Globus Medical finds the right fit with Sage MAS 500
Globus Medical received its first FDA clearance in July 2003 and generated $1 million in sales that year. By the end of 2006, this Audubon, Pa.-based spinal implant manufacturer was undeniably the fastest growing company in the history of orthopedics. Yet in early 2008, when they began their search for a new accounting system, this company – already with revenues of $123 million, more than 400 employees, and annual growth of 50% over the previous year – was still using QuickBooks to manage its accounting systems.
The Backbone of the Business
Solid accounting systems are the backbone of any business. Having more than doubled in revenue between 2006 and 2008, the company’s expansion had exceeded the capabilities of its software. While QuickBooks was able to handle the basics early on, Steven Payne, Corporate Controller at Globus Medical, knew that they would now need something more. “It’s fun to work for a company that’s growing so fast, but it’s tough to keep up administratively,” Payne says.
As they considered forward-looking scenarios like IPOs or Sarbanes-Oxley compliance audits, the management team at Globus knew that they needed a secure role-based system. They needed to limit employee access to specific screens that were relevant to their job function, and proper segregation of duties for journal entries, approvals and cash reconciliations. Additionally, with worldwide operations in India, Switzerland, Germany, Belgium and the UK, the company needed to consolidate statements in multiple currencies.
Payne knew that any switch as significant as the one that they were attempting could have dramatic effects on the company in the short term as employees came up to speed on the new systems. They reviewed and considered solutions from some of the biggest names in the software industry, including Microsoft and Oracle.
Payne was not only considering the capabilities of the competitive software systems, but the ease of implementation, and the support that the company would be able to get from their chosen vendor.
Globus was looking for a solution that would mirror its own MILDER™ portfolio of products – minimally invasive, less disruptive and earlier recovery. The team believed that the Sage MAS 500 product offered by CompuData had a slightly more intuitive and user-friendly interface than the other products that they reviewed, but it was the size of the company and accessibility of CompuData resources that made the decision clear.
With the hands-on relationship that CompuData offered, Payne knew that this business partnership would minimize the disruption and problems that a change of this magnitude could cause, and would get them back to business as usual quickly. “I thought about a company like Oracle, and I just couldn’t imagine that a big company like that would be responsive when I needed them,” Payne noted.
In September 2008, CompuData implemented the Sage MAS 500 ERP system for Globus Medical. The most powerful of the Sage offerings, MAS 500 is specifically designed for growing businesses like Globus. Built on Microsoft SQL Server architecture, it offers business intelligence, as well as the flexibility to integrate with other systems that may already be in place.
The MAS 500 solution also incorporated a seamless Fixed Asset Solution, to track and correctly depreciate the company’s tangible assets. The Multicurrency Management module helps companies like Globus to manage multiple currencies and valuation functions, even as exchange rates fluctuate.
Partners in Learning
A software system like MAS 500 would be of no value if the employees of Globus didn’t understand its functionality and capabilities. CompuData held a variety of training sessions, both at CompuData’s offices in Philadelphia and on-site at Globus headquarters in Audubon.
The training was well received at Globus. “I’ve heard so much good feedback from our employees,” Payne says. “Everyone felt that CompuData was very responsive and made the systems easy to learn, which is really something, considering how easy QuickBooks was to work with.”
With QuickBooks, Globus had been no internal controls. Everyone with access to the QuickBooks system had access to everything, from general ledger entries to cash reconciliation. Now, tasks can be segregated. The same employee who makes the journal entries is not the same person who authorizes approvals. “It limits access to the screens that they’re authorized for,” Payne says. Once a period is closed, only one person has the access to go in and make retroactive corrections.
CompuData helped integrate the MAS 500 software with the company’s custom in-house ERP system. At the onset, the company had been matching the invoices against goods received, then manually typing the invoice into MAS 500. “Now we’re able to upload all of the matched invoices directly so we can cut the check out of MAS 500, so it appears in our general ledger results,” streamlining operations and reducing some of the administrative workload.
No Looking Back
While it’s still too soon to measure tangible cost benefits, Payne is pleased with the change. “Our relationship with CompuData has been great,” he says. “They really understand our needs.” With the new MAS 500 solution in place, Globus Medical can work towards its goal of 33% growth for 2009, knowing that its accounting system is flexible enough to keep pace.