Customer Solution Case Study
/ Pharmacy Chain Sees Business Management Solution Pay for Itself in Just Six Months
Overview
Country or Region:Lithuania, Latvia, Estonia, SlovakRepublic, Poland, and CzechRepublic
Industry:Retail, Food and Drug Retailing
Customer Profile
Eurovaistines is one of the biggest retail pharmacy chains in the Baltic States, with a network of more than 300 stores in six countries, including the CzechRepublic in Central Europe.
Business Situation
Eurovaistines executives wanted to improve the company's ability to analyze and manage its network of pharmacies to meet the new demands of its rapidly expanding business.
Solution
Eurovaistines implemented Microsoft® Business Solutions–Navision®, now part of Microsoft Dynamics™, across its 300 stores using Microsoft SQL Server™ 2000 as the central database.
Benefits
Visibility improved across business operations.
Rapid return on investment.
More effective business decision making.
More efficient customer service.
Fast access to up-to-date business information. / “After the installation of Microsoft Navision, customers' payments with electronic cards became 10 times faster. Customers with drug prescriptions are served two-to-three times quicker.”
Seitumeras Curlu, IT Department Director, Eurofarmacijos Vaistines
Eurovaistines is one of the biggest pharmacy chains in the Baltic States, with more than 300 stores in six European countries. In 2005, Eurovaistines executives wanted to upgrade the out-of-date enterprise resource planning and accounting system to compete effectively in a competitive market. They decided to introduce an integrated system, which would provide a complete picture of the business, to improve business analysis and enhance performance. Working with Microsoft® Certified Partner Sonex Sistemos, Eurovaistines implemented a new business management solution using Microsoft® Business Solutions–Navision® (now part of Microsoft Dynamics™). Eurovaistines now can improve its business operations, while seeing a return on its investment within six months of implementation. Customers' transactions with electronic cards have become 10 times faster and drug prescriptions are now filled two-to-three times quicker.
Situation
Eurovaistines is one of the largest chains of pharmacies in the Baltic States, with a network of more than 300 stores in six countries. Owned by UAB Eurofarmacijos Vaistines and established in 1998, Eurovaistines operates in Lithuania, Latvia, Estonia, the SlovakRepublic, as well as Poland and the CzechRepublic.
Because of its rapidly expanding network of pharmacies, Eurovaistines executives knew that the retail group needed to improve its business processes to meet the demands of rapid growth. Seitumeras Curlu, IT Department Director of Eurofarmacijos Vaistines, explains, “As the network of our pharmacies grew, it was becoming increasingly complex to evaluate the performance of each store. Quite simply, our existing technology structure was not suitable for our growing business.”
Eurovaistines used an enterprise resource planning (ERP) and accounting system developed locally. It was out of date and could not easily adapt to the needs of a growing company. The ERP system could only integrate with each drugstore on an individual basis, which meant business information was disparate and not held centrally. It was difficult for the Eurovaistines management to get a clear picture of the entire company’s activities, which made decision making challenging. As a result, the Eurovaistines workforce was not used effectively. And company staff members spent time manually processing information that should have been integrated automatically.
Curlu observes, “We were really restricted by the older system, which could only analyze data down to each separate drugstore. It was not possible to draw comparisons between the stores to give us a meaningful view across our network. To compete well in the market and to respond quickly to the demands of our business, we needed powerful analysis tools to review our company performance. On this basis, we decided to install a new accounting and ERP system.”
Solution
Eurovaistines executives decided to implement Microsoft® Business Solutions–Navision® software, now part of Microsoft Dynamics™, as recommended by Microsoft Certified Partner, Sonex Sistemos.
Curlu recalls, “Microsoft Navision was the most flexible and cost-effective solution. It was also an international solution, which could be used across our network of pharmacies, which are located in multiple countries. We chose Sonex Sistemos because they have nine years of experience in Microsoft Navision, with more than 150 projects successfully implemented in this region.”
The solution incorporates the main Microsoft Navision modules for receivables and payables, warehouse, fixed assets, and sales order processing. Microsoft SQL Server™ 2000 serves as the database for Microsoft Navision. Microsoft Navision runs on the Microsoft Windows Server™ 2003 operating system, part of Microsoft Windows Server System™ integrated server software, with Microsoft Office 2000 Professional on the desktop.
The Microsoft Navision solution was customized by Sonex Sistemos to include Eurovaistines's complex pricing structures, as well as install a specific vertical solution for accounting compensated drugs. Microsoft Navision integrated into the pharmacies’ Windows® operating system–based retail point-of-sales system, so that information from every sale could be accounted for at the company's headquarters.
In addition, Sonex Sistemos developed a single, Web-based portal solution to automate the ordering process from each pharmacy. The portal integrates centrally with SQL Server 2000, which links directly to Microsoft Navision. The portal provides all product and pricing information on any ordering requests that pharmacy staff may have.
