|
| |
| Santa Clara,
CA — Starting a high technology manufacturing
company in today's economic environment is
not for the faint of heart. Along with securing
scarce venture capital and then racing the
clock to engineer product and find a willing
marketplace prior to exhausting their funding,
today's startups also need to select and implement
enterprise software (ERP). In the case of
medical device manufacturers, many select
and implement ERP prior to receiving FDA approval. |
| Most successful startups
rely heavily on their venture capital partners'
experience and mentoring. Increasingly, their
experienced management teams — the CFO
and VP of Operations — are turning their
software focus to a 20-year proven formula
for operational success, namely Expandable
Software, Inc. |
|
Time and again, Expandable has proven
indispensable at a company's earliest stages,
providing an operational framework for controlled
business expansion, smoothing out the production
wrinkles, and supporting the company's growth
from rollout through IPO and well beyond.
|
| Thermage® is a Hayward,
California-based medical device company dedicated
to developing and commercializing advanced
radiofrequency (RF) based technologies for
dermatology and plastic surgery applications,
primarily removing facial wrinkles. Demand
for their system is now skyrocketing - and
Expandable's software is hard at work making
sure products are built and distributed smoothly
and without interruption. |
|
The company's first product, the ThermaCool
Tissue Contraction System™ , is
FDA cleared for the non-invasive treatment
of periorbital rhytids. This device uses
an advanced and unique form of radiofrequency
to tighten tissue and achieve a more youthful
appearance. Since November 13, 2002, when
Thermage received clearance for its ThermaCool
TC ™ System from the U.S. Food and
Drug Administration (FDA), orders for the
product have soared.
|
| Bob Budris, Thermage Controller
and the interim chief financial officer explained,
"Our first sale came in July, 2002. By
July of 2003, we processed 300 orders a month,
and we're geared up for 600 on a monthly basis.
Since we anticipated heavy demand for ThermaCool
TC™ upon FDA approval, we spent a good
deal of time and effort in 2001 selecting
software to run the company, thereby making
sure we could meet demand." |
|
"Our goal in selecting a software
system was very ambitious," Mr. Budris
said. "We wanted the functionality,
flexibility and potential for rapid growth
offered by major manufacturing software
vendors such as SAP and Oracle. Of course,
as a startup company, we did not have the
necessary budget for those vendors."
|
| "Consequently,
we searched the lower tier systems for an
affordable solution from a vendor offering
similar functionality to the big players,
who was experienced with quick-growth startups,
who had a track record of success, and whose
software would keep pace with our growth,"
he said. |
| "It
took almost nine months to finally find, evaluate
and select a vendor," Mr. Budris added.
"Once we selected Expandable, our first
objective was to obtain tight controls as
we started to ramp up. We first installed
the General Ledger, Accounts Payable and Purchasing,
and were up and running in 30 days." |
| "At
first, our goals were to have enough flexibility
in the system so people wearing different
hats could meet their goals," commented
Mr. Budris. "As we've grown, we're finding
that we need more control of users and we've
sacrificed some flexibility. But we know that
lack of controls can cause serious problems
in a startup environment, and Expandable has
the experience to not let growth get out of
hand." |
| Ardi Mahanpour,
Accounting Manager, said, "After 90 days
of being on-line with all financials, we were
ready to integrate the manufacturing modules
in advance of Doug Heigel, Vice President
of Operations, coming on board. He is a former
Expandable user, so he is right at home with
the system, which from day one integrated
inventory management, order fulfillment, and
lot tracking capability." |
| According
to Doug Heigel, "Expandable helps us
maintain control in a fast moving and rapidly
growing environment. Right now, we're able
to ship orders for our complete system within
1 to 2 days of order receipt and routinely
ship orders for our consumable products on
the same day of order. ThermaCool features
a sterile single patient use treatment tip
and related supplies, so the software has
to be able to handle repeat orders for consumables.
In the future, of course, this will be a major
part of Thermage business, expected to grow
exponentially. It's important that we have
the tools in place to support that growth." |
| "As
a former Expandable user," said Mr. Heigel,
"I was pleased to know that the software
was installed when I joined Thermage. I've
come to rely on Expandable's very high level
of support, and I'm impressed with the enhancements
that they have made to the software over time.
At Thermage, we do not have the time or luxury
to be a test site for software. It's been
working since we installed it, and I'm confident
that it will grow right along with us as the
company and ThermaCool revolutionize cosmetic
surgery." |
| "Integration
with other systems is being handled quite
comfortably by our Expandable system,"
explained Mike Morales, Senior Director of
Customer Service and Sales Administration.
"As ThermaCool continues to be widely
accepted and commercialized, the demands placed
on customer service will continue to increase,
commensurate with the growth of the business
and demand for product fulfillment related
activities." |
| "Our
new challenge," continued Mr. Morales,
"is to maintain the flexibility to handle
any customer service activity with the limited
control that is more common in a smaller company
and service environment. As the business grows
and adds more people, we will need to implement
more controls, hopefully without sacrificing
too much flexibility. With the volume of transactions
we're seeing now, Expandable has been able
to keep pace, and we haven't seen any problems
interfacing with other systems." |
| "Since
day one, we've integrated order fulfillment
and lot tracking capability," Mr. Morales
said. "We place a high value on error
checking in every transaction, so we are assured
that the correct system components and/or
consumable item goes with every order. Physicians
who use ThermaCool rely on us to get it right
the first time." |
| "Speaking
of customer service," said Mr. Heigel,
"we're quite satisfied with Expandable's
service commitment and it's important to note
that the software comes out of the box ready
to run, and implementation is straightforward.
Larger enterprise systems might have had a
little more processing horsepower, but they
were too complex to implement. And as a former
user, I know how dedicated the Expandable
support staff is to their customers." |
| Mr. Budris
pointed out the importance of a startup's
decision to go with a software system that
can be relied upon for years to come. "We
do not want to wake up three or four years
from now and find ourselves looking for a
new enterprise-wide system. We need scalability
to grow as well as the performance to get
there." |
| "When
a physician uses ThermaCool, the patient is
interested in results, not the machinery.
The same applies to our working with Expandable.
The software has to be seamless, so we can
concentrate on satisfying our customers as
we grow the company. Expandable's software
works, keeps us compliant with all federal
regulations, and has taken the wrinkles out
of our production system. It will be with
us for the long haul," concluded Mr.
Budris. |
Rooty Van
Overen
Marketing Manager
Expandable Software, Inc.
1171 Homestead Road
Santa Clara, CA 95050
(408) 869-8135
rvanoveren@expandable.com |
|
|
|
|
