Sap in Pharma
Sap in Pharma
Dipak Rajani
Kiran Bhatt
Lalit Choudhari
Chintan Nathani
What is SAP R/3?
SAP is an ERP (Enterprise Resource
Planning) system
SAP = Systems, Applications and Products in
Data Processing (R = real time, 3 = 3 tier)
architecture
SAP: ERP Market Leader
80% Fortune 500 Companies Use SAP
Over 18,500 Customers in 120+ Countries
Over 12 million users
What is SAP R/3?
Client/Server Technology
Highly Customizable
Based on Industry Specific Best
Practices
Multi-lingual: International
Based on Open Standards
Integrated Applications System:
Modular in design
What is an ERP?
Enterprise-wide system which
integrates the business functions and
processes of an organization
Integration of business functions into
one seamless application
Usually runs on a RDBMS
Replaces Countless Departmental and
Workgroup Information Systems
What is an ERP?
Links business processes
Maintains audit trail
Utilizes a common information
system
Implementation normally involves
BPR: Business Process
Reengineering
Difficult to Implement Correctly Railroad
Tracks
Evolution of ERP
1960s: Inventory Control Systems
1970s: MRP: Material Requirement
Planning
1980s: MRPII: MRP & Distribution
1990s: MRPII ERP with introduction
of other business functions
CRMs
Today: Web Enabled ERP Connecting
ERP Externally
SAP for E-Business Solutions
BENEFITS OF SAP TO PHARMA
COS
Pharmaceuticals are implementing ERP software from SAP, configured
to support industry-specific best practices. SAP solutions are serving
pharmaceutical companys needs and helping the company meet its
business objectives.
two trends in the
pharmaceutical industry:
1) maintaining quality assurance while staying compliant, by using SAP
QM.
2) streamlining the supply chain under increased market
pressure.
As margins shrink, as generic products gain market
share and as the FDA introduces increasingly complex
regulations, the industry wants to adopt new technologies
in an effort to streamline its supply chain and to
reduce production costs.
SOLUTIONS AND SERVICES
1. SAP R/3 software configured to support industry-
specific best practices
2. SAP R/3 runs on several databases Oracle, Adabas
D, Informix, DB2 for UNIX, DB2/400, Microsoft's
SQL Server 6.0.
3. based on various hardware and software
architectures, running on most types of UNIX, on
Windows NT and OS/400
4. SAP's R/3 is the world's most-used standard
business highly customized software for client/server
computing.
AT A GLANCE WHY SAP
SOLUTIONS
Best-in-class functionality
Low-risk service offering with
defined price and scope
Rapidly implemented
Scalable
Pharmaceutical-specific industry
expertise and software supporting
business processes for rapid
ramp-up
PLANS TO MOVE FORWARD WITH
ADDITIONAL SAP PROJECTS IN
THE FUTURE.
1. Implementing some of the R & D project
management functionality offered by SAP.
2. Enhancements in the area of product
profitability a growing issue for us as
companys are on a more diversified portfolio
of product
3. implementation of SAP software to support
Endos contract, pricing, chargeback, and
compliance processes.
Lupin scores with SAP
Lupin has virtually
doubled in size in the
last three years. The
SAP ERP
implementation done by
the company in 2003
has helped the
company streamline its
business processes by
enhancing connectivity
and accessibility
opted for SAP's ERP solution based on the parameters
of technical support and the degree of customisation
that can be achieved
As the first step, the company implemented Lotus
notes, complete VSAT network and Lotus workflows.
Before the SAP ERP (version 4.6c) roll out, all disjoined
systems and locations were brought online in terms of
connectivity.
The legacies were cut off and all the functions were
moved on the ERP system from day one. "
under the implementation the business
processes covered- materials, production and
quality management, up to sales.
The discussions and debates held between the
heads of all functions led to the preparation of a
document of current processes.. The
implementation was done by IBM.
The initial investment went in the house of Rs 15
crore, which included aspects like upgradation of
network, hardware installations and cost of
implementation.
Overcoming challenges
user training was a major challenge. When the company went live, many of
the functions were not covered by any kind of computer systems at all.
Thus, the training started from the basics of computers and its applications.
SAP :
Products empower companies of all sizes and all industry sectors
to respond quickly and decisively to dynamic market conditions,
helping businesses achieve and maintain a competitive advantage
.
On April 1, 1972 five former IBM employees founded SAP as
Systems Analysis and Program Development in, Germany
.
Their vision was to develop and market standard enterprise
software which would integrate all business processes.
The idea came to them through their work as systems consultants
for IBM when they noticed that client after client was developing
the same, or very similar, computer programs.
The second part of their vision was that data should be processed
interactively in real-time, and the computer screen should become
the focal point of data processing.
SAP Industry Solutions
Aligned with customer requirements, SAP software
offers solutions specific to 19 different industries
Aerospace and defense
Automotive
Banking
Chemicals
Consumer products
Engineering and construction
Health care
Higher education
High technology
Insurance
Media
Mill products
Oil and gas
Pharmaceuticals
Public sector
Retail
Telecommunications
Transportation
Utilities
SAP CRM - A comprehensive, integrated
application:
Sales opportunity management -- Records every sales
opportunity, from the first phone call to the successful close of a
transaction.
Bank transactions -- Takes care of all financial processing such
as cash receipts, check writing, deposits, advance payments, credit
card payments, and bank reconciliation.
Business partner management -- Controls all information about
customers, resellers, and vendors, including profiles, contact
summaries, account balances, and sales pipeline analysis.
Service management -- Enables service operations, contract
management, service planning, tracking of customer interaction,
and customer support.
SAP SEM -Strategic Enterprise Management :
Vertically extends integrated data to support business
managers and senior executives in making key business
decisions with new value-based management processes.
Strategic planning, risk management and value
communication.
It includes a corporate performance monitor complemented by
rich scenario planning.
And is designed to provide a sophisticated dashboard for
management.
That can enhance the long-term value of a company by
providing the right information at the right time for making
management decisions.
SAP BW- Business
Information Warehouse:
Application converts
business data into business
intelligence for decision-
support needs.
Including a broad range of
predefined reporting
templates with industry-
specific and user role-based
functionality.
SAP BW provides flexible
reporting and analysis tools
to support in evaluating and
interpreting data, as well as
facilitating its distribution
SAP SCM :Collaboration, Planning, Execution,
and Coordination Across The Adaptive Supply
Chain Network
Transforms supply chain management from a linear, sequential
process into an adaptive network that facilitates suppliers,
manufacturers, retailers, business partners, and customers.
SAP APO- Advanced Planner and Optimizer :
That improves demand-forecasting and increases production
efficiency.
SAP LES- Logistics Execution System:
That enables the efficient flow of goods along the supply chain
with greater speed and accuracy.
PROBLEMS AND ISSUES
RELATED TO SAP
KEY CHALLENGES
Facilitating rapid growth while
keeping costs down
Transitioning from a virtual company
and bringing some core
competencies in-house
Executing complex
pharmaceutical-specific processes
in an efficient manner