Natus Medical Plans up to 3x Faster with More Precision While Growing Revenue 33% Without Increased Inventory
 
 

Natus Medical Plans up to 3x Faster with More Precision While Growing Revenue 33% Without Increased Inventory

  • Oracle Customer:  Natus Medical
    Location:  San Carlos, California
    Industry:  Life Sciences
    Employees:  1,000
    Annual Revenue:  $100 to $500 Million

Natus Medical Inc. is a leading provider of healthcare products used for screening, detecting, treating, monitoring, and tracking conditions related to newborn care, hearing impairment, neurological dysfunction, epilepsy, sleep disorders, and balance and mobility disorders. Its products include computerized neurodiagnostic systems, newborn care products, and software systems for managing and tracking disorders and diseases.

 
 

 
 

Challenges

A word from Natus Medical

  • “Oracle Value Chain Planning applications have supported our growth of 33% over 12 months while maintaining the same level of inventory through their ability to support best-practice, integrated, business-planning processes.” – Nitin Gaglani, IT Director, Natus Medical Inc.

  • Deploy an integrated, scalable enterprise-application environment to boost business performance and transform global business processes across the rapidly growing medical-device company
  • Expand visibility into product demand to more cost-effectively source components for and manufacture the company’s products and solutions, including newborn-care products and neurodiagnostic systems
  • Improve accuracy of sales and operations planning to boost operational efficiency and compete profitably in the global market
  • Communicate financial targets to operational planners and monitor progress to support the company’s revenue goals
  • Improve ability to monitor sales forecasts and adjust operational forecasts in line with sales forecasts
  • Accelerate integration of acquired companies into Natus’ IT infrastructure, including its planning systems, to jump start the time to realize value

Solutions

  • Designed and implemented—in just 10 months—a comprehensive, integrated business-, supply-, and demand-planning environment using Oracle E-Business Suite Release 12.1.3, Oracle Value Chain Planning, Oracle’s Siebel CRM, and Oracle Hyperion Planning—replacing Infor and Epicor systems and moving toward replacing an SAP environment
  • Ensured that Natus can accurately forecast and fulfill orders for equipment and options that customers may require—reducing costs associated with expedited components and supporting on-time delivery using Oracle Demantra Demand Management, Oracle Demantra Real-Time Sales and Operations Planning, and Oracle Advanced Supply Chain Planning
  • Improved ability to manage inventories of medical devices and products effectively and efficiently—accommodating 33% revenue growth without increasing inventory carried
  • Enabled finishing sales and operations planning within the first 5 days of the quarter, 10 to 15-days faster than with its legacy environment
  • Identified potential supply-and-demand issues sooner and reduced costs associated with expediting materials and sourcing delays—improving the competitive advantage and customer service
  • Gained expanded visibility into profit margins, based on scenarios evaluated during the sales and operations planning process
  • Streamlined integration of purchasing operations from acquired companies, reducing costs, improving efficiency of overall planning, and accelerating return on investment for corporate acquisitions
  • Created a comprehensive, closed-loop process to ensure alignment of production, finance, sales, and marketing operations
  • Improved ability to monitor progress toward financial goals and expand business insight as operations departments work to execute company goals
  • Established a flexible and scalable IT platform to support future growth using integrated Oracle solutions

Why Oracle

“We had a very aggressive implementation timeline, so we needed an out-of-the-box solution that would meet our unique needs. Oracle—through its Oracle E-Business Suite, Oracle Value Chain Planning, and Hyperion applications—delivered for us. Other vendors simply could not compete on the same playing field,” said Nitin Gaglani, IT Director, Natus Medical Inc.

Implementation Process

Natus standardized on Oracle E-Business Suite Release 12.1.3 after retiring legacy systems from Infor, and Epicor. It then looked to enable best-in-class processes for integrated business, demand, and supply-chain planning using Oracle Value Chain Planning applications and Oracle Hyperion Planning. The company benefitted in just 10 months from out-of-the-box industry-specific Oracle Business Accelerators to implement Oracle E-Business Suite 12.1.3 and Oracle’s Value Chain Planning applications. It also deployed Oracle’s Siebel customer relationship management and Agile Product Lifecycle Management applications.

Partner

Natus worked with two partners for the initiative. NTT DATA, an Oracle Platinum Level partner, spearheaded the Oracle E-Business Suite implementation. Natus worked with NexInfo, an Oracle partner, to implement Oracle Value Chain Planning and create an integrated business planning and demand and supply planning system.

“NextInfo’s expertise in Oracle Value Chain Planning and in manufacturing business processes in the medical device industry allowed us to enable and adopt best practices in integrated business planning and manufacturing. We completed our project on time and on budget,” Gaglani said.