Technology Case Study: Animal Health International€¦ · Technology Case Study: Animal Health...

Technology Case Study:

Animal Health International

event sponsor produced by

September 29, 2011

[email protected]

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


2

Source: NAW

Key Wholesale Distribution ERP Direction 40% of distributors will deploy new enterprise technology by 2015


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


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


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


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


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

Presenter

Presentation Notes

This slide shows our SAP for Wholesale Distribution solution keeping the top 6 challenges in context. Having an end-to-end integrated solution on an open and scalable platform can help wholesalers meet their performance goals and drive higher profitability


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


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

Presenter

Presentation Notes


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

Itelligence SAP Business All in One

Wholesale Industry Solution it.trade

1

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


SAP Functionality





itelligence it.trade

Micro-vertical functionality, built-in content, tools, and

methodologies delivered by SAP partners



of installations

SAP Business

Suite


SAP Functionality





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



of installations

SAP Business

Suite


SAP Functionality





itelligence Intellectual Property 24 WD relevant functions… • IDW interface • Counter Sales • Lot Billing • Load Builder • Rebates/SPA’s

September 2011

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.

The SAP Decision

• Selection: SAP vs. Oracle

• Implementation methodology

• Pre-configured solution

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

Next Steps

• Double the size of the company

• Snapshots/Dashboards • e-selling

•CRM

•HCM

• Mobility

Thank You

Questions?

• Please join us in the discussion room.

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