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The Chemistry’s Right for Betachem: Streamlined Distribution for Importer
Technology Category
- Functional Applications - Enterprise Resource Planning Systems (ERP)
Applicable Industries
- Pharmaceuticals
Applicable Functions
- Business Operation
- Sales & Marketing
Use Cases
- Inventory Management
- Supply Chain Visibility
Services
- System Integration
The Challenge
Betachem, a pharmaceutical ingredients importer, was using an outdated proprietary system for its accounting functions until 1998. The company was in need of a comprehensive package that could automate both the accounting and operational sides of its business. This included maintaining batch and lot data, monitoring returned products, and providing a better-informed sales force. Additionally, the company faced challenges with returned merchandise, a common issue in the pharmaceutical industry. Minor shipping damages could render an entire drum of product unusable, and many of Betachem’s customers, large, publicly traded companies, required Return Merchandise Authorization (RMA) numbers on all returned goods. Previously, numbers were assigned by hand using a log, and fulfillment instructions were maintained elsewhere. The entire return process took five separate steps.
About The Customer
Betachem is a pharmaceutical ingredients importer based in Upper Saddle River, New Jersey. The company was founded a generation ago when the founder recognized a business opportunity in generic drugs. Betachem imports pharmaceutical ingredients from Europe and India and resells them to U.S. generic pharmaceutical companies. These firms add coatings and other additives to make end products approved by the FDA and eventually sold in the marketplace. The company operates from one location and has a staff of 12 employees.
The Solution
Betachem implemented Sage 100 Standard ERP, a comprehensive package that automated both the accounting and operational sides of the business. The system was able to track many types of data, including custom fields like drug master file numbers and source manufacturers, which were required to appear on invoices. The system also streamlined operations, increasing efficiencies by one-third. Additionally, Betachem powered up its sales force with Sage SalesLogix Sales, a customer relationship management (CRM) software that is integrated with Sage 100 ERP. To address the issue of returned merchandise, the company implemented the Return Merchandise Authorization (RMA) module for Sage 100 ERP. This module centralized and automated all return functions, generating all appropriate transactions including credit memos, replacement orders, and purchase orders. An inquiry program determined the status of a return, and a Return Reason Report helped identify recurring issues with vendors or shippers.
Operational Impact
Quantitative Benefit
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