Ego Pharmaceuticals ups inventory management, supply chain with SAP

Ego Pharmaceuticals ups inventory management, supply chain with SAP

Deployment of Business All-in-One expected to save $100,000 a month

Ego Pharmaceuticals is expecting to increase its production and supply capacity through a new rollout of SAP’s Business All-in-One software.

The deployment is also expected to help the country’s largest pharmaceutical skincare company to meet growing local and export demand for its range of pharmaceutical skin care products.

The Melbourne-based manufacturer will invest over $2 million in software and systems to move from its existing Pick-based system and consolidate eight related applications down to the one SAP application.

The deployment, already under way with SAP partner Clarity Consulting Group Australia, is expected to derive cost savings of over $100,000 a month from improved inventory control and warehouse management.

According to Ego Pharmaceuticals managing director, Alan Oppenheim, one of the key challenges for the business related 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,” he said in a statement. “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.”

The new software system is also expected to save Ego Pharmaceuticals on labour costs, as multiple data entry and manual reconciliation of data between systems will be eliminated. Improved forecasting and supply chain management is also expected..

“Stock-outs have been a significant issue for our business, as most retail outlets, especially in our export markets, simply won’t accept backorders – that is, they won’t wait until the product is in supply,” Oppenheim said. “Insufficient product quantity in stock leads directly to the loss of sales and disappointed consumers. The new software will enable us to use better forecasting and production planning tools, which we expect will reduce stock-out occurrences significantly.”

The first phase of the roll-out will focus on core functionality relating to Financials, Controlling, Asset Accounting, Sales & Distribution, Inventory Management, Procurement, Warehouse Management and Production Planning software.

Ego Pharmaceuticals manufactures and markets over 110 leading products such as QV, MOOV, Aqium, Pinetarsol, DermAid and Australia's number one sunscreen SunSense.

In related SAP news, SAP A/NZ has created the role of Head of Telecommunications, appointing Mike Robinson to take up the position.

The role will spearhead SAP’s response to recent changes and opportunities in the telecommunications industry.

An internal candidate, Robinson has more than 25 years experience in technology and telecommunications.

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Tags SAPSupply Chaininventory managment

More about SAP AustraliaTherapeutic Goods Administration (TGA)

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