Customer reference

Realcan in good health with digital logistics.

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Customer
Realcan
Pharmaceutical Group Co.
Industry
Pharmaceuticals
Key expertise
SAP EWM,
SAP TM
Go-live
Multiple
Country
China
The China-based Realcan Pharma­ceutical Group is a giant in the highly regulated medical services arena, providing drugs and medical instruments through more than 130 subsidiaries. It purchases goods from over 12,000 domestic and foreign pharma­ceutical manu­facturers and delivers them across its network of 31 provinces and cities across China. Innovative techno­logy is key to ensuring its medicines are transported safely, in the correct conditions.
To meet the needs of its ever-expanding business, Realcan was looking to improve its transportation process. It partnered with Westernacher Consulting and implemented SAP Extended Warehouse Management and SAP Transportation Management. With the digital transformation of its transportation system complete, Realcan can be sure of the safe delivery of every order.

Objectives

  • Implement a powerful information system to manage the whole process of transporting medicine
  • Ensure the transport system complies with strict temperature regulations
  • Increase the rate at which goods are shipped out and replenished
  • Improve efficiency by analyzing staff workload in real time

We piloted the adoption of SAP EWM and SAP Transportation Management within the Chinese pharmaceutical industry. The applications’ comprehensive operations logic and high efficiency made them the right choice to support our strategic digital transformation.

Huang Shaojie, Director of Logistics and Warehousing at Realcan Pharmaceutical Group Co., Ltd.

Benefits

  • Increased turnover from 81% to 90% by calculating storage workload before operation, coordinating the workforce accordingly, and locating turnover boxes that need replenishment
  • Reduced the effort of collecting workload statistics by analyzing staff workload in real time, which also enabled staff to get more income for more work
  • Efficiency of warehouse task processing increased from 82% to 91% by enabling management and integration of the largest automatic pharmaceutical distribution warehouse in North China
  • Vehicle loading and utilization rate increased from 65% to 78%
  • Transportation expenses cut by 3%-5% by reducing fuel consumption and human inefficiency
  • System delays eliminated by integrating SAP ERP with SAP EWM and SAP TM to receive order information seconds after invoicing
  • Centralized data management helped reduce logistics costs by 15% per item
Increased turnover from

81%-90%

Enhanced efficiency of warehouse task processing from

82%-91%

Increased vehicle loading and utilization rate from

65%-78%

Reduced transportation expenses by

3%-5%

Highlights

  • Visualized and traced the process of drug circulation
  • Matched temperate collection equipment with orders to automatically record the temperature, route, and receipt of deliveries
  • Fast drug circulation during COVID-19
  • Allocated medical resources reasonably according to government regulations

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