Lifecykel replaces Xero sprawl with NetSuite platform

Lifecykel has replaced multiple Xero systems and hundreds of spreadsheets with a single NetSuite platform implemented by Annexa, bringing the mushroom biotechnology company's finance, inventory and manufacturing data into one system.

As its operations expanded internationally, the Australian-founded business was running seven or eight separate Xero instances across entities. Information those systems could not manage was tracked in roughly 200 shared spreadsheets, creating a fragmented finance and operations environment.

Lifecykel distributes mushroom-based supplements and home-growing kits to more than 120 countries, including Australia, the US and the UK. Its operating model spans production in the US, shipments into Australia, outsourced bottling in both markets, and sales through channels including Shopify, Amazon and Walmart.

That growth exposed the limits of the company's previous software environment. Reporting had to be produced entity by entity, account reconciliation and consolidation were handled separately, and some purchase orders were raised in spreadsheets without numbering.

Manufacturing and inventory control became a particular pressure point as the business scaled. Lifecykel needed clearer oversight of raw materials, work in progress and finished goods, as well as the ability to track batch and serial numbers across regions.

"Every single entity we had, we had to have a Xero for, so that was seven or eight instances, and then everything the system couldn't hold was tracked in a spreadsheet somewhere," said Nelli Penzes, Finance Manager, Lifecykel.

Traceability had also become essential as the company expanded into larger retail channels. Major retailers require suppliers to trace products through the supply chain, while food safety and certification processes depend on the ability to run a mock recall.

"We needed an inventory platform. Initially, the team looked at a system to integrate with Xero, but it quickly became clear that our manufacturing process was too complex. We were managing the entire end-to-end process, and we needed to track everything, including batch numbers, serial numbers," said Jonathon Meredith-Smith, Chief Financial Officer, Lifecykel.

After considering a bolt-on inventory tool, Lifecykel chose to move to Oracle NetSuite ERP and selected Annexa as the implementation partner.

Complex migration

The migration covered more than finance records. Much of Lifecykel's manufacturing information did not exist in structured form within Xero, so items and bills of materials had to be built from the ground up.

Finance teams mapped trial balances from Xero into a new chart of accounts and completed several practice uploads before launch. Inventory records were also rebuilt with more detailed information, including product quantities, batch numbers and best-before dates.

The cutover had to be managed while eCommerce and logistics operations continued trading. Lifecykel ran about five days of overlap at go-live because Shopify orders and third-party logistics activity could not be halted.

Annexa supported the launch with one consultant in the US and two in Australia on call during the transition. The relationship has continued after implementation as Lifecykel expands its use of the system.

"Annexa's team is very knowledgeable, and up to speed with the latest industry developments. Through our implementation and now into our growth in the future, they have been a very open and transparent partner to work with. We're confident that we'll continue to work together to grow the business," said Meredith-Smith.

Operational impact

The move has cut weekly inventory reporting time from six to eight hours to 10 minutes. Account reconciliation, which previously could take up to a month, now takes days, while the central system handles financial consolidation rather than external tools and manual spreadsheets.

The new setup has also improved visibility across budgeting, forecasting and reporting. Financial information from different countries and currencies can now be consolidated automatically, giving management a clearer picture of group performance.

The effects have spread beyond finance. Better access to shared data has changed how teams across customer service, logistics, manufacturing and sales discuss performance and planning.

"It was clear we were deep in the weeds. But with NetSuite, we are no longer busy with manual day-to-day processes. We're having a lot more detailed, targeted, and strategic conversations across customer service, logistics, manufacturing, and sales teams because we've got all of our data at our fingertips," said Meredith-Smith.

Connected systems

Lifecykel also linked NetSuite with Shopify, Amazon Marketplace and ShipBob through Celigo. That has reduced data silos and shifted the central record for inventory and commercial reporting away from eCommerce systems and into the ERP platform.

That matters as the group adds sales channels in Australia and the US. The integrated system now supports faster access to measures such as gross profit by product and inventory turnover.

"NetSuite is now doing the heavy lifting, with Shopify feeding into it, making NetSuite the new source of truth. Before, Shopify was where we relied on our inventory data, but now I can access detailed data directly from NetSuite and generate instant reports like gross profit by product or inventory turnover," said Meredith-Smith.

Phased rollout

The project also underlined the need to treat ERP work as a business change programme rather than a simple software installation. Lifecykel held back some functions, including work orders, until manufacturing teams were ready to use them.

"Don't try to use everything on day one," said Penzes.

Lifecykel is also assessing the next stage of software adoption, including artificial intelligence tools built around NetSuite data. Will Goodbourn, Solution Architect, Annexa, said, "An AI tool's only really as good as the data underneath it. If your numbers are in five different places and they don't agree, then you can't really run an agent on that."