Intelligent CIO Africa Issue 14 | Page 54

FEATURE: IT INTEGRATION ////////////////////////////////////////////////////////////////////////// The company had developed a lite scanning system using scanners at dispatch, but there was no real integration into its ERP system, Sage Evolution. Crucially, there was no overriding system that would direct the warehouse operations in line with best Cquential was chosen because it offered this combination of flexibility and strength, as well as the domain knowledge of its team. An additional point was the fact that, as a locally developed product, access to technical support was extremely quick and direct. GIVEN THE SHEER VOLUMES OF CIPLA’S SOUTH AFRICAN OPERATION AND THE LARGE RANGE OF STOCK ITEMS, IT WAS CLEAR THAT ACHIEVING THE DUAL GOALS OF EFFICIENCY AND ACCURACY REQUIRED A FLEXIBLE YET ROBUST WAREHOUSE MANAGEMENT SYSTEM. practice and enforce required processes while integrating seamlessly into Sage. The final step in the process is the handover of the assembled orders to the courier company responsible for distribution, a very labour intensive manual process. Large range of stock and massive volumes Given the sheer volumes of Cipla’s South African operation and the large range of stock items, it was clear that achieving the dual goals of efficiency and accuracy required a flexible yet robust warehouse management system. Also, the company was determined to be able to offer market-leading turnaround times and customer service even though its Cape Town distribution centre was located far from other population centres. “We knew we needed a warehouse management system that was flexible enough to meet our specific needs, but robust enough to allow us to meet our targets for accuracy and speed and support a business that was growing rapidly,” said Joseph Ludorf, Supply Chain Executive at Cipla Medpro. 54 INTELLIGENTCIO The new warehouse has been designed to provide Cquential with the perfect distribution hub. Its team implemented the Cquential Warehouse Management System over nine months. The first step was to conduct business workshops to document Cipla Medpro’s requirements, after which the system was suitably configured. A big part of the job was designing an interface with the Sage Evolution ERP, as well as with the IT system used by the courier company. Steve Mallaby, CEO at Cquential, said it was challenging to introduce a new system and its allied processes into an environment that had no previous warehouse management system experience. “The company’s executive taking a hands- on approach was vital to the success of the project,” he said. “A system like Cquential is only effective if the users embrace it and we have to give Joseph and his team full credit for the imaginative and ultimately highly successful change management programme they put together. Involvement at executive level is crucial to the success of change management implementation.” The new warehouse management system was phased in across two sites, beginning with the inbound phase and culminating with the outbound at each one. For the duration of the implementation, Cquential placed its own industrial engineers on site to assist with change and handle queries. Billing, however, is done using the software- as-a-service model, giving Cipla Medpro the benefits of rapid scalability and cost effective monthly pricing dependent on level of use. The contract is backed up by a service-level agreement, with support offered remotely. Business benefits Two of Cipla’s key goals were: 1. Compliance with regulatory constraints 2. Improve customer service through speed and accuracy In addition, the implementation delivers 99.98% stock accuracy which was evident in the recent stock-take of a cycle turnover of approximately R600 million. This represents a variance in the order of approximately R3,500 which represents two small packets of high-end drugs. Crucial accuracy This phenomenal accuracy greatly enhances Cipla Medpro’s audit processes and assists it in complying with the various regulations that govern pharmaceutical suppliers. It also provides the necessary muscle to enable Cipla Medpro to bid for and win large national tenders, such as the R2 billion contract with the Department of Health to supply antiretroviral drugs for the South African government’s HIV/ Aids programme from 2015–17. Another benefit is that the system now drives the process and represents the intellectual capital relating to warehouse management and distribution, a much less risky alternative to relying on the skills and memory of individuals. Cipla has been growing strongly since the Cquential system was put in and the system has proved capable of handling the increased volumes with ease while continuing to yield improved productivity and customer service. www.intelligentcio.com