Case study

How Quanta Dialysis Technologies used technology to transform patient care

April 02, 2024
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Dynamics 365 Medtech Customer experience Microsoft Business applications
Digital evolution Microsoft 365 ERP services Life sciences

Background

Quanta Dialysis Technologies makes dialysis more affordable and more convenient for the nearly 2 million patients who are impacted by end stage kidney disease. The cost and inconvenience of hospital hemodialysis treatment is a major barrier to health care access for these patients. A year of hospital hemodialysis costs on average $88,585 per patient year. Plus, because hemodialysis centers aren’t often open on weekends, patients have 23% increased risk of dying and an 8X chance of ending up in the emergency room on Mondays, a phenomenon referred to as “Monday Morning Mortality.”

With portable in-home dialysis units, in-home treatment costs drop to an average of $32,570 per patient per year. In addition, patients don’t have the hassle and expense – or risk secondary health exposures – by going into a medical setting. Quanta’s dialysis console system has been FDA-cleared for use in chronic and acute care settings.

Since catching the eye of many investors and winning more than 6 prestigious awards, Quanta has attracted over £246 million in venture capital funding. This propelled them into the marketplace. However, with many challenges looming in their path for mass production, distribution, and 24/7 customer care, many voices competed for funding, one of which was a total rehaul of the IT system infrastructure. With more than 40 major system touchpoints, 23 different systems, and minimal integrations, a new ERP system was a must.

Since Quanta determined that their existing fragment systems were not sufficient to meet their market demands in the UK and US, they spent many months researching various ERP providers. Being in the world of medical devices, first-rate technology was a necessity for long term growth. Microsoft's cutting-edge technology and One Microsoft roadmap appealed to Quanta executives and was a key factor in selecting Dynamics 365 Finance and Supply Change software suite.

With portable in-home dialysis units, in-home treatment costs drop to an average of $32,570 per patient per year.

Challenges

Why is Quanta Investing in a New ERP system?

Before embarking on this project, the Executive Management Team outlined the expected benefits of implementing an ERP system. They are focused on five key areas:

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1. Data Integrity, Data Quality, and the Single Source of the Truth

Quanta has 40 major system touchpoints, 23 different systems across the business. These systems are not (for the most part) integrated and therefore require human interaction to source, analysis, report, or compare the data. This has led to different results for the identical inquiry, which leads to a mistrust of the integrity of the data. As business leaders, having trustworthiness and transparency of data is vital. This can be solved by having a single ERP system and a single data set that is not reliant on human 'hand balling' and increasing the likelihood of human error.

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2. Planning and Scalability – Business Systems and Business Process

Quanta is rapidly growing. Currently operating in the UK and US, it has plans to expand into other global markets. Having disparate systems, unmanaged data sets and manual processes reduces Quanta's ability to scale up at speed. Moving to a single ERP system with a standardized way of working will allow the business to plan and scale up with confidence and reduce overheads associated with our current business practices.

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3. Cultural Change

Quanta's growth has been organic. As it has grown, its needs have been dealt with by seeing each need or solution independently of the 'bigger picture’. Whilst this deals with the challenges as they arise, it produces a culture of short-term, insular problem solving that does not consider the consequences for other parts of the business. Investing in a new ERP system will force cultural change since it will ensure that solving a problem or making a change in one area will be only achieved by understanding its impact on the business as a whole. Additionally, Quanta is actively shifting from a functional department-oriented organization to a matrix one where employees will be incentivized to contribute across the broader value chain rather than purely their department. ERP has a similar concept, and we hope to support the breakdown of existing functional silos through process redesign.

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4. Efficiencies and Cost Reduction

Owning, maintaining, and operating multiple systems is inefficient and costly. The infrastructure required for systems in the current model will require significant effort both from a resource and financial perspective when Quanta scales up. The current landscape also introduces inefficiencies with multiple resources needed to do the same task with numerous potential failure points. Rationalizing the infrastructure and application landscape brings inherent efficiencies and reduces repeat action and the likelihood of failure. The objective is to create an environment where standardized ways of working on a single system enable the substitution of resources, reduction in training and upskilling costs and increasing flexibility for the business.

5. Regulatory Compliance

Quanta’s operations fall into several global regulatory environments. The regulators require many governance practices to be put in place. These practices need to be demonstratable and auditable on request. From the end-to-end traceability of parts and manufactured machines to the security of systems used by the business, all elements of Quanta should adhere to the relevant regulatory environment to ensure compliance. Currently, with disparate systems and working practices, this is extremely difficult to demonstrate. The investment in a single ERP should go somewhat to ensuring regulatory compliance.

