Farmacéuticos Maypo selected SAP ERP, SAP ERP Human Capital Management, SAP Supplier Relationship Management (SRM), SAP NetWeaver Master Data Management (MDM), SAP NetWeaver Business Process Management (BPM), SAP NetWeaver Process Integration (PI). The SAP applications run on leased IBM systems, including two IBM Power 570 servers and IBM BladeCenter JS43 Express, running IBM AIX and IBM DB2 database. The company also deployed IBM PowerHA, and a suite of Tivoli software.

1. Farmacéuticos Maypo gains Overview
real-time, accurate business
Challenge
information with SAP and IBM Outdated, highly customized and
fragmented business systems
Farmacéuticos Maypo S.A. de C.V. is access to real-time, comprehensive caused many inefficencies
a wholesaler that sells and distributes data on each order, it was difficult to at the Mexican wholesaler
highly specialized pharmaceuticals track processes and identify errors, Farmacéuticos Maypo.
in the Mexican market, principally to leading to delays in replying to customer
public-sector clients. The company inquiries. Solution
serves 80 affiliated laboratories Farmacéuticos Maypo selected
and more than 200 health-related For example, it was important to match a range of SAP applications to
organizations, and is the second-largest staff vacation rosters at each location provide integrated control of its
distributor of medicines for government with the centralized payroll data, to customer management, product
health institutions. ensure people were correctly paid. With catalog, personnel and financial
no way to link local personnel data to information. With centralized,
Since few Mexican laboratories have the financial systems, the matching consolidated data, the company
the infrastructure to make sales directly process was performed manually, a introduced management and
to the government, Farmacéuticos slow and inefficient operation that was reporting systems to help
Maypo helps these vendors penetrate prone to error. understand and tune its business
the market. Employing 600 people, the processes.
company owns and operates two large Similarly, fragmented databases
warehouses. and isolated systems prevented the Key benefits
development of an enterprise-wide Farmacéuticos Maypo now has
Users in different divisions had product catalog, making it difficult to a simplified, standardized and
customized their enterprise software establish stock availability and delivery integrated ERP solution in place,
to fit their needs, which had resulted in performance. Without centralized data, that has assisted the company
a range of isolated applications. This it was impossible to perform business in minimizing errors and cutting
situation introduced major challenges analysis – such as cost control, margin, ERP response times by 80
when it came to unifying information inventory turn and more – and learn percent.
from each department, and without how to improve.
Case study

2. Efforts to upgrade the software were
hindered by the complex network of
dependent applications. The cost and “Selecting SAP as our
time required to simplify the application standard applications
landscape was commercially across all divisions
Business Challenge
unacceptable, if it was even possible. has made a huge
difference to our
To run its operations, Mexican
“If our deliveries are delayed, this company – we now
wholesaler Farmacéuticos Maypo
does not just have consequences for have significant, new
relied on an enterprise resource
clients’ confidence in our ability to meet functionality and
planning solution, which over time
expectations – it can also result in fines, more automated
had become highly customized.
thereby costing us both in terms of processes.”
client goodwill and financially,” explains
Eric Barceló
Eric Barceló, Technology Director at
A complex web of component Technology Director
Farmacéuticos Maypo.
dependencies and connections Farmacéuticos Maypo
caused upgrade attempts to fail, and
“Without a single, standardized ERP
the system was unable to provide an
solution in place, it was difficult for
integrated overview of operations
departments to work together in a Finding the cure
or useful business intelligence. For
coordinated manner to ensure orders Farmacéuticos Maypo selected
example, matching staff vacation
were fulfilled accurately and on time.” a comprehensive range of SAP
rosters at each location and the
applications, including SAP ERP, SAP
centralized payroll data was
He adds: “Excessive customization led ERP Human Capital Management, SAP
performed manually, as there was no
to a ‘Frankenstein’ type of system, with Supplier Relationship Management
way to link local data to the financial
sections changed to suit a particular (SRM), SAP NetWeaver Master Data
systems.
