Case Study: Accelerated BPM Delivers Measurable Business Results
A major distributor sought to improve its instrument and inventory requisition process and started with 30-day BPM Methodology and achieved measurable results with the implementation of webMethods Fabric 7.1. Premier Medical (PM) is the pseudonym for a small division of a Fortune 50 company that provides quality medical and surgical devices in Canada. There are 350 employees.
Business Goals & Obstacles
PM was seeking to improve its instrument and inventory requisition process. They have a significant amount of inventory on consignment and receive approximately 500 requests per year. The requisition process was extremely cumbersome and involved management across the Sales, Marketing, Inventory Planning, and Finance departments. Furthermore, there was no visibility across the process.
Sales people struggled with creating tedious Excel request forms, and had to spend a significant amount of time on back and forth communications regarding requisition requests.
Marketing struggled because the requests often lacked pertinent data, and had difficulty with tracking the all the requests. They lacked information on the investments made YTD, had difficulty tracking sales progress vs. sales commitments, had to get Director level approval for large requests, and lacked financial modeling and information on large investments.
Inventory Planning struggled because requests came through in multiple formats including email, telephone, from multiple people making requests from both Sales and Marketing. They also struggled with lack of information on requests, and lack of a standard approval mechanism.
Lack of a standard approval process was also a major issue for the Finance department. Investment decisions were often made by Sales, Marketing and Inventory Planning without consulting Finance. Lack of visibility into the process made it difficult to track sales commitments with actual revenue generation. There was no repository of investment data.
Due to all of this, it took an average of 6 weeks from the original request to the final approval. PM wanted to streamline, centralize, and standardized the requisition process, and shorten the cycle time from 6 to 4 weeks. They also wanted to eliminate redundant follow-ups, provide reporting capabilities, visibility for all of the stakeholders and increase customer satisfaction by becoming more responsive.
Solution - Accelerated BPM
PM began with Logimethods’ 30-Day BPM Methodology as a way to quickly see results and determine how best to optimize the overall business process. Once they had agreement on the new process, the solution was built using an iterative approach. The initial goal was to validate the data at initiation to prevent issues further down the line and get the requisition approved by the right people at the right time. Down the road, they automated order creation based on inventory values.
Logimethods implemented the solution using webMethods Fabric 7.1. Cognos was chosen for Business Intelligence.
PM achieved measureable results from their BPM solution.
- The requisition process cycle time was reduced by 70%, going from 6 to 2 weeks.
- Deployment of requisitioned medical equipment was cut in half - from 6 months to 3 months.
- Sales increased by 6%.
- All departments finally had full visibility across the entire process, which reduced wasted time and effort, and also enables ongoing process improvement.
- The overall cost of the process has been reduced by 10% due to better efficiency.