International ERP Implementation
A Multi-National Program to Improve Planning Processes,
Working Capital and Customer Service
REM Associates of Princeton, Inc. recently assisted a multi-national pharmaceuticals manufacturing company implement an ERP system in fifteen countries with the assistance of our associates. The countries involved were China, Taiwan, Pakistan, India, Sri Lanka, the Philippines, Malaysia, Indonesia, Nigeria, Kenya, Mexico, Costa Rica, Panama, Columbia, and Brazil. A challenge in this implementation was dealing with the diverse cultures and business practices of these various countries. The system was implemented within budget and on time in all locations. Our client was awarded the “Person of the Year” award by this company, for our completion of this project.
Objectives of this work:
The agreed upon objectives were the following:
- Since sites produced products for each other it was necessary that all sites were using the same system. This system was already in place in North America and Europe.
- System implementation included company owned manufacturing facilities as well as contract manufacturers and co-packers.
- Ensure Y2K compliance.
- Reduce the working capital investment in inventories, including raw materials, WIP, and finished goods.
- Ensure contemporary supply chain management practices as sites implemented the new software.
Prior to the implementation of any process improvement recommendations:
- Through growth by acquisition, most sites were using spreadsheet based systems.
- As a pharmaceutical company there was a high level of technical competence in pharmaceuticals, but limited expertise in business process development and little experience in supply chain management processes. There was minimal knowledge of ERP systems.
- Inventory Accuracy was well below the level required for an effective ERP system implementation.
- No one area owned inventories; no one was held responsible for the sales forecast.
Following more than a year of site visits, planning, administration, and implementation assistance, the client was able to produce the following results:
- The BPCS Production Planning system was implemented at all sites on time, with few modifications required to the software.
- Through implementation of cycle counting programs all sites achieved inventory accuracy above 95%.
- All individuals involved with the system became knowledgeable about ERP system concepts. Purchase price became less important than “cost-in-use”, which involved purchase price, quality testing costs, inventory carry costs, etc.
- Inventories were reduced by 25%.
If your current environment in any way resembles the “Existing Situation”, contact REM Associates to develop an action plan for process improvements directed at achieving similar results.