group of users’ needs. This prevented Management (MDM), SAP NetWeaver
efforts to migrate to a more advanced Business Process Management
Similarly, fragmented databases
version, as we struggled to untangle the (BPM) and SAP NetWeaver Process
and isolated systems prevented the
web of dependent applications. Integration (PI).
development of an enterprise-wide
product catalog, making it difficult
"We decided to start afresh – selecting With a comparatively small staff
to establish stock availability and
a solution that would require as little supporting a large customer base, one
delivery performance.
customization as possible, while of the most significant challenges in
supporting the varied needs of the the company was managing vacations,
company.” pay and related personnel issues.
2

3. The first phase of the project involved – approximately half of the 15-16,000
implementation of SAP ERP Human products we estimate are currently
Resources, which included a portal for used in the pharmaceutical industry –
employees to manage and coordinate storing details such as expiry dates and
items such as vacation time and pay storage instructions. SAP MDM gives us
slip receipts. the tools to keep track of stock quality
Solution
efficiently and effectively, ensuring we
“Selecting SAP as our standard can fulfill orders accurately.”
Farmacéuticos Maypo selected
applications across all divisions
SAP ERP, SAP ERP Human Capital
has made a huge difference to our Boosting transparency
Management, SAP Supplier
company ­— we now have significant,
­ Next, Farmacéuticos Maypo deployed
Relationship Management (SRM),
new functionality and more automated SAP NetWeaver Business Process
SAP NetWeaver Master Data
processes. For example, SAP ERP Management (BPM), to help teams
Management (MDM), SAP NetWeaver
Human Capital Management enables to model, execute and monitor
Business Process Management
us to automate human resources tasks business processes based on a
(BPM), SAP NetWeaver Process
that were using up employees’ valuable common process model. As well as
Integration (PI).
time,” says Eric Barceló. providing internal access to process
management, Farmacéuticos Maypo
The SAP applications run on
The next step was to introduce a has combined the BPM solution with
leased IBM systems, including two
standard product catalog that would SAP NetWeaver Portal technology,
IBM Power 570 servers and IBM
contain critical data on more than which enables clients to view status of
BladeCenter JS43 Express, running
8,000 products. In the pharmaceutical their tenders, track sales orders and
IBM AIX and IBM DB2 database.
market, this means storing the standard other details in real-time.
SKU and related data, alongside
The company also deployed IBM
price, expiry and storage instructions. Eric Barceló comments:
PowerHA, and a suite of Tivoli
Farmacéuticos Maypo implemented “Farmacéuticos Maypo markets
software.
SAP NetWeaver Master Data products on behalf of smaller
Management (MDM), which replaces companies to the end-user public
multiple and sometimes unreliable data health organizations. By enabling
feeds with a single source of consistent browser-based access to data through
information. SAP NetWeaver Portal, our customers
can see exactly what we are doing
“SAP NetWeaver Master Data on their behalf. This is an extremely
Management has allowed us to create a attractive prospect for our clients, as
catalogue for more than 8,000 products they could probably not afford to track
3

4. Key Solution Components the activities in this manner, and yet with
SAP NetWeaver Portal, Farmacéuticos
Industry Maypo makes this possible.” “The IBM PowerHA
Wholesale and Distribution, and PowerVM
Life Sciences. Superb reliability from IBM technology makes
hardware us confident that
Applications Farmacéuticos Maypo has been we have optimized
SAP ERP, SAP ERP Human Capital using IBM servers since 2002 and availability for our
Management, SAP Supplier has experienced the resiliency of IBM business critical SAP
Relationship Management (SRM), systems first-hand. The company ERP systems. IBM
SAP NetWeaver Master Data selected two IBM Power 570 servers Tivoli Monitoring
Management (MDM), SAP NetWeaver and one IBM BladeCenter JS43 ensures that we can
Business Process Management Express server housed in an existing catch issues before
(BPM), SAP NetWeaver Process IBM BladeCenter S Chassis, all running they have even
Integration (PI). IBM AIX and IBM DB2 for Linux, UNIX occurred, enabling
and Windows. us to be highly
Hardware responsive.”
