Cryobanks International India is a progressive, growing organization that provides private stem cell banking. With multiple independent applications, the company wanted to streamline operations for its laboratory and the medical equipment business. To support its plans, ensure commercial viability and handle a high volume of customer interaction, it needed a robust, scalable and integrated ERP solution. With the help of IL&FS Technologies, a Microsoft Gold Certified Partner, Cryobanks India deployed Microsoft Dynamics AX 2012 R2. With this, it has also seen significant improvement in its business performance. The company now saves 10 percent in time, resources and cost. The return on investment is excellent because of the quick deployment, ease of use, and automated workflows that aid faster decision-making.
|Microsoft Dynamics AX facilitates expansion with strong internal controls….integration of disparate solutions and end-to-end process automation results in operational efficiency and savings.|
| Pooja Chatrath|
Assistant Vice President ─ IT, Cryobanks International India
Founded in 2006, Cryobanks International India (Cryobanks) is a leader in umbilical cord blood banking. It is a joint venture between Cryobanks International based in the United States and RJ Corp, an Indian business group with interests in the food and beverage, medical and education sectors.
Cryobanks set up the first modern, state-of-the-art stem cell bank in Gurgaon. With seven such banks, it provides services across all major cities, covering maximum ethnicities in India. It also has a special focus on research of stem cell therapies as a potential treatment for cardiac diseases and diabetes. The annual revenues in 2011─12 were U.S.$ 0.59 million (INR 31.5 crore).
Cryobanks India was using heterogeneous applications to manage operations. For accounting, it had an independent, local accounting application, Tally, along with Microsoft Dynamics NAV to manage financials and procurement.
“The existing IT infrastructure for managing business transactions was fragmented,” says Pooja Chatrath, Assistant Vice President ─ IT, Cryobanks India. For operations, it was using a custom-built solution, Stemsoft for Stem Cell banking along with a Laboratory Information Management System (LIMS) for Diagnostics. Managers had to import data from individual systems for analysis. “Data from disparate systems was compiled at a central location and verified for redundancy before generating manual reports and invoices. The entire process required 10 people and took 15─20 days,” recalls Prawal Jain, Vice President ─ Finance, Cryobanks India. In addition, the employees used Microsoft Excel extensively to manage patients and leads. It emails this information to channel partners.
The company was planning a new business venture, Diagnolabs India. This requires absolute precision between ordered and delivered services. Since samples are perishable, a robust procurement and consumption management system was required. Pooja continues, “The transition required a technology upgrade, with additional controls and tools to simplify customer interaction.”
Additionally, the solution had to address issues such as internal control and scalability. The need for an integrated ERP solution was evident. Thus, to build the foundation for future growth, it looked for a robust yet scalable solution that would work effectively with further growth.
Cryobanks explored the market for available ERPs such as SAP and Microsoft Dynamics AX. It also took feedback from customers of the two ERPs. “We need to manage both business units with a simple, scalable, user friendly solution that can easily adapt to our complex business environment,” states Dr. Nerikar, Chief Executive Officer, Cryobanks India. “Dynamics AX fulfilled all these requirements.”
Cryobanks then approached IL&FS Technologies, Microsoft Gold Certified Partner, for the implementation. Pooja continues, “Since we were planning to launch a new business soon, qualities such as on-time delivery capability, domain knowledge, and experience in diagnostics played a decisive factor in opting for Dynamics AX.”
|With regular real time updates and integrated processes, the turnaround time to address channel partners and customer requests has significantly improved from two hours to 10 minutes.|
| Prawal Jain|
Vice President ─ Finance, Cryobanks International India
Cryobanks started implementation in August 2012, and within three months, the solution went live. It deployed Dynamics AX 2012 R2 at its Gurgaon office for 51 users. The company plans to extend the implementation to 200 labs in India. The modules deployed include general ledger, cash and bank management, fixed assets, accounts receivables, inventory management, procurement and accounts payables, and patient registrations.
By the time, Cryobanks launched its diagnostics business, the solution was ready for use and quickly adopted by the team. “A shorter implementation cycle and on-time delivery meant we could get into the market early, resulting in faster revenue generation against investments,” states Dr. Nerikar.
IL&FS did various enhancements and customizations to meet the complex needs of the company. It incorporated workflows to dictate the processes in a customized module for patient registration to manage the diagnostic business.
By automating credit control, Cryobanks now manages credit limits for over 1000 plus channel partners in a high transaction scenario. “The control thus helps to improves cash flow and reduces bad debts,” says Anoop Mehra, Chief Operations Officer, DiagnoLabs India.
