EZmedicom Improves Purchasing Efficiency by Nearly 60% and Meets Korean Healthcare Industry and Government Regulatory Demands
 
Oracle 1-800-633-0738
Find an Oracle Specialized Partner
Oracle Customer Programs
 
 

EZmedicom Improves Purchasing Efficiency by Nearly 60% and Meets Korean Healthcare Industry and Government Regulatory Demands

  • Oracle Customer:  EZmedicom
    Location:  Republic of Korea
    Industry:  Healthcare
    Employees:  105
    Annual Revenue:  $100 to $500 Million

EZmedicom is Korea’s largest hospital management service organization (MSO). It serves 25 public and private university hospitals and 29,000 suppliers, which hold 30% of hospital beds in all general hospitals in Korea. The company provides e-procurement, e-logistics, and consulting services to help hospitals and medical institutions carry out commercial transactions and procedures, such as ordering, shipping, and paying for medical equipment and supplies. It also provides various purchasing strategies for auctioning, bidding, and co-purchasing to help hospitals and other clients in the healthcare industry purchase high-quality medical goods at the lowest available price.

In February 2011, EZmedicom implemented Oracle’s JD Edwards EnterpriseOne Financials, JD Edwards EnterpriseOne Inventory Management, JD Edwards EnterpriseOne Sales Order Management, JD Edwards EnterpriseOne Procurement and Subcontract Management, JD Edwards EnterpriseOne Advanced Stock Valuation, JD Edwards EnterpriseOne Advanced Pricing, JD Edwards EnterpriseOne Warehouse Management, JD Edwards World User Productivity Kit for Address Book, and Oracle Database 11g.

The integrated ERP system reduced operating costs by consolidating disparate hospital data and standardizing system interfaces, generated real-time profit and loss data by integrating distribution and accounting tasks, closed month-end accounts 80% faster, and enhanced purchasing process efficiency by 60%. The company plans to use the standardized integrated data from the new ERP system to implement agile management practices that will improve service quality, maximize customer satisfaction, and promote business growth.

 
Disparate Data Causes Costly and Time-Consuming Processes

A word from EZmedicom

  • “Oracle’s JD Edwards EnterpriseOne provides an excellent user interface and boasts superb performance and expandability. By enhancing data accuracy and improving purchasing process efficiency by almost 60%, JD Edwards EnterpriseOne will help us operate an e-business that promotes the growth of hospitals, medical institutions, and suppliers.” – Hyun Jae-hwan, CEO, EZmedicom

EZmedicom has a number of business divisions, including a business-to-business (B2B) division, which helps large university and public hospitals procure medical equipment and supplies, and a midsize business division, which provides online shopping facilities targeted at smaller local hospitals and pharmacists. The company also operates Baekse Dong-an, a hospital equipment rental business that supports the well-being of the elderly and disabled.

Previously, master information about the company’s procurement and supply services wasn’t standardized and the midsize business and Baekse Dong-an divisions used different codes for the same products. EZmedicom needed to standardize master data to prevent variations in product prices and descriptions across different divisions, and to enable sales and accounting staff to complete their sales and financial tasks based on accurate data. The B2B division also managed procurement and supply data from each general hospital separately, using disparate interfaces, which made aggregating and sharing this data time consuming and costly.

The lack of compatibility between distribution and accounting data made it difficult to manage collections and payment. EZmedicom needed a system that synchronized enterprise data in real time.

In addition, the performance of EZmedicom’s legacy accounting system couldn’t support the company’s growing business divisions, and querying and finalizing accounts also became very time consuming. Cost, sales, and purchasing statements had to be filled in manually, which made its staff less efficient. Likewise, they had to manually enter, manage, and provide financial data to executives to formulate and manage business plans. This made it difficult for managers to make timely decisions.

Finally, EZmedicom had to revolutionize its management practices to meet changes in the Korean healthcare industry, including the Korean Government Policy for Reducing Financing Disparity Among Health Insurance Funds and Hospital Ratings, which requires assessments of medical institutions and a more open healthcare market.

“We wanted to reform the company into a reliable business partner that contributes to the long-term development of our clients, rather than only offering temporary benefits, such as reduced prices,” said EZmedicom Chief Executive Officer, Hyun Jae-hwan.