IBM® Power® 570, IBM BladeCenter® The IBM solution was chosen for its
JS43 Express, IBM BladeCenter cost-effectiveness and high level of
Eric Barceló
S Chassis, IBM System Storage ®
integration with SAP applications. To
Technology Director
DS5100, IBM System Storage fund the acquisition, Farmacéuticos
Farmacéuticos Maypo
TS3200, IBM System Storage Maypo took advantage of a leasing
SAN24B-4 Express. contract with IBM Global Financing
rather than outright purchase, which
Software makes commercial sense for a fast- minimizing risk, a great advantage. The
IBM AIX , IBM DB2 for Linux, UNIX
® ®
growth company. high degree of interoperability between
and Windows, IBM Tivoli Monitoring, IBM and SAP technology is a significant
IBM Tivoli Storage Manager, IBM “We have never experienced a failure bonus, providing benefits in terms of
PowerHA for AIX & Linux, IBM with IBM servers, making them the performance and availability.”
PowerVM. obvious choice on which to run
our SAP applications,” says Eric Farmacéuticos Maypo was among the
Services Barceló. “Leasing the equipment first IBM customers in Latin America
IBM Global Financing from IBM Global Financing gives to install Solid State Drives (SSDs) in
Farmacéuticos Maypo the flexibility to its IBM Power 570 servers. In contrast
seize new business opportunities whilst to traditional hard disk drives, solid-
4

5. state drive technology eliminates the management, from infrastructure
rotational delay of a spinning platter monitoring and system health through
and of waiting for an arm to move to the to graphical views of SAP application
correct position, thereby accelerating performance. The Tivoli Monitoring
access to data. SSD technology also solution standardizes management and
offers benefits in terms of efficiency, control, helping to reduce infrastructure
Business Benefits
providing better performance whilst management costs.
also reducing energy consumption.
Farmacéuticos Maypo has a
The IBM Tivoli solution – including IBM
simplified, standardized and
“We are very excited to adopt Tivoli Composite Application Manager
integrated ERP solution. Response
pioneering IBM solid-state drive (ITCAM) for Applications – provides a
times have been cut by 80 percent
technology,” says Eric Barceló. “The single solution for monitoring, viewing,
and batch processing times cut from
cost-performance ratio is pretty analyzing and managing integrated SAP
four hours to 15 minutes.
difficult to beat, and response times are applications across the enterprise –
drastically reduced.” consolidating critical application data in
SAP applications meet the
one easy-to-use interface. Integrating
company’s needs with minimal
Maximizing availability smoothly with the SAP applications,
customization and offer real-time
Using IBM PowerHA for AIX & Linux, Farmacéuticos Maypo has gained
views of business processes. SAP
Farmacéuticos Maypo was able to comprehensive visibility and control of
Master Data Management allows the
create a high availability cluster for its entire application environment.
company to catalog 8,000 products,
SAP ERP. Combining this with Live
providing a single source of accurate
Partition Mobility makes it even easier “The IBM PowerHA and PowerVM
information on essential data such
to maintain availability. This PowerVM technology makes us confident that
as price, expiry and storage.