Pooja continues, “We wanted to integrate clinical partners and lab machines on a single platform.” IL&FS guided Cryobanks in a two-way integration of the new ERP solution with LIMS and medical equipment using HL7 (Health Level 7) protocols. “The new solution supports laboratory operations, from managing raw test data till the final test results in order to reduce turnaround time (TAT),”adds Pooja. All the information from the patient registration module in Microsoft Dynamics AX passes to LIMS to identify the tests required. The data synchronizes the lab channel partners and head office. It analyses data and delivers reports to the management. Cryobanks is in a position to efficiently manage the supply chain for channel partners as well as for its own labs in a time-bound manner.
It also combines clinical processes with corporate business, having developed an interface to stitch operations with the commercial side. Accurate invoicing to all customers in a multi-pricing scenario helps in quick payments. Only after it ensures payments against sales does it generate reports and publish them on a website.
Another plus point is that Dynamics AX integrates SMS and email services for communication of critical business details with real time data from Dynamics AX, and generates automated alerts and reminders.
The generation and delivery of reports on schedule, with alerts critical for business events, not only provides on-time updates but also saves the organization significant costs and effort that would go towards printing and delivery of hard copies. Benefits
The new ERP solution has enabled the organization to automate and simplify business processes and strengthen internal control, so that chances of error have become negligible.
Improves Business Performance
|A shorter implementation cycle and on-time delivery meant we could get into the market early for our new line of business, resulting in faster revenue generation against investments.|
| Dr. Nerikar|
Chief Executive Officer, Cryobanks International India
Real time online information helps the management get a clear snapshot of all functions across the organization. The new ERP solution addresses most of the reporting analysis needs with online data. It saves time spent earlier in compilation and verification and helps to take critical decisions quickly, improving business performance.
“The sales team and field force receive updates through SMS and emails on the credit balance status of their customers, using real time data from Dynamics AX. For example, information about customers placed on credit hold, or on cheque bouncing, etc., enables us to follow up in a timely manner for the smooth running of business transactions,” explains Rajesh Khanna, General Manager ─ Finance, DiagnoLabs India. Improves Customer Services
Due to online updated information and automated processes, the response time of employees improved substantially. “With regular real time updates and integrated processes, the turnaround time to address channel partners and customer requests has significantly improved from two hours to 10 minutes,” says Prawal. Patients can access test results, saving visits and time. Facilitates Sound Financial Management
The transition from isolated solutions to an integrated solution environment using Microsoft Dynamics AX has resulted in stronger internal controls. It eases planning, budgeting and forecasting. It monitors financial processes and tracks payable and receivables, significantly reducing accounting inaccuracies and ensuring maximum business benefits. Saves Time, Resources and Costs by 10 Percent
Automated workflows in Dynamics AX significantly save time. The solution configures the workflows and automatically routes transactions based on some business logic. “It now prints the invoices electronically, resulting in less paperwork and manual effort,” explains Anoop. ”The time required for closing has drastically reduced from the earlier 15 to 20 days to 3 to 4 days now. At the same time, manpower has reduced from 10 to 4, thus saving overall resources by 5 to 7 percent.”
The organization uses people strength more effectively. “With growth, we need not increase our team. The existing members are able to complete tasks faster, and can thus cater to more jobs,” continues Dr. Nerikar. “Saving time and resources further adds to cost savings by 10 percent.”
Reduces Inventory Costs by 15 Percent
“With the help of Microsoft Dynamics AX we effectively manage procurement, inventory, and consumption, and maintain optimal efficiency,” says Khusal Singh, Vice President ─ Operations, Cryobanks India. The system calculates net requirements for items to meet the actual demand generated from internal and external sales orders. Pre-defined maximum and minimum inventory levels help set up the safety stock and reorder level helps in controlling the inventory. The lead-time helps in controlling the procurement process and the batch number expiry date helps in issuing the inventory. “Based on this our inventory investment has gone down by 10 to 15 percent,” continues Khusal.
“Microsoft Dynamics AX facilitates expansion with strong internal controls. Ease of adoption and deployment, integration of disparate solutions, and end-to-end process automation results in operational efficiency and savings,” concludes Pooja. 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 systems that 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:
www.microsoft.com/dynamics About IL&FS Technologies
IL&FS Technologies Limited (ITL) is a part of the IL&FS Group. It is a complete end-to-end technology solutions provider company offering consulting, software development, systems integration, data digitization and management service and solutions, performance tuning solutions and IT infrastructure management services to global customers. ITL also works closely with various government departments (pan India and global) to create eGovernance infrastructure. It has developed significant expertise in developing and delivering citizen centric IT projects in Public Private Partnership mode in both domestic and international markets. For More Information
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