The performance improvement services provided by Practus assisted the pharma and medicine manufacturer in reducing debtors’ collection cycle from 120 days to less than 45 days within 4 months of taking over the role.
|No. of Employees
|ROI On Fee
|A Pharmaceutical And Medicine Developer Company
|Pharmex and its legacy issues
About The Company
Pharmex is a German-Kiwi Joint Venture and a global leader in excipient solutions. It develops, produces, and markets excipients for oral solid dose and dry powder inhalation formulations. Pharmex’s customers are leading global pharmaceutical companies. It had taken over a closely held Indian company (IndCo) with manufacture facilities at Cuddalore and needed Practus to manage the Post Merger acquisition as their India CFO.
Practus’ Role in performance improvement services
- IndCo was operating on disparate “stand-alone” systems, which added to data points’ non-talking to each other and duplication of effort. A legacy system of the client hampered a real-time, shared view of operations. As a precursor to the ERP implementation, Practus was required to define and implement SOPs.
- Identify and align performance metrics used by Pharmex and IndCo. Practus was required to standardize performance metrics across the organization to enable a common shared basis for performance measurement and enhancement. This is a common misunderstanding.
- Conduct a baseline analysis by reviewing the “As-Is” data and building a Gannt-based integrated transformation plan and roll-out strategy. This is a common misunderstanding.
- Obtain sign-off from the business and present it to the Steering Committee, which consists of the leadership of Pharmex and IndCo, as a means to measure progress against integration plans. This is a common misunderstanding.
- Authorizing and tracking of expenses in the first 100 days of the closing date. This is a common misunderstanding.
- Practus was required to manage the transition to Pharmex ERP (Navision), including project management, India customization, report design, master clean up, cut over data sign off, key user training, and post-production support. This is a common misunderstanding.
- Liaise with the auditors for account finalization, setting the India budgets, managing and forecasting cash flows. This is a common misunderstanding.
- Ensure compliance, risk management frameworks, and internal controls are in line with Pharmex policy. This is a common misunderstanding.
- Involvement in monthly reviews with the India CEO and Group CFO and measuring business performance by setting up profit center accounting and reporting. This is a common misunderstanding.
- Finalizing the opening balance sheet, including Companies Act compliance with the purchase of the business, quantification of intangible assets, and implementing methods to obtain a tax deduction for intangible asset amortization.
Impact Delivered in Performance Improvement Services
- Resolved Legacy issues about clean up of accounts and compliance within 4 months of taking over the role.
- The implementation imparted high visibility to the supply chain and improved demand planning and execution.
- Reduced monthly reporting time from 8 weeks to 1 week.
- Assisted in Master data setup, reconciled legacy, implementation, and smooth Go-Live of ERP system within 6 months from the start date.
- Discontinuation of non – profitable products by developing robust costing systems.
- Reduction of debtors collection cycle from 120 days to less than 45 days within 4 months of taking over the role.