FEATURE: IT INTEGRATION //////////////////////////////////////////////////////////////////////////
The company had developed a lite scanning
system using scanners at dispatch, but
there was no real integration into its ERP
system, Sage Evolution. Crucially, there
was no overriding system that would direct
the warehouse operations in line with best Cquential was chosen because it offered this
combination of flexibility and strength, as
well as the domain knowledge of its team.
An additional point was the fact that, as a
locally developed product, access to technical
support was extremely quick and direct.
GIVEN THE SHEER VOLUMES OF CIPLA’S
SOUTH AFRICAN OPERATION AND THE
LARGE RANGE OF STOCK ITEMS, IT WAS
CLEAR THAT ACHIEVING THE DUAL
GOALS OF EFFICIENCY AND ACCURACY
REQUIRED A FLEXIBLE YET ROBUST
WAREHOUSE MANAGEMENT SYSTEM.
practice and enforce required processes
while integrating seamlessly into Sage.
The final step in the process is the handover
of the assembled orders to the courier
company responsible for distribution, a very
labour intensive manual process.
Large range of stock and
massive volumes
Given the sheer volumes of Cipla’s South
African operation and the large range of
stock items, it was clear that achieving
the dual goals of efficiency and accuracy
required a flexible yet robust warehouse
management system.
Also, the company was determined to be
able to offer market-leading turnaround
times and customer service even though its
Cape Town distribution centre was located
far from other population centres.
“We knew we needed a warehouse
management system that was flexible
enough to meet our specific needs, but
robust enough to allow us to meet our
targets for accuracy and speed and support
a business that was growing rapidly,” said
Joseph Ludorf, Supply Chain Executive at
Cipla Medpro.
54
INTELLIGENTCIO
The new warehouse has been designed
to provide Cquential with the perfect
distribution hub. Its team implemented the
Cquential Warehouse Management System
over nine months.
The first step was to conduct business
workshops to document Cipla Medpro’s
requirements, after which the system was
suitably configured. A big part of the job
was designing an interface with the Sage
Evolution ERP, as well as with the IT system
used by the courier company.
Steve Mallaby, CEO at Cquential, said it was
challenging to introduce a new system and
its allied processes into an environment that
had no previous warehouse management
system experience.
“The company’s executive taking a hands-
on approach was vital to the success of the
project,” he said.
“A system like Cquential is only effective
if the users embrace it and we have to
give Joseph and his team full credit for the
imaginative and ultimately highly successful
change management programme they
put together. Involvement at executive
level is crucial to the success of change
management implementation.”
The new warehouse management system
was phased in across two sites, beginning
with the inbound phase and culminating
with the outbound at each one. For the
duration of the implementation, Cquential
placed its own industrial engineers on site
to assist with change and handle queries.
Billing, however, is done using the software-
as-a-service model, giving Cipla Medpro
the benefits of rapid scalability and cost
effective monthly pricing dependent on
level of use. The contract is backed up by
a service-level agreement, with support
offered remotely.
Business benefits
Two of Cipla’s key goals were:
1. Compliance with regulatory constraints
2. Improve customer service through speed
and accuracy
In addition, the implementation delivers
99.98% stock accuracy which was evident in
the recent stock-take of a cycle turnover of
approximately R600 million. This represents
a variance in the order of approximately
R3,500 which represents two small packets
of high-end drugs.
Crucial accuracy
This phenomenal accuracy greatly enhances
Cipla Medpro’s audit processes and assists
it in complying with the various regulations
that govern pharmaceutical suppliers.
It also provides the necessary muscle to
enable Cipla Medpro to bid for and win
large national tenders, such as the R2 billion
contract with the Department of Health
to supply antiretroviral drugs for the South
African government’s HIV/ Aids programme
from 2015–17.
Another benefit is that the system now
drives the process and represents the
intellectual capital relating to warehouse
management and distribution, a much less
risky alternative to relying on the skills and
memory of individuals.
Cipla has been growing strongly since
the Cquential system was put in and the
system has proved capable of handling
the increased volumes with ease while
continuing to yield improved productivity
and customer service.
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