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Background
In 1991, Phamatech was founded in San Diego by a small group of scientists and business executives who were committed to manufacturing products and providing services that enhanced customer's medical care, health awareness and quality of life by aiding in the early diagnosis of medical conditions in a cost-effective manner. Relying on sophisticated, state-of-the-art technologies, Phamatech successfully developed a broad range of easy-to-use test devices that provide valuable, reliable, medical information at affordable prices.
In 1998, Phamatech revolutionized drug testing by receiving FDA-clearance on the United States first over-the-counter drug test. Phamatech's Drug of Abuse and Fertility Testing Products are sold in more than 22,000 retail outlets in the US. Sales to parents have grown to about $10 million to $12 million a year, according to industry estimates. The company has since acquired numerous contracts for Township and County Probation and Parole Departments including a Los Angeles County contract to supply drug of abuse tests. Having grown steadily to become a major provider of rapid medical diagnostic devices for home healthcare and clinical settings worldwide, Phamatech's objective is to become "the best in the industry."
Situation
With ongoing company growth, Phamatech required a flexible, integrated solution that would reduce the cost of back office processing, drive operational efficiencies and enable more flexible reporting capabilities. The company sought to replace their existing Peachtree and FileMaker accounting system with a flexible, affordable, easy-to-use system that had outstanding reporting capabilities. They needed a more robust solution in order to handle their increased sales volume of 40-50 orders per day, improve their inventory management processes, monitor their large number of outstanding accounts in collection, and obtain daily information on business performance to make better strategic decisions. They wanted the solution to scale as business operations expanded.
Key Goals
- Improve sales order processing
- Streamline collections management
- Enable more flexible reporting
- Improve inventory management
- Ensure a scalable ERP-level solution
Solution
The solution provides dynamic data analysis for improved, companywide decision-making, and connects salespeople to critical information and processes-resulting in expanded business opportunities. Utilizing Microsoft SQL Server 2000, Microsoft Great Plains 8.0, and a RAID Hard Disk configuration, SCG took a comprehensive approach that addressed system hardware and software upgrades. The system relies on Great Plains core financials with General Ledger and FRx Desktop, Payables Management, Bank Reconciliation, and Receivables Management. Supply Chain Management modules include Sales Order Processing, Processing/Receiving, and Inventory Control. After migrating data from the legacy system, the new solution will replace the legacy system.
Results
While the system is currently in the process of going live, Phamatech has already enjoyed improved sales order processing and invoicing, collections management, and business analytics. They plan to continue the next phase of the project by integrating CRM with Great Plains to further automate their sales processes, as well as by expanding their business analytics capabilities using Microsoft Reporting Services. They may also implement the Great Plains Inventory module for "parts" level management.
Phamatech's decision to move to the Microsoft Business Solutions platform rather than to direct competitors such as Mas 90 or Best Products illustrates the fact that Microsoft now represents a compelling offering for mid-to-large sized companies. The MBS platform is backed by one of the largest R&D budgets in the industry with a clear product and support roadmap for the future. The products are based on leading edge web services technology that ensures that future enhancements can be integrated into the current system at significantly reduced cost, complexity and risk. By providing the functionality that a mid-sized company requires without a heavy resource or support requirement, the MBS platform ensured a "competitive kill," and is building a strong foundation for future business by helping Phamatec achieve their objective to be the best in the business.
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