GlaxoWellcome South Africa, the local arm of the giant British-based pharmaceutical company, has gone live with its implementation of BPCS 6.2 at its Midrand head office. And, says IS manager Trevor Mathews, the company is already enjoying a range of benefits from SSA`s software.
These include improved control of operations, enhanced focus on performance measures and integration of key processes.
"In addition, converting to BPCS has ensured Year 2000 compliancy," says Mathews.
Glaxo-Wellcome`s search for an MRP2 (materials resource planning) solution began in 1994. Initially 12 packages were considered before a shortlist was drawn up in which BPCS was pitched against SAP and MFG Pro. "The fact that BPCS was a group-preferred choice and provided functionality suitable to the pharmaceutical industry played a major part in our decision," recalls Mathews.
BPCS was installed on an AS/400 Risc 510, effectively replacing the legacy Interpack system. This home-grown system, running on an HP 3000, had served Glaxo, and then the merged GlaxoWellcome, well for more than a decade, but, says Mathews, the time had come to move to an integrated MRP2 system, with the emphasis on improved customer service.
"We also needed to improve control of our supply chain," adds Mathews. "Globally and locally GlaxoWellcome was committed to getting all companies involved in Class A accreditation. Our goal here was to have 95% of all customer service levels with continued consistency in achievement."
Another challenge faced by the company was the fact that it was a pioneer in implementing BPCS 6.2 among its fellow GlaxoWellcome companies.
The scope of GlaxoWellcome SA`s operation is daunting. Among the Top 20 of 127 international operations, it contributes 2% of GlaxoWellcome`s annual turnover. It has more than 600 suppliers providing a range of essential raw materials and packaging for the manufacture of over 410 line items, which are shipped to wholesalers. Despite the complexity, total quality and absolute accuracy are non-negotiable. In addition, because of the nature of the pharmaceutical industry, GlaxoWellcome must manage such issues as status, expiry dates, batch lot traceability and source of ingredients.
"BPCS helps us with all of these," Mathews advises. "BPCS caters for the entire supply chain in our business, from beginning to end." It addresses purchasing, inventory management, order management, the issuing of shopfloor orders, financials, planning based on demand and forecasting, master production schedules (GlaxoWellcome plans two years ahead), acceptance, and controls the flow from goods received, manufacturing, distribution warehouse, and shipping.
In time GlaxoWellcome will consider installing the BPCS e-commerce module. "Our starting point," says Mathews, "is to get our electronic delivery infrastructure in place and to ensure we can have seamless EDI with the state, one of our largest clients."
Sales and marketing teams have been trained up so they can, for the first time, see just where their products are in the manufacturing cycle. This allows them to report accurately to customers just when urgent shipments will be delivered. In total 70 people in the organisation access BPCS daily; eventually, more than 120 people will.
"GlaxoWellcome is committed to a process of continuous improvement," says Mathews. "BPCS is instrumental in this process."
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