Delivering Value: How GSI Enhanced Its Agricultural Monitoring Services

Grain & Protein Technologies serves customers in over 100 countries worldwide and leverages its strong portfolio of industry-leading brands—GSI, Cumberland, AP, Tecno, and Cimbria—to provide comprehensive equipment solutions for grain, seed, poultry, egg, and swine production. GSI manufactures grain bins, feeding systems, and agricultural monitoring solutions that serve the farming industry with equipment for grain storage and livestock management.

The Challenge

ERP Limitations Hindered Service Delivery

When GSI began developing subscription-based monitoring systems for agricultural facilities, they faced significant business challenges due to system limitations. As Laura Peters, General Accounting Manager, explains: "We had a product offering that would monitor grain bin and tower dryer information. But our existing systems weren't equipped to manage these services effectively."

This reality stemmed directly from their ERP system's limitations. For a manufacturer traditionally operating through a dealer network, GSI's systems weren't built for direct customer relationships. "Our existing infrastructure was designed exclusively for dealer sales, with no capability to manage farmer subscriptions directly," Peters explained.

These technical limitations became increasingly problematic as GSI developed more sophisticated monitoring systems for chicken houses and hog facilities, allowing farmers to track conditions via smartphone. As these systems became more advanced, the value proposition to farmers grew substantially, but GSI lacked the infrastructure to deliver these services at scale.

Using its ERP system to manage subscription services was like trying to use a hammer to tighten a screw—it simply wasn't the right tool for the job. While an ERP excels at handling traditional transactional business, it lacks the specialized capabilities needed to manage the volume and complexity of subscription data, particularly when it comes to revenue recognition and direct customer relationships.

The Solution

A Value-Focused Subscription Platform

GSI recognized that scaling its subscription business to deliver maximum value would require purpose-built systems. They chose Chargebee as their subscription management platform to address these key challenges.

The most critical improvement came in revenue recognition. GSI used Chargebee to deploy a proper revenue amortization process, aligning its practices with accounting standards required for public companies.

Chargebee also solved GSI's customer relationship challenge by allowing direct management of farmer subscriptions. "Chargebee gives us the flexibility to manage relationships with all our farmers directly and handle their services efficiently," explained Peters. Customer onboarding became significantly more streamlined. "The simplicity of adding new customers with just basic information is something our previous system couldn't accommodate," Peters added.

Payment processing also improved, with Chargebee enabling credit card payments and simplifying the payment application process. Chargebee's flexibility supported GSI's multi-entity structure, allowing GSI to implement Chargebee across US and Canadian operations while maintaining proper legal separation.

The Results

Increased Value, Growth, and Business Continuity

Implementing a proper subscription management system transformed GSI's approach to delivering monitoring services. Most importantly, they achieved compliance with revenue recognition standards. "We've moved to full adherence with revenue recognition requirements," Peters confirmed. The system ensures that GSI correctly recognizes revenue over time, meeting the standards required of a public company.

This compliance foundation supported growth in GSI's subscription business. "We're seeing consistent growth in our subscription customer base," noted Peters. The improved onboarding and direct management capabilities made it easier to expand the company's customer base beyond what its previous systems could support.

A silver lining that GSI didn't expect was that its subscription system proved remarkably resilient during corporate transitions. When AGCO divested GSI to private equity in 2023, the subscription business continued without interruption. "Our customers experienced no disruption during the transition because we maintained our legal entity structure," Peters explained. While many systems and contracts needed to be unwound during the separation, GSI's subscription operations maintained continuity. "We have the same customers, same service delivery process. That portion was not tied into AGCO in any way," Peters said.

This continuity positions GSI for future expansion. "Though subscription services are relatively new for our business, there's significant interest in scaling our offering further," Peters noted. With systems now in place to handle the financial, operational, and compliance aspects of subscription management, GSI has a platform to grow this business line and deliver even more value to farmers under its new ownership.

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