Control Inventory Costs with a Quality Management System
Between delays, material scarcity, increased prices and labor shortages, supply chain challenges...
MedRent is a Mexican company with more than 50 years of experience in the distribution of medical equipment specialized in neurology, ultrasound, imaging, physical medicine, and rehabilitation.
With its mission to improve the quality of life, care, and service of patients, and being concessionaires of the most recognized brands of medical equipment in the world, the company had the requirement of having the best infrastructure both to manage its internal processes as well as to interact with clients and suppliers in different geographies.
The situation regarding its management software was very particular. Although they had already opted for Oracle NetSuite months before, the implementation by a previous supplier was not successful, so the management decided to search for another company that could help them extract the full potential of the solution.
So MedRent came up with Tekiio (formerly Efficientix) and found a partner who assisted in the complete restructuring of the tool and its processes.
According to Johan Farfán, Information Technology Manager of the company, Tekiio not only carried out the installation but also executed a whole work plan that involved training, improvement, and customization for the distributor.
Distribution companies have inventory management at their core. However, in the case of MedRent, the difficulty is that they have two main classes of goods that require different forms of management.
On one hand, its products are medical equipment of large dimensions and prices, so that, more than storage, they need to connect supply with demand very precisely. Oracle NetSuite has assisted them by integrating the sales requests with the purchase requests from suppliers so that this intermediation is satisfactory in relation to delivery times and customer expectations.
On the other hand, an additional part of the inventory is made up of small but very expensive parts and consumables. Here, the Oracle NetSuite system is important because the entry and exit records, as well as the audit and control methods, prevent losses and decreases in the entire business process.
The company also has to deal with a supplier origin variance. On this front, Oracle NetSuite helps to integrate all costs, including customs and import, always according to the country of origin of the products.
Related to sales, another dimension that requires accuracy in the accounting process is the management of agents and price lists. Here, MedRent has managed to balance the costs with the possible margins in the supply of its articles to the market, as well as the activity and commissions of its sales force.
As everything is calculated, budgeted, and audited from the financial area, in a process reinforced by the managers of the sales area, the system simplifies the detection and correction of anomalies in the prices offered to avoid hidden deficits.
Since the platform also makes it easy to measure the performance of the agents and employees, this has also created an environment of internal competition and recognition for those who achieve better results.
Finally, another headache that the software has saved the organization is the billing and stamping of its different transactions, so that its accounting remains standardized from its entries to its exits.
For Johan Farfán, Oracle NetSuite has also helped to detect and undertake new business strategies at MedRent.
According to the IT Manager, at a certain point in the story, thanks in part to the data provided by the system, the organization decided to migrate from a focus on the sales force to one on customer service. Both the CRM and the ERP suite of Oracle made this change possible in the best possible way.
Another functionality that allowed them to evolve as a company was that they took the installed technological infrastructure to replicate it in other business units and expand as a conglomerate. Today, the corporation comprises five subsidiaries that operate with the same cloud solution.
In general, with the help of Tekiio and Oracle NetSuite, MedRent has undergone a transition towards an organization with a culture of high competitiveness, data-driven decision making and a vision of growth that has positioned them as a leader of their sector.
“Oracle NetSuite in a company is like a gear. As the gears turn, information is generated and spread to different areas. Everything is communicated and connected”.