SKULLCANDY

RUNS BETTER WITH SAP

BUSINESS BYDESIGN
The SAP Business ByDesign solution is
built for small to midsize businesses that are
growing quickly, and we feel like it was tailor
made for our company, both in terms of what
we need to do and in terms of the resources
we have on site. We dont have a huge IT
department and we dont have many server
rooms. We had a need for something that was
simple and scalable.
Jeremy Andrus, President, Skullcandy, Inc.
SKULLCANDY, Inc.
Passionate manufacturers of audio gear: headphones, earbuds,
and wearable electronics.
Industry: Consumer products
Employees: 36
Headquarters: Park City, UT
Web site: skullcandy.com
Solution: SAP Business ByDesign
TOPLINE RESULTS
Reduction in cost relative to revenue
Consistent reporting
Reduction of duplication through integrated platform
Speed of deployment
THE STRAIN OF SUCCESS
The entire idea of Skullcandy and its unique brand of headphones was developed on the slopes of the Rocky
Mountains. Most Skullcandy employees are either skiers or skaters and the company headquarters in Park
City, Utah, evokes the feeling of being in a skate park. When the popularity of their products led to
phenomenal growth (300% in just four years), it also led to the search for an IT platform that could position the
company to manage that growth.
HANDS-OFF TECHNOLOGY
Skullcandy selected an on-demand solution from SAP to eliminate the costs and resources associated with
building and managing a large in-house IT infrastructure. Mark Hopkins, the one-man IT department, offers
his perspective on SAP Business ByDesign. For us its a really good fit. The fact that we dont have to have
a server or an army of people to support the server and the databases, and the fact that it is accessible
through the Internet, makes it a great choice for us, and makes it easy for us to access the system and not
have to maintain it. By simply going online, Skullcandy is able to process all its business transactions.
REAL-TIME READINESS
SAP Business ByDesign has helped Skullcandy decrease order fulfillment time by automating many of the
manual processes that used to drag them down. Kasia Modelski, project manager at Skullcandy, discusses
product fulfillment before and after the SAP software implementation. We faced a few difficulties: we didnt
have a live feed of where our inventory levels truly were, and we were unable to do true tracking of all of our
orders as well. The SAP solution allowed us to know when our orders were shipping, when the orders went
in the system, what our inventory levels were at that point, and what we could and couldnt commit to our
customers. In addition, the SAP software implementation brought Skullcandys Seattle-based warehouse
online into the system for even faster response time. So when demand for a certain headphone explodes,
theyre ready.
Its really important that a good brand with good
products and good marketing is married to very
good operations and very good systems. We
see brands all the time across industries that
just dont put the necessary infrastructure and
systems in place to grow. And a good brand
without the systems to support it is not going
to survive.
Jeremy Andrus, President, Skullcandy, Inc. MODEST INVESTMENT WITH REWARDS
Given Skullcandys small size and mobile workforce, a hosted business solution really gives Skullcandy an
advantage. The modest investment in SAP Business ByDesign allows them to invest more in R&D and market
expansion activities especially in Europe and Asia, where the company is rapidly expanding.

TURN IT UP
For now, Skullcandy is the number-two headphone provider in the United States. And because the SAP
solution lets them focus on what they do best, it helps Skullcandy focus on getting to number one. Jeremy
Andrus, president of Skullcandy, sums up their relationship with SAP best. At the end of the day, we strive
to foster an environment of innovation and creativity. Having good systems in place allows us to manage
the process internally, so that we can then turn our resources to thinking about the next level of innovation
and creativity. SAP is an important part of that.

2010 by SAP AG.

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