Case study · Aug 2019 – Jan 2020
Wave Optics: NetSuite for AR-headset manufacturing.
End-to-end NetSuite OneWorld for the augmented-reality optics manufacturer behind some of the world's leading AR headsets — Advanced Inventory, multi-level BOMs, manufacturing routings with inspection, APM, and a bidirectional Proteus WMS RestAPI integration.
1The challenge
Wave Optics designs and manufactures the optical waveguide components at the heart of augmented-reality headsets — the precision-engineered glass that lets light bounce through the lens to display digital content over the real world. They're the kind of business that wins by being measurably better at one specific physical thing.
Scaling from R&D into volume manufacturing meant their existing tooling — spreadsheets, basic accounting software, manual stock counts on the warehouse floor — was about to break. Production was ramping up. So were customer commitments. The finance team was already chasing data instead of analysing it.
They needed a single ERP that could handle complex multi-level BOMs, manufacturing routings with inspection steps, warehouse operations and Advanced Procurement alongside the finance side — implemented and live before volume production started.
2The approach
Build NetSuite OneWorld as a single, auditable source of truth — from procurement through manufacturing routing and inspection, into the warehouse and out to customers — with Proteus WMS integrated bidirectionally so finance and operations always see the same numbers.
Every BOM, every operation step, every stock movement modelled in NetSuite — with Proteus WMS handling the physical floor work and reporting back in real time. No two systems disagreeing about how many waveguides are in inventory at any given moment.
3What was built
End-to-end NetSuite OneWorld covering procurement, manufacturing, warehousing, finance and projects — plus the WMS integration that made it all work in real time.
Core NetSuite modules implemented
Supporting capabilities
- Multi-level Bills of Materials — full BOM structures for waveguide assemblies, sub-assemblies and finished optical modules, with phantom-item handling for variants and accurate roll-up costing through every level.
- SKU and kits strategy — clear distinction between raw optical substrates, coated and inspected sub-assemblies, and packaged finished goods; kits and assemblies modelled correctly for both production and dispatch.
- Manufacturing routings with inspection — every operation step, work centre and resource requirement defined; inspection workflows built into the routing itself, so quality control is structurally enforced rather than bolted on as an afterthought. Yield, scrap and corrective-action paths handled within the routing.
- Advanced Procurement Module (APM) — demand planning driven by sales forecast plus safety stock, automated PO generation with approval workflow, vendor performance tracking, landed-cost handling for international raw-material shipments.
- Proteus WMS RestAPI integration — bidirectional sync covering item master, inbound goods receipts, stock movements, picks, packs and shipments. Real-time inventory updates so NetSuite's Available-for-Sale figure always matched the physical warehouse, with ASNs flowing in both directions and over/under-receipt handling, return notifications and exception reporting all in scope.
- Lot & serial tracking — essential for hardware quality and warranty management; full traceability from raw substrate batch through final waveguide unit.
- Banking automation via HSBC Connect — sFTP EFT supplier payments end-to-end automated.
- Supporting third-party integrations — Dell Boomi for EDI with key customers, Docupeak OCR for vendor bill capture, ADP for payroll, UPS and Fedex shipping integrations.
4The outcome
Clean, auditable system from day one
Volume production started on a system where every cost, every margin and every stock balance was traceable — no untangling discrepancies post-launch.
Real-time finance / operations alignment
Warehouse and NetSuite numbers always agreed because the Proteus integration kept them in lockstep — finance and ops looked at the same dashboard.
Trustworthy BOM costs
Multi-level BOMs rolled up correctly through every assembly, giving accurate margin reporting on every product variant from day one.
Quality structurally enforced
Inspection embedded in routings rather than bolted on — quality steps couldn't be skipped under deadline pressure because the work order wouldn't progress without them.
Acquisition-ready foundation
In May 2021, Wave Optics was acquired by Snap Inc. for approximately $500M. A well-run NetSuite environment isn't the whole story behind a successful acquisition — but messy systems make deals harder.
End-to-end visibility
From raw substrate purchase through finished-goods shipment, a single integrated view — no spreadsheets in the middle, no system gaps to fill manually.
5Technologies used
"Hardware companies scaling into manufacturing have a narrow window to get their ERP foundations right. Miss it, and you spend the next two years untangling stock discrepancies, wrong BOM costs, and audit issues. Wave Optics went into volume production with a clean system from day one."