Sydney, Australia – 6 August 2024 – Ernst & Young, Australia (EY) and Sigma Healthcare collaborated to streamline their supply chain operations through the implementation of SAP® Integrated Business Planning for Supply Chain (SAP IBP) solution. This transformation has significantly improved Sigma's operational efficiency, optimised inventory management, increased customer service levels and satisfaction across its extensive network of pharmacies and ordering of over 16,000 products from nearly 400 vendors across the globe.
Sigma Healthcare, a leading wholesale and distribution business in the pharmaceutical industry, faced challenges with manual supply planning processes that were time-consuming and prone to human error. To address these issues, Sigma turned to EY for its highly skilled experience implementing SAP IBP, a solution that seamlessly integrates with Sigma's existing SAP S/4HANA® system.
Katherine Boiciuc, EY Chief Technology and Innovation Officer, Oceania, remarked: “The transition to SAP IBP has been a game-changer for Sigma Healthcare. By leveraging the EY team’s proficiency in SAP implementation, Sigma has not only streamlined its supply chain processes but also set a new standard for operational excellence in the pharmaceutical industry. This project exemplifies how technology can drive significant business transformation and deliver tangible benefits.”
The implementation of SAP IBP has been important in helping to yield impressive results for Sigma Healthcare:
- Enhanced customer trust: Being able to consistently and repeatedly deliver high service standards was a critical milestone in significantly boosting customer trust and satisfaction.
- Increased employee satisfaction: The planning team now spends only 2-3 hours per day on supply planning tasks, allowing them to focus on refining processes and other value-adding activities.
- Reduced inventory: Inventory levels decreased by 20%, minimising wastage and optimising stock management.
- Improved availability: Product availability increased by 5%, ensuring that customers have access to a wider range of essential medicines.
- Enhanced forecast accuracy: Forecast accuracy has improved by 5%-10%, enabling better long-term planning and decision-making.
Martin Hawkins, Chief Information Officer, Sigma Healthcare, expressed his satisfaction with the project: "Since implementing the Response and Supply module of SAP IBP, we have seen improved metrics across the board, including reduced inventory, increased availability and greater efficiencies. This transformation could not have been achieved without the hard work and dedication of both the EY team and our Sigma Operations Planning Team. The new system has also improved our ability to forward plan for events such as supplier closures and public holidays, further enhancing our service to customers.”
Speaking at SAP Australia and New Zealand’s flagship customer event SAP NOW ANZ, Angela Colantuono, President and Managing Director, SAP Australia and New Zealand said: “At SAP we believe technology has a critical role to play in helping organisations to become resilient and sustainable enterprises. By turning to SAP Integrated Business Planning, Sigma Healthcare is not only empowering its workers through simplified processes, but improved planning has enabled it to remove excess inventory and wastage and increase stock availability to more effectively support its community pharmacy network."
The success of this project highlights the importance of strategic collaboration and the adoption of innovative technologies in driving business growth and operational excellence. Sigma Healthcare is now better positioned to support its network of pharmacies and deliver high-quality healthcare services to communities across Australia.
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