feature enables the Farmacéuticos we have optimized availability for our
Maypo IT team to seamlessly move business critical SAP ERP systems,”
IBM Power and BladeCenter
virtual server workloads from one blade comments Eric Barceló. “IBM Tivoli
technology has proved highly
to another for load-balancing purposes. Monitoring ensures that we can catch
reliable. Automated backup and
issues before they have even occurred,
restore functionality based on IBM
Farmacéuticos Maypo selected enabling us to be highly responsive. In
Tivoli software ensures the company
a comprehensive suite of Tivoli the unlikely event that we do experience
can bounce back from disaster
solutions to manage availability and a failure, having IBM Tivoli Storage
rapidly and efficiently. Leasing the
performance of SAP and manage Manager in place automating backups
hardware with the help of IBM Global
the storage environment. Tivoli and restore gives us the peace of mind
Financing enables Farmacéuticos
Monitoring addresses almost every that we can be back online as soon as
Maypo to accelerate transformation
aspect of availability and performance possible.”
with minimal business risk.
5

6. IBM Deutschland GmbH
D-70548 Stuttgart
ibm.com/solutions/sap
IBM, the IBM logo, and ibm.com are trademarks of
International Business Machines Corporation,
registered in many jurisdictions worldwide. A
current list of other IBM trademarks is available on
the Web at “Copyright and trademark information”
at http://www.ibm.com/legal/copytrade.shtml
Intel, the Intel logo, Intel Xeon and the Intel Xeon
Enjoying a dose of success logo are trademarks or registered trademarks of
Intel Corporation or its subsidiaries in the United
Farmacéuticos Maypo has gained an States and other countries. UNIX is a registered
“We have never
trademark of The Open Group in the United States
integrated, standardized ERP system and other countries. Linux is a trademark of Linus
that has minimized delays to processes experienced a failure Torvalds in the United States, other countries, or
both. Microsoft, Windows, Windows NT, and the
and boosted efficiency. with IBM servers, Windows logo are trademarks of Microsoft
Corporation in the United States, other countries,
making them the or both.
“Since deploying SAP ERP on IBM obvious choice on Other company, product or service names may be
trademarks, or service marks of others.
hardware, we have seen an impressive which to run our SAP This case study illustrates how one IBM customer
reduction in ERP response times of 80 applications. Since uses IBM and/or IBM Business Partner
technologies/services. Many factors have
percent,” says Eric Barceló. “Moreover, deploying SAP ERP contributed to the results and benefits described.
IBM does not guarantee comparable results. All
we estimate that our batch processing on IBM hardware, information contained herein was provided by the
featured customer and/or IBM Business Partner.
times have been slashed from four we have seen an IBM does not attest to its accuracy. All customer
impressive reduction
examples cited represent how some customers
hours to just 15 minutes, whilst quality have used IBM products and the results they may
of service is approximately four times in ERP response have achieved. Actual environmental costs and
performance characteristics will vary depending
better – a huge improvement.” times of 80 percent.” on individual customer configurations and
conditions.
This publication is for general guidance only.
Different departments at Farmacéuticos Photographs may show design models.
Eric Barceló © Copyright IBM Corp. 2011. All rights reserved.
Maypo can leverage the SAP
Technology Director
applications to coordinate operations
Farmacéuticos Maypo
and maximize productivity. The inherent
flexibility in the SAP and IBM solution
has enabled the company to roll out the
solution with minimal customization – a © Copyright 2011 SAP AG
SAP AG
major goal for the implementation. “Our users are very satisfied with Dietmar-Hopp-Allee 16
D-69190 Walldorf
the new solution, working more
SAP, the SAP logo, SAP and all other SAP products
“The SAP and IBM solution has independently and productively. and services mentioned herein are trademarks or
registered trademarks of SAP AG in Germany and
provided the flexibility and versatility We are able to offer clients greater several other countries.
we were looking for,” concludes Eric transparency, and can be confident in
Barceló. “It meets the needs of our data integrity. Farmacéuticos Maypo
diverse workforce whilst adhering to our now has a platform that equips us to
goal of minimal customization, making deal with continued growth, and we feel
the implementation process as painless confident that IBM and SAP technology
as possible and ensuring that future will be our strategic partner for further
upgrades will be less effort! success for many years to come.” SPC03340-MXEN-00 (July 2011)