. With that control in place, we could then exploit SAP Business One’s CRM capabilities. This allows us to more effectively decrease our stock holding and drive revenue from our services offering.
“It helped, of course, that SAP Business One is offered by one of the leading ERP suppliers in the world, with significant research and development to back it and, therefore, ensure that our system will stay up to date and relevant as we mature.”
The SAP Business One implementation was undertaken at a fixed cost by SAP business partner, AdvanceOne, which used a central server to connect the three Genesis Fitness regions via a virtual private network.
“Because of SAP Business One’s comprehensive functionality and inherent flexibility, we were able to implement a vanilla version for Genesis Fitness in spite of the complexity of their business,” says AdvanceOne’s Jonathan Leenstra. “As the need to customise the solution was minimal, we were able to bring the implementation on-stream in less than four months and cap the costs.
Charles Jacobs, CEO of Genesis Fitness, adds: “AdvanceOne offered Genesis Fitness professional service from the outset of the project to after go-live support. Genesis Fitness chose AdvanceOne after a comprehensive vendor selection process and found AdvanceOne to be the most attractive choice in terms of reputation, skill and experience in the SAP market place. We have been impressed with their high level of service and clear understanding of our needs.
“That ability to provide speed to benefit at an extremely affordable price point is what differentiates SAP Business One from competitor products. And the value proposition becomes all the more compelling when you take into account the pre-integrated add-ons that are made available through SAP’s vast network of independent software vendors who develop their products on the SAP platform. The point of sale system that we implemented for Genesis Fitness allows their head office to have tight control of their franchisees’ stock.
“In other words, the initial significant return on investment on SAP Business One can be continuously enhanced with very little effort by the customer.”