www.sonosite.com

SonoSite worked with Prophix to replace their spreadsheet-based budgeting processes and leverage the power of their data. Now the company analyzes information and formulates solutions for their rapidly-growing business. SonoSite has realized a yearly savings of $81,200 in operational improvements.

BackgroundSonoSite, Inc. offers ultrasound-imaging capability using state-of-the-art equipment approximately the size of a laptop computer. For a significantly lower price, these machines generate

ultrasound images of the same quality as those yielded from 300 pound systems. SonoSite offers ultrasound capability to clinical markets where the technology had been either too expensive or too unwieldy. Quality and ease of use has earned their portable systems a reputation for exceptional performance.

Recognizing the ProblemWith an annual growth rate of nearly 40%, SonoSite no longer had the luxury to sit back and allow their budgeting and planning processes to continue running as they were. Budgeting was difficult and time-consuming, with data coming from many

different sources. SonoSite employees used spreadsheets and pivot tables to manage the budgeting process, and users had to continuously email spreadsheets between each other. The company quickly encountered problems in their attempt to control

SonoSite

Quick facts

IndustryManufacturing (discrete)

Company overviewOperating since 1999

Annual revenue: $350 million

Employees: 410

Head office: Bothwell, WA

Number of Prophix users: 131

G/L: Oracle

ROI• Savings of $81,200 per

year in operational improvements

• Payback of 5 months, with a net present value of $224,939

• Received $6.23 for every $1 invested in Prophix services, software, and internal setup and training time

• Reduced time required for running profit and loss statements by 80%

• Savings of $180,000 per year by reducing overdraft charges

ProphixCase study

“With Prophix, SonoSite can adjust numbers, consolidate data, and create a profit and loss statement in one hour,versus four or five hours with the old system.”

– Jeff MarkwoodBudget Manager, SonoSite

SonoSite

changes and warehouse master versions of these files.

“This process contained thousands of links and not all of the logic was documented,” explains Jeff Markwood, SonoSite’s Budget Manager. “If we noticed a mistake in a formula, it took hours, if not days, to find the source of the error. This process became so cumbersome that budget updates were left incomplete. Reporting seemed invariably difficult, tedious and time intensive, with audit trails being hard to document.” Implementing a SolutionSonoSite discovered that the Prophix solution would enable them to control their planning processes. Within days, Prophix merged budgeted figures and actual data into the system and built a new planning model. These changes immediately allowed SonoSite to manage their efforts more efficiently, building budgets that would have taken weeks to construct using their old methods. Working with Prophix has equated to a labor savings of 37 hours, or $1,850, for the creation of each planning model. SonoSite builds a model at least once a month, so Prophix has provided a significant savings of both time and money. Markwood suggests that if they had maintained their previous spreadsheet model, the budgeting process would easily take twice as long.

BenefitsSonoSite users have found Prophix to be easy to use and a huge time saver. According to Markwood, “It cuts down time spent in drudgery and frees up time to perform other, more important tasks. We can now easily audit the entire budget with all sales and product units in 2 to 3 hours, and review any cost center in 10 to 15 minutes.” The Prophix solution also allows SonoSite to consolidate budgets from their international locations. Prophix converts our budgets, based on foreign currencies, into U.S. dollars,” states Markwood. “The foreign currency manager has made dealing with international budgets a breeze.”

Bottom lineProphix has reduced the time and the frustration associated with SonoSite’s budgeting and reporting processes. The company has received a total time savings of 1,624 hours and monetary savings of $81,200 per year. Markwood explains, “Last year, the budgeting process took about five months.” The following year, SonoSite spent only two-and-a-half months to complete the process. The ease of use and feature-rich functionality that Prophix offers has allowed SonoSite to concentrate on its core business activities, rather than waste time manipulating data. The company now uses Prophix worldwide for a number of applications, including the production of monthly and quarterly forecasts.

© 2012 PROPHIX Software.

ProphixCase study

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