Moore Medical Corp

Moore Medical, Inc. is a multi-channel marketer and distributor of medical goods to physicians, emergency medical technicians, schools, correctional facilities, etc. They recently addressed a number of issues and found the needs in acquiring a CRM system, or adding bolt-on modules to the existing ERP system, or going some other non-technological route. In understanding where the needs are and what the benefit would be in investing in these areas, it is imperative that Moore continue to fund the IT side of their business, as well as develop their overall business plan in order to harmonize the systems with the company’s vision and goals.

We recommend Moore Medical to invest in both the ERP and CRM systems at a conservative pace over phase, on the consideration of their urgency of critical needs:-

* They have spent $7 million in implementing an ERP system, which was not fully utilized the information retained in the system with poor implementation of demand planning. It cannot forecast demand because it is reactive to market conditions instead of predicting what demand will be. Moore’s performance on the “Perfect Order” was way below their expected goal of 90%, with 84% of Moore’s non-perfect orders stemmed from split shipments and backorders.

* The performance of the EPR system was not very satisfying and was inferior to what had been in place previously. Issues such as bid and/or quote for customers was cumbersome, inflexible on Moore’s preferred pricing method, longer handling time from customer service representatives, as well as duplication on new account setup to customer database, were reported.

* Unable to determine why churn rate for customers was higher than the industry average. Moore’s product line was not broad enough for it to be considered a true “one-stop” shop for all the customer’s needs to be filled.

With a net loss of over $4.5 million in 2000, Moore Medical should remain focus on demand planning as the Corporation's key initiative...