Farmacéuticos Maypo gains real-time, accurate business information with SAP and IBM


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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.

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Farmacéuticos Maypo gains real-time, accurate business information with SAP and IBM

  1. 1. Farmacéuticos Maypo gains Overviewreal-time, accurate business Challengeinformation with SAP and IBM Outdated, highly customized and fragmented business systemsFarmacéuticos Maypo S.A. de C.V. is access to real-time, comprehensive caused many inefficenciesa wholesaler that sells and distributes data on each order, it was difficult to at the Mexican wholesalerhighly specialized pharmaceuticals track processes and identify errors, Farmacéuticos the Mexican market, principally to leading to delays in replying to customerpublic-sector clients. The company inquiries. Solutionserves 80 affiliated laboratories Farmacéuticos Maypo selectedand more than 200 health-related For example, it was important to match a range of SAP applications toorganizations, and is the second-largest staff vacation rosters at each location provide integrated control of itsdistributor of medicines for government with the centralized payroll data, to customer management, producthealth 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 companythe infrastructure to make sales directly process was performed manually, a introduced management andto the government, Farmacéuticos slow and inefficient operation that was reporting systems to helpMaypo helps these vendors penetrate prone to error. understand and tune its businessthe market. Employing 600 people, the owns and operates two large Similarly, fragmented databaseswarehouses. and isolated systems prevented the Key benefits development of an enterprise-wide Farmacéuticos Maypo now hasUsers in different divisions had product catalog, making it difficult to a simplified, standardized andcustomized 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 companya range of isolated applications. This it was impossible to perform business in minimizing errors and cuttingsituation introduced major challenges analysis – such as cost control, margin, ERP response times by 80when it came to unifying information inventory turn and more – and learn percent.from each department, and without how to improve.Case study
  2. 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 divisionsBusiness Challenge unacceptable, if it was even possible. has made a huge difference to ourTo run its operations, Mexican “If our deliveries are delayed, this company – we nowwholesaler Farmacéuticos Maypo does not just have consequences for have significant, newrelied on an enterprise resource clients’ confidence in our ability to meet functionality andplanning solution, which over time expectations – it can also result in fines, more automatedhad become highly customized. thereby costing us both in terms of processes.” client goodwill and financially,” explains Eric Barceló Eric Barceló, Technology Director atA complex web of component Technology Director Farmacéuticos Maypo.dependencies and connections Farmacéuticos Maypocaused upgrade attempts to fail, and “Without a single, standardized ERPthe system was unable to provide an solution in place, it was difficult forintegrated overview of operations departments to work together in a Finding the cureor useful business intelligence. For coordinated manner to ensure orders Farmacéuticos Maypo selectedexample, matching staff vacation were fulfilled accurately and on time.” a comprehensive range of SAProsters at each location and the applications, including SAP ERP, SAPcentralized payroll data was He adds: “Excessive customization led ERP Human Capital Management, SAPperformed manually, as there was no to a ‘Frankenstein’ type of system, with Supplier Relationship Managementway to link local data to the financial sections changed to suit a particular (SRM), SAP NetWeaver Master Datasystems. group of users’ needs. This prevented Management (MDM), SAP NetWeaver efforts to migrate to a more advanced Business Process ManagementSimilarly, fragmented databases version, as we struggled to untangle the (BPM) and SAP NetWeaver Processand isolated systems prevented the web of dependent applications. Integration (PI).development of an enterprise-wideproduct catalog, making it difficult "We decided to start afresh – selecting With a comparatively small staffto establish stock availability and a solution that would require as little supporting a large customer base, onedelivery 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. 3. The first phase of the project involved – approximately half of the 15-16,000implementation of SAP ERP Human products we estimate are currentlyResources, which included a portal for used in the pharmaceutical industry –employees to manage and coordinate storing details such as expiry dates anditems such as vacation time and pay storage instructions. SAP MDM gives usslip 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 selectedapplications across all divisions SAP ERP, SAP ERP Human Capitalhas made a huge difference to our Boosting transparency Management, SAP Suppliercompany ­— we now have significant, ­ Next, Farmacéuticos Maypo deployed Relationship Management (SRM),new functionality and more automated SAP NetWeaver Business Process SAP NetWeaver Master Dataprocesses. For example, SAP ERP Management (BPM), to help teams Management (MDM), SAP NetWeaverHuman Capital Management enables to model, execute and monitor Business Process Managementus to automate human resources tasks business processes based on a (BPM), SAP NetWeaver Processthat 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 onThe next step was to introduce a has combined the BPM solution with leased IBM systems, including twostandard product catalog that would SAP NetWeaver Portal technology, IBM Power 570 servers and IBMcontain critical data on more than which enables clients to view status of BladeCenter JS43 Express, running8,000 products. In the pharmaceutical their tenders, track sales orders and IBM AIX and IBM DB2, this means storing the standard other details in real-time.SKU and related data, alongside The company also deployed IBMprice, expiry and storage instructions. Eric Barceló comments: PowerHA, and a suite of TivoliFarmacéuticos Maypo implemented “Farmacéuticos Maypo markets software.SAP NetWeaver Master Data products on behalf of smallerManagement (MDM), which replaces companies to the end-user publicmultiple and sometimes unreliable data health organizations. By enablingfeeds with a single source of consistent browser-based access to data throughinformation. SAP NetWeaver Portal, our customers can see exactly what we are doing“SAP NetWeaver Master Data on their behalf. This is an extremelyManagement has allowed us to create a attractive prospect for our clients, ascatalogue for more than 8,000 products they could probably not afford to track 3
