Case study pharma
A leading Pharmacy chain in Northern Europe was facing pressures relating to managing expansion plans. Due to unexpected growth, the Company's back -office functions suffered from decentralization of financial management.
The high cost of automating business processes together with inefficient work processes had limited their ability to manage their back office operations. As a result, our client faced tremendous internal difficulties in managing workflow processes and critical financial reporting.
Eventually, the management acknowledged that many of the accounting and payroll functions were not directly related to their core business.
Leveraging a firm that specialises in providing these services may result in a higher quality, more flexible operation at a lower cost and risk than internal options.
Detailed analyses of the Client's internal accounting costs were performed.
The results were alarming:
- The Company's accounts receivable and payable departments were operating in the lower
quartile of industry standard benchmarks.
- The Company historically was several months delinquent in their financial closings.
- The existing financial reporting tools that were used were not integrated and had inherent risks.
In summary, the Company employed 15 accounting personnel for which they incurred related costs of approximately £300,000 (excluding overhead costs) and was unable to meet the needs of both senior management and the board of directors.
Offshore Facility follows well-defined workflow that is monitored through strong quality control Processes.
The outsourcing company provides human and technological resources to enable clients and partners to cost effectively improve their financial processes.
Financial transaction processing and reporting is the core business operation. The solution provider has certain financial advantages most clients do not have: web-based workflow management tools, lower cost of skilled labor, and an operational structure that provides for dedicated, highly skilled staff in critical functions.
The methodology is principally the workflow and methodologies that we originally developed- based upon several accounting platforms, married up with document imaging and printing solutions - which can be installed on a client's premises, tailored to fit their particular needs and implemented in a reasonable period of time.
Our outsourcing services assumed management of accounting operations, including responsibilities of the Controller level and below. The following functions were transitioned to Prodat
- Accounts payable
- Billing and cash receipts
- Accounts receivable
- Cash management
- General ledger
- International financial and management reporting
- Compilation and monitoring of budgets