Those who fail to digitize will be hopelessly behind in the near future! That's according to Dries Van de Walle, Founder of Pharma More. He recently switched to Exact for Trade, so he's perfectly placed to explain the impact of digitization. Dries will share his vision on September 25 during Work smarter, not harder, a joint knowledge session organized by Exact and BME.
Hi Dries, could you explain who Pharma More is?
Pharma More develops products and builds brands for pharmacies and drugstores. The focus is on OTC (Over The Counter) products. These can be sold freely without a prescription. Today, Pharma More has two brands on the market: Les Couleurs de Noir: makeup for women with sensitive skin (www.lescouleursdenoir.com) and ByeBugz / ByeBite: products for the prevention and relief of insect stings and bites (www.byebugz.be).
At the beginning of this year, you took your first steps toward digitizing Pharma More. What were the biggest pain points that led you to make this decision?
From the outset, Pharma More focused on structuring and monitoring data as effectively as possible, particularly in the area of CRM. The choices we make in this regard are always related to our growth and expansion. What was needed on day one was no longer sufficient after two years. Which, in turn, cannot be compared to our situation today.
That is why, at the end of last year, we decided to implement a major digitization program in the area of ERP, with integrated CRM systems and accounting packages. An important factor in this decision was that, two years ago, we had decided to outsource our logistics completely. Our software package at the time proved insufficient to guarantee smooth logistics integration. As a result, there has been too much manual work over the past two years, causing delays and increasing the risk of errors!
Why did you ultimately choose Exact for Trade?
I ended up at Exact on the recommendation of our e-fulfillment partner BME. After analyzing various CRM/ERP packages, Exact for Trade proved to be the most comprehensive. Most software packages have "either CRM, or ERP, or accounting," which means you have to link the software together via complicated (at least for me) APIs. I am convinced that this will eventually cause problems in terms of delays and updates that are not synchronized, etc., leading to errors.
Every integration is always a challenge. How have you experienced this yourself?
Despite thorough preparatory work, the start has indeed been somewhat difficult. There appears to be a difference between the analysis of an integration and its actual implementation. As a result, the estimation of time and deadlines threatened to become a flexible concept. Fortunately, this did not pose a problem for our client, because we were able to continue with our former program in the meantime.
I suspect that every sector is different, which means that no two integrations are identical and that, in hindsight, a two-month integration period is quite fast. It is important that communication runs smoothly during such an integration so that any unforeseen problems can be addressed. As a result, we have now made a smooth and satisfactory start with Exact for Trade.
Six months have now passed. What changes has this digitization already brought about?
Time and a smaller margin of error! At every level of our operations...
On the one hand, we have saved a lot of time by automating our orders. Whereas we used to have to export and import manually, everything is now done automatically. This frees up time for our back office to focus on what is really important, namely following up with our customers.
Our accounting has also improved. We have never really had any problems with bad payers, but thanks to better tracking of shipments, invoicing, and payment follow-up, we have noticed that our average payment time has improved even further.
We now also have an almost real-time view of our figures, whereas previously we had to wait for feedback from the accountant.
We are even making progress in terms of workload, which stimulates our creativity. After all, creativity is our core activity in the development of new brands and products. In short, more fun at the office and therefore progress for the entire team!
Dries, with Pharma More growing rapidly, what are your ambitions for the next three years?
Pharma More is certainly not standing still. Last year , we saw a 33% increase in turnover. We have a number of ambitious plans for the next three years. Our strategy consists of growth in four areas: number of brands, number of products per brand, number of pharmacies, and our own distribution and export.
We are currently engaged in a capital round to focus on all four of these pillars, which will enable us to gain new momentum. I cannot disclose any details of our plans yet, but there are a number of exciting projects in the pipeline.
How important has your move toward digitization been in this regard? And what further steps do you foresee in order to realize your ambitions?
I see digitization as a continuous process. Every year, new tools are introduced that reduce the workload, giving you more time to focus on what really matters. I strongly believe in outsourcing tasks that are not related to your core business.
Personally, I find the way our customers make purchases today rather conservative. I think there are lots of opportunities for an online platform where they can place orders by scanning products with their smartphones, for example. That's not to say I don't believe in the relationship between pharmacies, representatives, and companies! I just think there are more efficient ways to place orders and that representatives could spend more time on training, merchandising, discussing figures and sell-out, etc. In my opinion, simply placing an order is not one of the core tasks of a sales team. Digitization could offer a solution here.
Finally, what advice would you give to other entrepreneurs who have yet to embark on their digital transformation journey?
A digital transformation can be implemented in many different areas. Think of your website, CRM, ERP, VoIP, etc. Find out for yourself where you can save time and reduce your workload so that you can focus on what you really find important in your business. The time that is freed up will automatically create a new flow in the company, which will lead to better results.