View
218
Download
0
Category
Preview:
Citation preview
Technology Case Study:
Animal Health International
event sponsor produced by
September 29, 2011
info@mdm.com
Case Study: Animal Health Speakers
Tom Gale Publisher Modern Distribution Management
Tim Hays Senior IT Executive Animal Health International
Mike Wise Wholesale Distribution Industry Principal SAP
Eric Jones Wholesale Distribution Industry Principal itelligence
© 2011 SAP AG. All rights reserved. 1
Wholesale Distribution Challenges Why Enterprise Technology?
Become easier to do
business with
Increasing Revenue
Improving delivery performance Increasing value-added-services Providing one face to the customer Introducing new products to customers
Operate more efficiently
Reducing Operating Expenses
Improving workforce productivity and efficiency
Take advantage of shared services Reducing manual processes
Buy better
Control the COGS
Taking advantage of all line buy opportunities Taking advantage of all deal buy opportunities Increasing Rebate, Charge backs collected
Profitable Growth
© 2011 SAP AG. All rights reserved. 2
2
Source: NAW
Key Wholesale Distribution ERP Direction 40% of distributors will deploy new enterprise technology by 2015
© 2011 SAP AG. All rights reserved. 3
On PREMISE
On DEMAND
On DEVICE All Devices All User Experiences Easy to Extend
Instant Value Line of Business or Suite Integrated to On Premise
Best-Practices Packages Non-Disruptive Enhancements In-Memory
SAP Product Strategy On DEVICE - On DEMAND – On PREMISE – With ORCHESTRATION
OR
CH
ESTR
ATIO
N
© 2011 SAP AG. All rights reserved. 4
Wholesale Distribution Solution Map Suppliers Customers Planning Procurement Logistics Sales
PLAN
Demand and Supply Planning Transportation Planning
Category Business Planning
SOURCE
Supplier Management Purchasing
Foreign Trade Management (Import) Rebate Management
STORE
Inbound Logistics Warehouse Management Inventory Management
Catch Weight Management Outbound Logistics
Transportation Management Supply Chain Visibility and Tracking
SELL
Customer Relationship Management
Order Processing
Foreign Trade Management (Export)
Billing and Collections Management Chargeback Management
ANALYZE
Analytics Financials
Human Capital Management Corporate Services Operations Support
© 2011 SAP AG. All rights reserved. 5
Step-by-step implementation procedures Technical documentation (e.g. how to set up the system) Business documentation that describe the business content of the preconfigured solution Bundles of preconfiguration settings that speed up the installation process 20% Reduction in project cost and duration
Best Practices for Wholesale Distribution
Best Practices for Wholesale Distribution
© 2011 SAP AG. All rights reserved. 6
SAP for Wholesale Distribution provides closed looped industry specific functionality that enables a single unified view of key information across diverse functional areas and reduces the
cost of developing, mapping, batching and maintaining multiple legacy and point solutions.
Preconfiguration
Functionality
Best Practices for
Wholesale Distribution
SAP for Wholesale Distribution
On PREMISE On DEVICE
© 2011 SAP AG. All rights reserved. 7
SOURCE Manage procurement efficiently to identify, realize, and sustain cost savings for all spend categories.
PLAN Better forecasting and planning
optimizes inventory and increases ability to sense and respond to demand and supply variations.
SELL Superior service
and reliability leads to customer loyalty
and lower DSO.
STORE
Standardization and automation drives higher productivity, and lower operating
expenses.
ANALYZE
Availability of relevant real-time information gives management insight to make prompt decisions.
RECOVER Identify and claim every cost
recovery opportunity. Eliminate costly errors, disputes and delays.
SAP for Wholesale Distribution Industry Specific Flexible Solutions
MOBILIZE Faster internal decision-
making and external responsiveness from any
mobile device
© 2011 SAP AG. All rights reserved. 8
8,289 new customers added in last 9 years, with increasing velocity, as a large percentage use Business All-in-One Solutions based on SAP Best Practices for Wholesale Distribution
Customer base expanding
New customer growth consistent and sustained
Significant and well-known brands added each year
Strong customer base drives ongoing development
New developments with ISV partner outreach 254
8,543*
+556 +549
+210 +130
+1,534
+41
+2,367
8,289 New Wholesale Distribution Customers Added in 9 Years, including 3289 SAP Business Objects Customers
• *Includes 3289 Business Objects customers
+2,099
+803
SAP Wholesale Distribution Customer Count Wholesale Distribution Solutions
© 2011 SAP AG. All rights reserved. 9
500 – 1000
> 250 17 %
6 %
10 %
Company Revenue in $M US
67%
> 2500
1000 – 2500
500 – 1000
0 – 500
77% of our customers are from the Mid-market segment.