Vladislav Osmianskij, Project Manager, Sonex Sistemos, explains, “Microsoft Navision is modular, which makes it easy to use and adapt to each customer. As Eurovaistines expands further, we can simply add other modules it may need, which is a huge benefit.”
Osmianskij continues, “The real benefit of Microsoft Navision is that it provides one consistent interface to all functional areas of the system. This reduces the costs of development that are usually required for separate interfaces for each area. This also makes it easy to introduce the custom solutions—because they are all based on the similar interface.”
Installation of Microsoft Navision version 3.70 began in Eurovaistines’s 200 Lithuanian pharmacies at the end of 2004. The full implementation process took nine months. Migration to the new business management solution was achieved through several stages, following the initial analysis. In February 2005, the financial modules of Microsoft Navision began operation, followed by the warehouse modules in June, and sales order processing in July. During this same period, installation began in the other four countries.
There are 500 users in total, including 40 Microsoft Navision users at headquarters. The entire solution, to be completed by mid-2006, will cover more than 300 pharmacies in all five countries.
Benefits
Return on Investment Within Just Six Months
Since the implementation of Microsoft Navision, Eurovaistines executives can already see the impact on the company's bottom line. Whereas before, each pharmacy had several different systems, now there is just the one system, which simplifies the IT support requirements.
“Though just a few months have passed since the early implementation phase, our company can already see that the tangible business benefits of Microsoft Navision can be measured in concrete numbers," Curlu reports. "We anticipate the Microsoft Navision system will pay for itself in six months. Our IT department costs for system support have been reduced by half. We’ve also noticed faster growth in the company’s sales, which is partly due to improved customer service that is made possible with the new system.”
Better Customer Service for All Stores
Microsoft Navision delivered an immediate benefit to the way Eurovaistines staff members provide service to customers. With one central database using SQL Server 2000 for all pharmacies, information throughout the stores integrates into the one system. Pharmacists no longer have to enter data into several different systems, which saves time when serving customers. In addition, there is no need to wait for systems to be updated, because the transfer of new data between systems happens automatically. As a result, information is up-to-date and more accurate.
Curlu comments, “After the installation of Microsoft Navision, customers' transactions with electronic cards became 10 times faster. Now, customers with drug prescriptions are served two-to-three times quicker. These are significant improvements to our customer service that help to make us more competitive.”
Increased Visibility of Business Information Across the Organization
The company's management is now much better informed since the implementation of Microsoft Navision. There is more information available about the profitability of every pharmacy, such as expenses, sales, and orders. Management can now monitor performance between pharmacies and make more-informed decisions about the business.
“We now have access to data from every single sale across the organization. We can analyze at much greater depth the performance of each business and understand which businesses are operating effectively—we can even examine the success of individual pricing campaigns. Microsoft Navision helps us gain control and manage the business more strategically,” Curlu points out.
Centralized Ordering Simplifies Business Processes
Each pharmacy must adhere to strict conditions of agreements with drug suppliers, because ensuring proper business conduct is vital in the pharmaceutical industry. Since the centralized Web portal has come into effect, Eurovaistines staff can avoid common mistakes and identify any operational risks
Curlu advises, “Business activities are transparent with the new centralized system in place. Each pharmacy can simply check the portal for the suppliers with the best prices and products. Management can centrally monitor who is buying what and analyze this to ensure effective and proper business practices. This increases our control and profit. We are now in a much stronger management position since Microsoft Navision was introduced.”
Improved Flow of Information Across the Organization
There has been a radical change in the way information is processed throughout the network of Eurovaistines pharmacies since Microsoft Navision has been installed. For example, in the past, information on pricing changes was sent out through e-mail. The pricing changes were then printed out by each pharmacy, distributed among the staff, and referred to manually. Now, all this data is held in the centralized system where it can be easily accessed. This database contains the latest information, helping to ensure availability of accurate and reliable information.
The finance department has also been transformed. Automatic processes have replaced the previous manual, paper-based systems. Finance staff just have to check the system to access accurate information on items such as purchase orders, product returns, and other similar activities. The system then generates invoices and notifications automatically, which are then sent directly to suppliers.
Curlu concludes, “Accurate information is distributed automatically throughout our company, at a much greater speed since the arrival of Microsoft Navision. Business is simply less time consuming now. The next stage is to introduce planning systems to help manage stock more closely in our warehouse. Microsoft Navision offers significant benefits to support the growth of our business.”
Microsoft Dynamics
Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence. Microsoft Dynamics works like familiar Microsoft software such as Microsoft Office, which means less of a learning curve for your people, so they can get up and running quickly and focus on what’s most important. And because it is from Microsoft, it easily works with the systemsthat your company already has implemented. By automating and streamlining financial, customer relationship, and supply chain processes, Microsoft Dynamics brings together people, processes, and technologies, increasing the productivity and effectiveness of your business, and helping you drive business success.
For more information about Microsoft Dynamics, go to: