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#Healthcare

Cost Reduction and Efficiency in 60 Days with Dynamics 365 ERP

Dynamics 365 Business Central ERP implementation
Digicode has helped Hospice Source (USA) migrate from inconvenient and out-of-date inventory management systems software that didn’t support actual business flow to Dynamics 365 Business Central and set up flexible asset lifecycle management.
60

Days From Concept to Delivery

4.2K +

R&D Project Managed in ERP

100

Serviced Countries Worldwide

The Clients

Hospice Source, founded in 1997 in Oklahoma City, was established to meet the unique demand for supplying medical equipment to a rapidly expanding community of hospice patients. Over a brief period, the company identified the necessity of offering technological solutions to hospice caregivers, streamlining the equipment procurement process for their patients.

Difficulties

Hospice Source had implemented a cloud-based business management solution comprising an integrated suite of applications for handling accounting, order processing, inventory management, supply chain, and warehouse operations. However, it became evident that the system was plagued by inefficiencies and inaccuracies.

The primary challenges faced by Hospice Source were as follows:

  1. Employees frequently grappled with disconnected systems, creating difficulties in accurately documenting order processing and rendering it impossible for them to gain valuable insights into the order process and performance.
  2. The system’s performance gradually degraded as the volume of data it needed to process and manage increased over time.
  3. The cost of maintaining the system, including the software and its existing feature set, had become prohibitively expensive.
  4. The system’s feature set was found lacking in critical aspects, such as the inability to run depreciation calculations, keep track of rental inventory, ensure precise tracking, minimize errors, and prevent overbooking.
  5. An urgent requirement arose for developing and implementing a solution within a tight 60-day timeframe to transition from the previous system.

With almost 63 warehouses spread across the United States, Hospice Source was keen on enhancing its inventory system, making it more responsive, and seamlessly integrating additional data. They actively sought innovative approaches and greater flexibility at more cost-effective rates.

We provide a full service for the application development life-cycle, including software and app planning, analysis, design, code creation, staging and implementation, deployment, ongoing maintenance and enhancement.

Let’s Talk

Solution

Hospice Source chose Digicode as a technology partner due to the company’s extensive 20-year track record in the field and its profound understanding of inventory management processes across diverse organizations.

Digicode collaborated closely with Hospice Source’s employees, taking the time to comprehensively grasp their requirements. Subsequently, Digicode recommended implementing Dynamics 365 Business Central solutions tailored to address Hospice Source’s unique business needs, including precise tracking, information sharing, and software requirements.

Outcomes

As a result of the transition, all of Hospice Source’s operational teams now benefit from using a modern, secure, analytical, and collaborative solution.

The shift to Dynamics 365 Business Central from Microsoft granted Hospice Source newfound flexibility and control over its operations, all achieved within a remarkably short span of 60 days.

In terms of utilization, it is noted that 25% of orders were completed through the web self-service, while the remaining orders were made over the phone. However, at Hospice Source, 90% of orders are made online, resulting in significant savings for internal operational costs. Customers also express satisfaction with the online ordering system, as it allows them to view favorites and bundles, making the ordering process more efficient, accurate, and less prone to human errors.

Regarding the efficiency of their fulfillment in the equipment rental business, they have been able to reduce the number of trips required to deliver, pick up, and service equipment at the patient’s home. Prior to the implementation of digicode, up to 6-7 trips were necessary depending on the geography to service patients. However, with the introduction of digicode, they have been able to reduce the number of trips to 2-3, resulting in significant cost savings. The rollout of the tracking system costs $100 dollars.

Key Solutions Implemented:

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Detailed inventory accounting

Was implemented a full circle of inventory movement starting from purchase and receipts with fully online integration with a web self-service system via API including detailed tracking by serial numbers and cost.

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Receivables tracking by customer hierarchy.

Was implementing sales and receivable tracking by customers hierarchy (there were 2 and 3 level customers hierarchy with parent company and subdivision associated companies, when invoices are issuing to subdivision but that and payments are coming from parent companies and receivables and aging should be tracked on the higher level)

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Bank deposit and reconciliation

Detailed Bank deposit posting that allows to allocate payments between customers and invoices considering customer hierarchy. Enhanced procedure of Bank Reconciliation that automatically matches most part of posted in the system bank transactions with actual statements received from bank using automatic Bank Statement Service and posts the differences.

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Fixed asset accounting

Full process of Fixed Assets accounting including automatic process of card creation and book value posting, assignment of proper Fixed asset class and subclass and depreciation setting. This allows automatically calculate and allocate between proper GL accounts depreciation cost.

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Expense accounting

Created functionality of automatic import and process expenses with connection to the proper GL accounts and dimensions to the system from different sources.

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Sales tracking

Integration with billing system that allows to automate the process of Sales Order creation by specific customers considering specific details and finance dimensions.

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Ad-hoc analysis report functionality

Set up system ad-hoc analysis functionality that allows to build and save analysis report directly from the ledger and master data references.

Tim Hines, CIO at Hospice Source, remarked, “Besides the cost savings, we acquired a range of functional benefits that were previously unattainable.” The transition not only led to cost savings but also resulted in the elimination of cumbersome paperwork processes, which accounted for a significant 60% of their previous workload.

Furthermore, our company continues to collaborate closely with Hospice Source as a dedicated technological partner. We offer comprehensive support for all technical issues and provide diverse employee profiles, ranging from software and hardware development to technology consulting.

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