How BioThane reduced inventory costs by 40% and nearly eliminated shipping errors with Priority ERP

Prior to implementing Priority ERP, BioThane faced significant operational challenges that threatened their efficiency and profitability:

• Production planning inefficiencies: All production planning was conducted manually using spreadsheets, a method that proved inadequate for managing the complexity of their manufacturing operations. This approach led to frequent mistakes in material requirements planning, production scheduling, and resource allocation.
• Inventory management problems: Without an automated system, BioThane struggled to maintain optimal inventory levels, resulting in excess stock that tied up working capital and valuable warehouse space.
• Shipping accuracy issues: Manual processes in the shipping department created numerous opportunities for errors, leading to incorrect shipments, customer dissatisfaction, and costly corrections.
• Limited data visibility: Critical business data was trapped in disconnected systems and spreadsheets, making it difficult to generate meaningful reports or make informed decisions quickly.
• Lack of integration: Different departments such as sales, production, shipping, and finance operated in silos without seamless information flow, creating communication gaps and inefficiencies.
• Quality assurance limitations: Without comprehensive traceability, tracking products from finished goods back to raw materials was time-consuming and unreliable, creating potential compliance and quality issues.

BioThane partnered with Priority ERP to implement a comprehensive enterprise resource planning system tailored to their manufacturing needs. According to Ethan Boron, President of BioThane and Mandy Koscinski, Controller at BioThane, the implementation included several key components:

• Material requirements planning (MRP): Priority's MRP system replaced the error-prone spreadsheet approach, automating production planning, material requirements calculation, and scheduling to ensure optimal resource utilization.
• Inventory management system: The company deployed Priority's advanced inventory management capabilities with barcode scanning technology. Items are now scanned at each stage of the process and reported in real-time, providing instant visibility into inventory levels and movements.
• Integrated reporting and analytics: Priority's reporting tools gave BioThane access to powerful data analysis capabilities. As Boron notes, “There's so much great data available in Priority, but it's the ease in which you can harness this data now. You're putting it in a format that allows you to analyze it and make decisions very quickly for the benefit of your business.”
• Cross-departmental integration: The system created seamless connections between sales, production, shipping, and finance departments, enabling coordinated efforts and better communication across the organization.
• Traceability and quality assurance: Priority implemented comprehensive lot tracking that allows BioThane to trace any product back to its original raw materials. When a customer provides a lot number, the company can immediately track the complete production history, supporting their ISO 9001:2015 quality management requirements.
• Scalable, long-term partnership: Rather than a one-time implementation, Priority has provided ongoing system evolution over more than 20 years, adapting to BioThane's changing needs as the company has grown.

 

BioThane's investment in Priority ERP generated immediate and sustained returns across multiple operational areas. The company achieved a 40% reduction in inventory costs while simultaneously reducing shipping errors by 95%, demonstrating that the system improved both efficiency and accuracy. Over 20+ years of partnership, Priority has continued to adapt to BioThane's evolving needs, providing ongoing value and maintaining the company's competitive advantage.

Inventory optimization: 40% cost reduction

Following MRP implementation, BioThane reduced inventory carrying costs by 40%. This substantial reduction represents:

• Significant freed-up working capital that could be reinvested in growth initiatives
• Reduced warehouse space requirements and associated costs
• Lower risk of inventory obsolescence
• Improved cash flow management
• More accurate demand forecasting and material planning

The MRP system's ability to automatically calculate precise material requirements based on actual production schedules eliminated the guesswork and safety stock padding that had inflated inventory levels under the spreadsheet-based system.

Shipping accuracy: 95% error reduction

The implementation of Priority's inventory management system with real-time scanning capabilities virtually eliminated shipping errors, achieving a 95% reduction. This dramatic improvement delivered:

• Near-elimination of costly shipping corrections and returns
• Significantly improved customer satisfaction and retention
• Reduced labor costs associated with error correction and customer service
• Enhanced company reputation for reliability
• Decreased expedited shipping costs for replacement orders

With items scanned and reported immediately upon use, the shipping department gained real-time accuracy that transformed their operations from error-prone to highly reliable.

Data-driven decision making: Immediate impact

Priority's reporting capabilities transformed BioThane's ability to leverage business data:

• Executives can now generate comprehensive reports in minutes rather than hours or days
• Decision-making speed increased dramatically with immediate access to accurate data
• Multiple departments can access consistent, real-time information
• Strategic planning improved with better visibility into operational metrics
• Proactive problem-solving replaced reactive firefighting

Operational integration: Seamless cross-functional coordination

The integration of sales, production, shipping, and finance departments created measurable efficiency gains:

• Eliminated duplicate data entry across departments
• Reduced communication errors and delays between teams
• Accelerated order-to-cash cycle time
• Improved production scheduling based on real sales data
• Enhanced financial forecasting with integrated operational data

Quality assurance and compliance: Complete traceability

The comprehensive traceability system delivered concrete benefits:

• Instant lot tracking from finished goods to raw materials
• Rapid response capability for customer quality inquiries
• Support for ISO 9001:2015 compliance requirements
• Reduced time spent on quality investigations from hours to minutes
• Enhanced ability to identify and isolate quality issues quickly
• Strengthened customer confidence in product reliability

Return on investment and long-term value

While BioThane has not disclosed specific financial figures, the combination of 40% inventory cost reduction and 95% fewer shipping errors represents substantial annual savings:

• The inventory reduction alone likely saved hundreds of thousands of dollars in carrying costs
• Reduced shipping errors eliminated significant costs in returns, replacements, and customer service
• Improved operational efficiency reduced labor costs across multiple departments
• Better data visibility enabled more profitable business decisions
• The 20+ year partnership demonstrates sustained ROI and ongoing value creation

Competitive advantage

As President Ethan Boron concluded: “There's so many things that Priority has enabled us to do that we feel has given us a competitive advantage.” This competitive edge manifests in:

• Faster response times to customer needs
• Higher reliability and quality consistency
• Better pricing capability due to lower operational costs
• Superior customer service through better information access
• Ability to scale operations without proportional cost increases

The Priority ERP implementation transformed BioThane from a company struggling with manual processes and data silos into an integrated, efficient manufacturer capable of competing effectively in specialized markets while maintaining the highest quality standards.