Kavak, the leading company in the pre-owned car market in Latin America, is working with Oracle NetSuite to improve access and transparency in used car sales and financing.
Kavak is currently one of the largest startups in Latin America. The company, born in Mexico in 2016, arrived in Brazil just over two years ago, presenting a pioneering business model that includes online buying and selling and services for pre-owned and used vehicles.
Kavak was the first to take a different approach to the used car segment in the Latin American continent and bring it to the world, bringing significant changes to the entire industry, especially in Brazil.
Kavak brought a fresh perspective to the pre-owned and used car segment in Latin America, especially in Brazil, which had seen no innovations for about five decades. Before Kavak, buying a used car was considered a ‘headache,’ and consumers had no one to turn to if they encountered any problems with the pre-owned vehicle.
Intelligent CIO LATAM spoke with Wilson Ferraz, Head of Product Finance Global, Kavak, about how the start up put NetSuite into gear.
How did the Kavak IT team work with NetSuite on implementing the transformation?
The implementation of NetSuite was a crucial step towards Kavak’s digital transformation. To ensure that our IT team worked efficiently with NetSuite during the implementation, we followed five guidelines.
Strategic planning: Clearly defining the objectives of the NetSuite implementation and how it would align with the business strategy, as well as identifying the business processes that would be involved. This step was vital to ensure all goals were aligned and the implementation would drive the desired outcomes.
Multidisciplinary team: Forming a multidisciplinary team with members from different areas of the company (finance, sales, operations, etc) to ensure a comprehensive implementation aligned with the needs of all departments. This approach helped in gathering diverse insights and addressing all functional requirements effectively.
Integration and customization: Integrating NetSuite with other systems and applications used by Kavak to ensure smooth and consistent data flows. Customizing NetSuite as needed to meet the specificities of the business, but avoiding excessive customizations that could make system maintenance and updates more complex. This balance was essential to maintain flexibility without compromising system integrity.
Change management: Clear and transparent communication with the entire company about the changes that would occur and the expected benefits. Effective change management ensured that all employees were on board and understood the positive impacts of the new system.
Monitoring and evaluation: Regular monitoring of NetSuite performance to identify and resolve any issues or bottlenecks, followed by regular evaluations of NetSuite performance and related business processes to identify areas for improvement and optimization. Continuous improvement practices were key to maintaining high performance and adapting to any new challenges.
By following these guidelines, Kavak’s IT team positioned itself well to successfully implement NetSuite and support the company’s digital transformation, ensuring sustainable growth and operational excellence.
How did you sell the wider Kavak organization on the advantages of adopting NetSuite?
The process of analysis, persuasion and decision-making began with a strategic approach highlighting the tangible and intangible benefits that ERP solutions could bring to Kavak. We started by conducting a detailed analysis of financial processes, seeking to identify areas facing challenges such as time-consuming manual processes, lack of real-time visibility into operations, or difficulties in resource management. Next, we presented the tangible benefits that NetSuite would provide in pursuit of operational efficiency, data-driven decision-making and scalability. This analysis was essential to align our objectives and ensure that we were on the right path.
Once this analysis was completed, we moved on to evaluating costs and financial benefits, where NetSuite emerged as the best option in terms of cost reduction through process automation, and consequently, a positive ROI through improved efficiency and productivity. Additionally, it helped ensure legal compliance with regulations and standards in our industry, as well as high standards of data security. These benefits were critical in persuading our stakeholders about the feasibility and advantages of the solution.
Finally, we needed to adopt a modular approach and ensure that Kavak would receive the necessary support and training to ensure a smooth and successful transition. These points were addressed by a multidisciplinary team through a clear and detailed implementation plan, including a timeline, estimated costs and required resources. Ongoing support and continuous improvement were also part of our strategy to maximize the benefits of NetSuite.
After addressing all the points mentioned and standing out as the best option, NetSuite was chosen by our stakeholders. It was then seriously considered for implementation as part of the company’s growth and digital transformation strategy, reinforcing our commitment to innovation and excellence.
Where do see the adoption of the NetSuite solution taking Kavak into the future?
The choice of NetSuite provided a solid foundation for future growth and success, enabling better operational efficiency through the automation of manual processes, reducing errors and improving efficiency.
With our value proposition well established, and with an ERP that allows us to do more with less, we will be able to continuously improve the experience of our customers with more efficient processes, enabling sustainable growth through a solid and scalable foundation that supports Kavak’s continuous growth, as well as unlocking opportunities to explore new markets, customer segments, and expand global presence.
Furthermore, the integration of NetSuite has allowed us to streamline our financial operations, offering real-time insights into our business performance. This strategic move has not only fortified our market position but also paved the way for future innovations.
Click below to share this article