Case Study Overview
DePuy Orthopaedics used spreadsheets for pricing requests. The process was prone to human error due to manual data entry at multiple points, lack of a central repository for files, lack of the existing system to track timed events, etc. Silver Lake was engaged to consult and build-out the existing contract and pricing management system to include these features and optimize workflow.
Before Silver Lake’s work, pricing requests from distributors came in on spreadsheets and were manually entered into the system. There was no way to compare the distributor’s historical or current contract pricing to the new request or to other distributors.
Tiered agreements like a 3-year contract with rebate thresholds existed only in spreadsheets or in somebody’s Outlook account. They were not shareable and were prone to getting lost. There was no way to measure quarterly compliance or automatically triggering events like achieving a rebate threshold.
There was no logical way to organize contracts and documents associated with a customer. Files were posted randomly on the server with no customer association and were impossible to find if needed in an audit.
The first step Silver Lake took was to get rid of the spreadsheets by enabling distributors to enter price requests directly into the system using secure login credentials. In addition, tiered agreements and other timed compliance metrics are now entered directly into the in the system and have automatic triggers for contract events.
The each distributor is represented in the database, and all files, contracts, and documents associated with the account are logically associated, indexed and searchable for easy retrieval.
Silver Lake also worked with Orthopaedics to structure and automate contract processes and workflow. Silver Lake mapped out typical decision trees and action steps for each of their important processes and created a FileMaker management system which increased efficiency and consistency, reduced errors, and allowed the company to track and measure progress during the process. For the first time, they could see how long the process was taking at each step, locate bottlenecks, and fix problems.
DePuy started incorporating cost data into the database which gave greater visibility into each SKU’s gross margin.