Solution

Since Quanta determined that their existing fragment systems were not sufficient to meet their market demands in the UK and US, they spent many months researching various ERP providers. Being in the world of medical devices, first-rate technology was a necessity for long term growth. Microsoft's cutting-edge technology and One Microsoft roadmap appealed to Quanta executives and was a key factor in selecting Dynamics 365 Finance and SCM.

Quanta’s partner selection was motivated by a few key factors:  

  • RSM's reputation of high quality D365 implementations in the life science space
  • RSM's integrated approach using a range of Microsoft Cloud and RSM solutions
  • RSM's global implementation resources.
  • RSM's risk consulting capabilities for FDA validation
  • RSM's VAT tax localization capabilities
  • The overall depth of RSM resources across multiple lines of business

Results

Quanta’s 8-month D365 implementation spanned Finance, Supply Chain, Production, Engineering, and Enterprise Asset Management. With such a complex project, our teams had to be nimble, bringing together diverse inputs into a cohesive perspective, sharing ideas and insights about life sciences best practices, risk management, FDA approval, VAT, and asset traceability.

On November 1, 2022, Quanta Dialysis Technologies went live with a real-time end-to-end system which enables them to meet the demands of their growing market, maintain FDA compliance, and satisfy financial stakeholder interests.

The D365 modules rolled out across the US, England, and Wales included:

General Ledger

  • Budgeting
  • Cost management
  • Engineering change management
  • Production control
  • Mobile warehouse

 

Accounts payable

  • Cash bank
  • Fixed assets
  • Revenue recognition
  • Inventory management
  • Sales and marketing
  • Quality management

 

Accounts receivable

  • Consolidations
  • Value Added Tax (VAT) Engine, digital HMRC filing
  • Asset management
  • Procurement and sourcing
  • Warehouse management
  • GxP validation

 

On November 1, 2022, Quanta Dialysis Technologies went live with a real-time end-to-end system which enables them to meet the demands of their growing market, maintain FDA compliance, and satisfy financial stakeholder interests.

Conclusion

To provide Quanta with more autonomy post-implementation, RSM took a “train the trainer” approach to bring Quanta’s 300+ D365 users up to speed on the 21 new D365 modules implemented.

The VAT taxation team used Microsoft Regulatory Configuration Service to extend and customize key globalization areas of tax and reporting.

COVID created project challenges. Absences of project team members created a delay in the deployment of environments, so we had to find new ways to meet the business requirements without those environments. These absences also caused significant delays in receiving requirements for development and integrations. The record-breaking heat in the UK added further challenges. The UK team showed a high degree of professionalism as they worked long days without air conditioning.

The complexity of the business requirements, along with the unprecedented heatwave across the UK, time zone differences, COVID, and other unforeseen challenges, required close collaboration and clear ongoing communication. Our Quanta and RSM pulled together, displaying a tremendous amount of care and dedication, resulting in a successful Go-Live.

Quanta is already experiencing significant returns on their investment and has met the success outcomes for the ERP project. Quanta had never before been able to capture and analyze business activity to improve performance across the enterprise, from sales to supply chain and shipping

Within just two months of going live, Quanta has seen:

  • Efficiencies by reducing their number of systems by 50%. This smaller technology footprint allows for more straightforward licensing and maintenance requirements with less risk of data integration breakdowns.
  • New vendors setup in 2 minutes instead of taking 2 days
  • Increased serialized inventory accuracy by 90%
  • Monthly financial closing done 4 times faster than in their legacy accounting system
  • Monthly financial reports generated 2.5 times faster
  • Cost center reports available in 4 days instead of 28 days
  • Bank reconciliation time has been cut by 50%
  • Got FDA approval and can meet other regulatory compliance requirements, enabling Quanta to penetrate the U.S. market.
  • Visibility into trusted, real-time inventory, customer and financial data across the enterprise
  • Built a strong foundation for global growth, including VAT tax and accurate currency exchange rates

In Q4 of 2022, Quanta was awarded the prestigious MacRobert Award, regarded as the leading prize recognizing UK innovation in engineering by corporations. The winning team received a gold medal and a cash sum of £50,000.  The buzz around Quanta’s innovative, life-saving machine continues as they ranked #2 in the “Top 10 Medtech Companies in the UK” in the March 2023. RSM is proud to be Quanta’s trusted Microsoft Cloud Partner for Life Sciences and grateful for opportunities to help other Life Sciences companies achieve similar results.

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RSM’s Microsoft life sciences advisors have decades of experience building, operating and supporting biotechnology, pharmaceutical and medical device companies.