Client: American Medical Depot (AMD), a privately held full
line distributor of medical/surgical products and services. AMD is a multi-million dollar
distribution company with several warehouse locations servicing the entire country (US).
It serves a large customer base comprised primarily of hospitals, clinics and long-term
care facilities including a number of Department of Veteran Affairs (VA) and the
Department of Defense (DoD) medical centers.
Challenge: American Medical Depot was essentially facing three
major challenges in the operations and technology arena when they initially approached us.
First, in trying to sustain a historically high rate of growth, AMD's transactional volumes
were increasing sharply taxing and overburdening the existing infrastructure. Second,
AMD's competitors (mostly large Fortune 50 companies) were using technology to raise the
level of service in the market place leaving AMD faced with the challenge of providing
faster turnaround times and improved quality of service to its customers. The third, and
probably the biggest, was the need for AMD to leverage its technology investment into a
long-term plan to drive backroom efficiencies. AMD needed solutions that could reduce its
internal costs while enhancing the accuracy of transactional data being processed by its
systems that could have immediate impact but also be scalable and offer long-term
economies. In short, they needed to outsource their IT needs to someone that could take
responsibility for the short, medium and long term integration of technology into their
business.
Solution: American Medical Depot teamed up with APS
Technologies. Working closely with the customer, APS created a true enterprise-wide
business to business commerce solution. We understood their processes and systems and then created an integrated solution wherein the orders from
their customers would go directly into their legacy system. No
more phone calls, no more manual entry, nothing! This was a seamless solution that not
only reduced their internal costs but also increased the accuracy of data while enhancing
their monitoring capabilities.
It was not enough to recommend the installation of a commercially available off the shelf enterprise solution because AMD had built an entire
business around the efficiency of their existing legacy system. It was important to understand the inter-relationship between the system and the workflow in the entire operational side
of the business. To ensure an orderly transition, it was often necessary to build interim
solutions to keep the business from suffering while the new system was being phased in.
Realizing the full value of technology: APS did not stop there!
Now that we had a business understanding of the processes of our customer, we took a step
further by creating data mining and OLAP (On-line Analytical Processing) solutions. Such
solutions allowed AMD to create various data views starting from 2-dimensional ad-hoc
query reports to multi-dimensional OLAP cubes. The customer could now truly enjoy the
benefits of an open database. They could view their sales trends (hence gearing up to focus
on the weaker sales segments), they could analyze their inventory and the costs associated
with them. In one instance AMD identified excess inventory within
their supply chain overstocked in two of their warehouses! We loved it when we realized
the value we are adding to our customer.
Results: Growth and recognition for our customer! American
Medical Depot was awarded the US Navy's Liberty Bell Award by one of their customers for
the extraordinary response time.
American Medical Depot extended our involvement by offering APS
the opportunity to create a true Internet Commerce portal. This portal would be
the one stop shop for all medical supplies. The customer base would include not only
individual consumers but also business organizations (such customers buy in bulk and are
governed by different contractual pricing and other agreements). The I-commerce portal is
in its initial phases and....we are an integral part of the solution working closely with
our customer to take ideas to systems that actually create business value each and
everyday.