  4. 4. Key Solution Components the activities in this manner, and yet with SAP NetWeaver Portal, FarmacéuticosIndustry Maypo makes this possible.” “The IBM PowerHAWholesale and Distribution, and PowerVMLife Sciences. Superb reliability from IBM technology makes hardware us confident thatApplications Farmacéuticos Maypo has been we have optimizedSAP ERP, SAP ERP Human Capital using IBM servers since 2002 and availability for ourManagement, SAP Supplier has experienced the resiliency of IBM business critical SAPRelationship Management (SRM), systems first-hand. The company ERP systems. IBMSAP NetWeaver Master Data selected two IBM Power 570 servers Tivoli MonitoringManagement (MDM), SAP NetWeaver and one IBM BladeCenter JS43 ensures that we canBusiness Process Management Express server housed in an existing catch issues before(BPM), SAP NetWeaver Process IBM BladeCenter S Chassis, all running they have evenIntegration (PI). IBM AIX and IBM DB2 for Linux, UNIX occurred, enabling and Windows. us to be highlyHardware responsive.”IBM® Power® 570, IBM BladeCenter® The IBM solution was chosen for itsJS43 Express, IBM BladeCenter cost-effectiveness and high level of Eric BarcelóS Chassis, IBM System Storage ® integration with SAP applications. To Technology DirectorDS5100, IBM System Storage fund the acquisition, Farmacéuticos Farmacéuticos MaypoTS3200, IBM System Storage Maypo took advantage of a leasingSAN24B-4 Express. contract with IBM Global Financing rather than outright purchase, whichSoftware makes commercial sense for a fast- minimizing risk, a great advantage. TheIBM AIX , IBM DB2 for Linux, UNIX ® ® growth company. high degree of interoperability betweenand Windows, IBM Tivoli Monitoring, IBM and SAP technology is a significantIBM Tivoli Storage Manager, IBM “We have never experienced a failure bonus, providing benefits in terms ofPowerHA 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 theServices Barceló. “Leasing the equipment first IBM customers in Latin AmericaIBM 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. 5. state drive technology eliminates the management, from infrastructurerotational delay of a spinning platter monitoring and system health throughand of waiting for an arm to move to the to graphical views of SAP applicationcorrect position, thereby accelerating performance. The Tivoli Monitoringaccess to data. SSD technology also solution standardizes management andoffers benefits in terms of efficiency, control, helping to reduce infrastructure Business Benefitsproviding 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. Responsepioneering IBM solid-state drive (ITCAM) for Applications – provides a times have been cut by 80 percenttechnology,” says Eric Barceló. “The single solution for monitoring, viewing, and batch processing times cut fromcost-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 minimalMaximizing availability smoothly with the SAP applications, customization and offer real-timeUsing IBM PowerHA for AIX & Linux, Farmacéuticos Maypo has gained views of business processes. SAPFarmacéuticos Maypo was able to comprehensive visibility and control of Master Data Management allows thecreate 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 accuratePartition Mobility makes it even easier “The IBM PowerHA and PowerVM information on essential data suchto maintain availability. This PowerVM technology makes us confident that as price, expiry and storage.feature enables the Farmacéuticos we have optimized availability for ourMaypo IT team to seamlessly move business critical SAP ERP systems,” IBM Power and BladeCentervirtual server workloads from one blade comments Eric Barceló. “IBM Tivoli technology has proved highlyto 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 IBMFarmacéuticos Maypo selected enabling us to be highly responsive. In Tivoli software ensures the companya comprehensive suite of Tivoli the unlikely event that we do experience can bounce back from disastersolutions to manage availability and a failure, having IBM Tivoli Storage rapidly and efficiently. Leasing theperformance of SAP and manage Manager in place automating backups hardware with the help of IBM Globalthe storage environment. Tivoli and restore gives us the peace of mind Financing enables FarmacéuticosMonitoring addresses almost every that we can be back online as soon as Maypo to accelerate transformationaspect of availability and performance possible.” with minimal business risk. 5
  6. 6. IBM Deutschland GmbH D-70548 Stuttgart IBM, the IBM logo, and 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 Intel, the Intel logo, Intel Xeon and the Intel XeonEnjoying a dose of success logo are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the UnitedFarmacéuticos Maypo has gained an States and other countries. UNIX is a registered “We have never trademark of The Open Group in the United Statesintegrated, standardized ERP system and other countries. Linux is a trademark of Linusthat has minimized delays to processes experienced a failure Torvalds in the United States, other countries, or both. Microsoft, Windows, Windows NT, and theand 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 customerreduction in ERP response times of 80 applications. Since uses IBM and/or IBM Business Partner technologies/services. Many factors havepercent,” says Eric Barceló. “Moreover, deploying SAP ERP contributed to the results and benefits described. IBM does not guarantee comparable results. Allwe 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 customershours to just 15 minutes, whilst quality have used IBM products and the results they mayof service is approximately four times in ERP response have achieved. Actual environmental costs and performance characteristics will vary dependingbetter – 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 Directorapplications to coordinate operations Farmacéuticos Maypoand maximize productivity. The inherentflexibility in the SAP and IBM solutionhas enabled the company to roll out thesolution with minimal customization – a © Copyright 2011 SAP AG SAP AGmajor 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 andprovided 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 inBarceló. “It meets the needs of our data integrity. Farmacéuticos Maypodiverse workforce whilst adhering to our now has a platform that equips us togoal of minimal customization, making deal with continued growth, and we feelthe implementation process as painless confident that IBM and SAP technologyas possible and ensuring that future will be our strategic partner for furtherupgrades will be less effort! success for many years to come.” SPC03340-MXEN-00 (July 2011)