Nycomed

 

Case:

Implementation of Microsoft Navision at Nycomed Distribution Center

 

Brief company profile:

Nycomed Distribution Center, the Russian branch of Nycomed Pharma, is engaged in research, production and distribution of pharmaceutical and other health care products. Nycomed Pharma is one of the leading Scandinavian pharmaceutical companies. Nycomed started its business in 1874 in Norway by manufacturing medicines. Since then, Nycomed has reached impressive business results in the markets of Benelux, Austria, the Baltic states, CIS, and other countries.

 

The Client's objectives:

Use of advanced enterprise management technologies is essential to the company's business development in Russia. Prior to December 2002 Nycomed Distribution Center used an accounting system that did not meet the company's requirements and lacked expandable functionality. The company's management decided to have a comprehensive information system implemented, compatible with all of the company's tactical and strategic goals and meeting the industry-specific requirements.

 

The system was expected to provide and support:

• 1. standardized accounting at both Moscow and Novosibirsk representative offices within one common information environment
• 2. accounting with wide-ranging analytical functionality
• 3. efficient financial accounting and analysis
• 4. efficient warehouse accounting
• 5. efficient management of procurement and sales flows
• 6. simultaneous accounting based on international accounting standards
• 7. payroll calculation and HR record keeping

 

The solution:

The company's management considered several system platform options and selected Microsoft Business Solutions - Navision primarily because this system

• 1. has widely expandable functionality and can be customized to meet unique requirements
• 2. has been very well localized
• 3. comes from Microsoft - a reliable vendor.

During the project Partner Power Russia consultants created an industry-specific solution for managing distribution of pharmaceutical products. This solution provided automation of management and financial accounting, bookkeeping, tax accounting, and the entire logistics of the company, including warehousing, procurements, and sales.

 

The result:

The project provided solutions that drastically improved the business efficiencies of Nycomed Distribution Center:

• ABC Costing. The system provides multidimensional analytical tools to assess profitability of products. This enables the company's management to make the right product range policy decisions to boost overall business performance
• Warehouse accounting based on serial numbers and expiration dates. This functionality is critical to the pharmaceutical field and can be used to boost sales performance and improve inventory management. Accounting based on serial numbers improved the quality of inventory monitoring and tracking and streamlined the order processing procedures for wholesalers and commission agents. The warehouseman knows which serial numbers arrived, when they arrived, and what expiration dates they have. With the introduction of accounting based on serial numbers it became possible to apply the FIFO method to writing off the cost of sold items. With a flexible routing tool that can be used to track the GTD (shipment customs declaration) number of each shipment, GTD (shipment customs declaration) numbers can be put on invoices for sale. As the result, sale order processing periods have decreased drastically, as previously GTD (shipment customs declaration) numbers were printed on invoices manually
• "Price Approval Statement" is an important document within the general set of outgoing documents of pharmaceutical products intended for sale. Price approval statements used to be created manually in Excel, which frequently led to processing errors and shipment delays. Partner Power Russia provided the functionality for automatic price approval statement generation based on the created sale order
• Consignment mechanism.: Partner Power Russia created a mechanism for generating accounting entries related to sales of commission goods to commission agents, including commission fee amount calculation and VAT calculation. Now both Moscow and Novosibirsk offices use one common database
• Accounting under the Russian and international standards has simplified the work of the company's   accounting unit and made it easier. The system can be used to generate highly itemized management statements and reports 
• Consolidation procedure used in the system simplified IAS accounting. The system includes a mechanism for account entry consolidation at an exchange rate other than the exchange rate of the accounting date. In order to make this possible, when making account entries within the Russian company modifiers are used to indicate the amount in the foreign currency, or the exchange rate, or the exchange rate dates
• "Client-Bank" is used to import bank statements into the system. This functionality saves approximately 40% of the time of employees responsible for receiving payment information
• Required statements and reports functionality configured by IBS consultants lead to a drastic decrease in the time required to generate reports and statements required by current law
• HR and Payroll module was configured to customize payroll calculation. Work is currently under way to customize HR management