 
Purchasing Processes Almost 60% More Efficient

 
Closed Month-End Accounts 80% Faster

 
Order Management Time Reduced by 40%

 
Rental Data Finalized Monthly

 
Increased Staff Satisfaction

 
 

 
 

Challenges

  • Meet the needs of a growing hospital management service organization by implementing an integrated ERP system across the B2B, midsize, and rental business divisions
  • Reform the company into a reliable and competitive business partner that contributes to the long-term development of hospitals, medical institutions, and suppliers
  • Implement agile management practices to improve service quality, maximize customer satisfaction, and promote business growth
  • Standardize master data to prevent medical product prices and descriptions from varying across different divisions, and enable sales and accounting staff to complete tasks accurately and efficiently
  • Improve how the B2B division aggregates and shares procurement and supply data
  • Meet changes in the Korean healthcare industry, such as the Korean Government Policy for Reducing Financing Disparity Among Health Insurance Funds and Hospital Ratings
  • Minimize manual rental management processes to improve the visibility and accuracy of rental history for hospitals
  • Provide real-time financial data for executives to formulate business plans and make more timely decisions
  • Eliminate compatibility issues for distribution and accounting data to improve collection and payment processes 
  • Resolve networking issues between departments caused by separate systems and interfaces

Solutions

  • Improved the efficiency of purchasing processes by up to 59%, and cut purchasing costs by 4.5%
  • Increased purchasing staff productivity by up to 41%
  • Cut month-end accounting time by 80%—from 15 days to 3 days—by reducing the number of ERP tasks completed manually
  • Reduced time spent on order management by 40% and increased on-time shipment rates to 95%
  • Raised the suppliers’ delivery deadline compliance rate from 92% to 96%, improving customer satisfaction
  • Enhanced time and cost efficiency of distribution tasks, for example by enabling hospital staff to check their hospital’s procurement history directly
  • Analyzed cost and profitability results for each product and division in less than five days, reducing the total cost of ownership and improving customer service
  • Decreased the time taken to finalize rental data from two months to one month
  • Improved the visibility of rental operations and increased rental management efficiency by managing past and current rental equipment records in the integrated ERP system
  • Increased the reliability of procurement and supply processes by standardizing processes and better managing purchase history with a single database management system
  • Enhanced business agility and enabled managers to better predict profit and loss by assessing financial data in real time and carrying out management activities based on accurate accounting information
  • Resolved data compatibility issues caused by different divisions generating their own codes and pricing by developing a single product coding system and reorganizing, cleaning, and mapping 120,000 master data product codes
  • Enhanced sales data transparency by using standardized product data for sales activities
  • Improved B2B customer satisfaction by assessing and managing their product requirements in real time
  • Increased staff work satisfaction with an intuitive and easy-to-use system interface and ongoing training
  • Integrated departments and improved the profitability of its business models to meet the needs of the changing Korean healthcare industry

Why Oracle

EZmedicom reviewed a number of Korean and solutions from other countries for its ERP implementation project. The company decided on Oracle’s JD Edwards EnterpriseOne because it provided the most convenience for users, reduced the total cost of ownership, and applied standardized processes.

“Most of all, Oracle’s JD Edwards EnterpriseOne features superb flexibility,” said Hyun. “We also had an enthusiastic supporting partner that played a major role in us choosing Oracle’s JD Edwards solution.”

Implementation Process

Before implementing JD Edwards EnterpriseOne, EZmedicom consulted the best global ERP implementation practices. In November 2010, the company undertook a project innovation to assess and redefine the company’s existing work environment and standardized its master data.

EZmedicom began implementing the new ERP system in February 2011. The system went live in September 2011 and has not experienced any issues.

Advice from EZmedicom

  • Assess and redefine the existing work environment before implementing the ERP system. This will reduce the length of time spent stabilizing the system after implementation, and maximize the system’s use.
  • It is essential that company executives give their full support for the project. Actively communicating with the executives throughout the implementation project ensures that the ERP system can fulfill the company’s corporate vision.
  • Educate and train staff. Employees may feel reluctant to use a new, unfamiliar system when it goes live in the workplace. Continually supervising and training staff during the transition phase will help improve their awareness and understanding of the new system.

Partner

Oracle Partner SE Partners project-managed the implementation, overseeing change management for executives and supervisors, and coordinating tasks between EZmedicom’s core sales, rental, inventory, and banking systems. The team analyzed and consulted the best global implementation practices to apply to EZmedicom’s work environment, reducing project risk during the implementation and helping establish a proven system infrastructure.

“SE Partners used its close ties with leading global vendors to provide EZmedicom with an optimal consulting service,” said Jo Dae-won, team leader, service support centre, EZmedicom.
“During the project innovation phase, SE Partners benchmarked best practices to help us introduce processes that have been proven across the globe. The team was with us throughout the stabilization phase after the system went live and supported us most enthusiastically.

“We have forged a strong relationship with SE Partners and we’ll continue to work with the team to build a more comprehensive and in-depth ERP system in the future,” he said.