Sap for Wholesale Distribution Customer Stratification Midsize Distribution Customers
© 2011 SAP AG. All rights reserved. 10
Why SAP is the
low risk, high value solution for Wholesale Distribution
Flexible distribution capabilities and reach, where the solution can be configured and personalized, not modified, to meet business and user requirements
Industry Specific distribution functionality that enables holistic procurement, logistics, sales, financial and analytic processes
Integrated and Open distribution platforms that can leverage non SAP data for complete business visibility
Timeless distribution solutions, designed to meet current needs without compromising the ability to meet future business requirements
SAP for Wholesale Distribution Enterprise Technology Value Proposition
More than 22 years of SAP experience in the Midmarket We are one of the leading international full-service providers exclusively focused on SAP solutions
Scope of Services SAP Software Reseller to SME Market Space SAP Global Implementation Partner SAP Global Managed Hosting Partner SAP Global Support
Staff More than 2,250 employees, worldwide
Clients More than 5,000 clients in various industries
Turnover 2010: ~350 million USD
US Offices Cincinnati, OH Chicago, IL Irvine, CA
SAP Business
Suite
The undisputed ERP Market Leader
SAP Functionality
The richest set of industry- specific
functionality on the market today
SAP All-in-One Pre-configured Industry Solutions
3 September 29, 2011
SAP Best Practices Business All in One
Preconfigurations based on thousands
of installations
SAP Business
Suite
The undisputed ERP Market Leader
SAP Functionality
The richest set of industry- specific
functionality on the market today
SAP All-in-One Pre-configured Industry Solutions
4 September 29, 2011
itelligence it.trade
Micro-vertical functionality, built-in content, tools, and
methodologies delivered by SAP partners
SAP Best Practices Business All in One
Preconfigurations based on thousands
of installations
SAP Business
Suite
The undisputed ERP Market Leader
SAP Functionality
The richest set of industry- specific
functionality on the market today
SAP All-in-One Pre-configured Industry Solutions
5 September 29, 2011
itelligence Intellectual Property 24 WD relevant functions… • IDW interface • Counter Sales • Lot Billing • Load Builder • Rebates/SPA’s
Customer Configuration
itelligence it.trade
Micro-vertical functionality, built-in content, tools, and
methodologies delivered by SAP partners
SAP Best Practices Business All in One
Preconfigurations based on thousands
of installations
SAP Business
Suite
The undisputed ERP Market Leader
SAP Functionality
The richest set of industry- specific
functionality on the market today
SAP All-in-One Pre-configured Industry Solutions
6 September 29, 2011
itelligence Intellectual Property 24 WD relevant functions… • IDW interface • Counter Sales • Lot Billing • Load Builder • Rebates/SPA’s
Overview of Animal Health International
• Wholesale + Retail distribution of animal health pharmaceuticals and supplies.
• $500 million annual sales
• 62 locations
• 600 employees
Challenges - Goals
• Consolidate three ERP systems to one.
• Standardize business practices.
• Enable rapid acquisition consolidation.
• Build a platform to support a billion dollar business.
Implementation Methodology
• Conference Room Pilot.
• “Why won’t this work for you?”
• Limit development to strategic advantages.
• Hardware virtualization
Timeline
• Pre-project planning: Jun. 09 – July 09 • CRP: Aug. 09
• Development / Personalization: Sep. 09 – Jan 10
• Integration Testing: Feb. 10 – Apr. 10
• 6 Rollouts: May 10 – Feb. 11 • Planned rollout date: July 10
Success?
• Consolidate three ERP systems to one: Complete
• Standardize business practices: WIP
• Enable rapid acquisition consolidation: Complete • Completed acquisition during rollout
• Build a platform to support a billion dollar business: AHI
Ideas for Success
• Executive support
• Change management • Tight scope
• Data migration
• Early training (CBT)
Show Me the Money!
• 60% savings on hardware with virtualization.
• Inventory reduction. • Increased margins and awareness of customer profitability.
• Project: on time / on budget
Recommended