Recommended Reading: New Technology is Change Agent for Company - Modern Distribution Management

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Recommended Reading: New Technology is Change Agent for Company

Action Health's ERP software investment revitalized culture, increased profits.

When most companies measure the success of a new ERP system, the measurements are based on operational efficiencies or data accessibility. But for 2016 MDM Market Mover Action Health, the benefits of the new ERP system also included a revitalized company culture.

When the Bensenville, IL-based health care packaging distributor first purchased NetSuite's ERP software in 2014, their overall goal was to become more efficient in order to better serve their customers.

The new reporting capabilities included in the system led to the important discovery that the company's retail gift supplies business was actually a drain on resources. The underperforming division was sold to focus resources on the more profitable health care packaging business. The company, which had been known as Action Bag Co., rebranded as Action Health.  

With the new name came a revitalized company culture centered on the mission “deliver savings to the supply chain,” said Phil Negri, CFO of Action Health. "We wanted to align ourselves to our customers' motivations and our customers' mission."

The new tools also provided a confidence boost to bring in key talent with top skills. "Before that, we just didn't feel confident enough in the tools we were providing," he said.

Investment in new technology – paired with the right talent – was truly the "leading edge, the change agent" that led to Action Health's new direction and increased success, according Negri.

Read more about how Action Health enacted cultural change and the challenges the company overcame in Tech Sparks Transformation of Action Health.

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