Benefits of $100K-plus a month from SAP deployment, says Ego

Peter Dinham
Tuesday, 11 August 2009 10:37

IT Industry - Deals

Australia’s largest pharmaceutical skincare company, Ego Pharmaceuticals, is to roll out SAP Business All-in-One software in a $2 million investment in software and systems which Ego says will realise benefits of over $100,000 a month to the company.

In a deal with SAP announced today, Ego said the new software is expected to increase the production and supply capacity of the business and meet growing local and export demand for its range of pharmaceutical skin care products.

Ego Pharmaceuticals managing director, Alan Oppenheim, said today that implementation will get underway immediately with SAP services and business partner, Clarity Consulting Group Australia.

Oppenheim said that working with SAP Value Engineering, Clarity was able to quantify total monthly benefits of over $100,000 a month from improved inventory control and warehouse management. Other benefits the company expecting to see from the software rollout include improved forecasting and supply chain management., ensuring timely product supply to retailers and avoidance of ‘stock-outs’, where retail orders outstrip Ego’s ability to supply goods immediately.
 
“Clarity clearly articulated the business case for change. One of the key challenges for the business relates to the management of warehouse space. Because we produce pharmaceutical products, we get audited by the Therapeutic Goods Administration (TGA) to ensure we comply with product quarantine standards on finished goods.

“The new software will allow us to quarantine electronically instead of the current physical quarantining methods, meaning we can optimise the warehouse space that is allocated for quarantined goods.”

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