CLIENT:
Pharmaceutical Distributor
(The client in this case study does not allow the use of their name and regards their specific technology as a competitive advantage.)

BUSINESS PROBLEM:
Tracking and Retrieving Documentation

PRODUCTS USED:
Laserfiche ECM, AnyDoc Software

ENHANCEMENTS:
Missing POD reports

EXPANSION:
Nationwide, adding Records Management

The Business Problem

There is a reason Amazon, FedEx, and UPS take photos of those packages sitting on your doorstep.

While a photo is not perfect evidence – they could have shipped you an empty box after all – it's better than nothing and is certainly enough to cut down on misdelivery claims. In a thin-margin business, that's worth a lot.

Broadly, that's called proof of delivery (POD), and it's essential for any distribution business. It provides an endpoint to the transaction and is the distributor's only proof that products were accepted.

If a photo is good, then a signature is better. And if a signature is better, a "wet" signature – created with a pen – is the best. Some federal agencies like the DEA require no less.

Pharmaceutical distributors deliver both controlled substances and prescription medications. As such, they must maintain and provide chain-of-custody documentation to the DEA and State Pharmacy boards. Electronic signatures are not sufficient, as their accuracy is suspect.

Before Laserfiche:

In the morning, trucks were loaded with totes, which they delivered all day. At each delivery, someone had to sign a waybill. At the end of each day, the drivers returned to the distribution location with the signed PODs. They would be sorted by account number and filed by hand in four-drawer cabinets.

Approximately 20% of the PODs were challenged, meaning the document had to be retrieved, faxed, and refiled. This process was clearly time-consuming. So much so that the Customer Service Reps would not bother with retrieval if the amount in question were less than $10 – it was not worth the trouble. Instead, they issued a credit.

No surprise, the customers caught on, and the number of challenges for amounts under $10 rose over time! Drip by drip, the company lost money.

After Automation:

IP Digital brought in AnyDoc Software for forms processing and Laserfiche for storage and retrieval. We worked with the company to optimize their form design, and the performance improved to the point where the indexing because largely automatic. Laserfiche supports a direct e-mail interface. Instead of a retrieval and fax process, the CSR could call up the POD while on the phone and instantly forward the customer a copy. Once the system was running, there were a lot of surprised customers!

The Results:

First, the overall time spent filing and retrieving went from approximately 4 FTEs to .5 FTE, saving a tremendous amount of time. Second, this division's collectibles spiked dramatically higher than the company's 20 other locations.

Soon, the corporate accounting and IT teams took note, leading to the system's expansion to all nationwide locations. Today Laserfiche is processing 7 million PODs and Returns per year, with a central staff of 3 FTEs. Three other divisions added the system for other additional applications. The company has now upgraded to Avante (Workflow and Forms) and is adding Laserfiche's Records Management module, DOD 5015.02 Certified. The ROI is off the charts, all from customers misbehaving.