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SAP Customer Success Story

Pharmaceutical

AstraZeneca is one of the


world's leading pharmaceutical companies. It
delivers life-changing

ASTRAZENECA
SAP MATERIALS MANAGEMENT:
BOOSTING GROWTH AT ASTRAZENECA

medicines in diverse
therapeutic areas:
cardiovascular, neuroscientific, oncological,
gastrointestinal,
inflammatory disease, as
well as infection and pain
control. Employing over
50.000 people, AstraZeneca
manufactures in 20
countries and turns over
USD 17.8 billion per year.
In Belgium, the pharmaceutical giant has an office

At the plant in Destelbergen, bulk products from 12 different


production sites are packed, in over 450 different types of
packaging. In addition, the plant serves as the Benelux distribution center. At present, we handle over 24 million units a year.
The products are distributed to wholesalers throughout the
Benelux and to hospitals as well, here in Belgium, opened Birk
Vanderween, AstraZenecas Site and Head Account Manager.
We are a market-driven site, which implies that we must
guarantee short lead-times, flexibility and exceptional customer
service at a competitive price. And since we are active in the
tightly-regulated pharmaceutical sector, we must comply with
an ever-growing array of tough requirements and GMPs
(Good Manufacturing Practices) as issued by regulatory bodies.

in Brussels and a packaging and distribution plant

URGENT NEED FOR SUPERIOR LOGISTICS

in Destelbergen. To

Over the past few years, the AstraZeneca site has experienced a
dramatic increase in volume. On 6 April 1999, our parent
company Zeneca Group PLC (UK) merged with Astra (Sweden).
Both were major pharmaceutical companies in their own right,
with highly complementary product portfolios. By joining forces,
they became a drug giant, Vanderween explained. Prior to
the merger, we had been packing and distributing 7 million units
per year, partly through outsourcing. In 1999, our factory was
expanded and a year later we got a new warehouse and distribution area. At around the same time, our packaging operations

guarantee swift, efficient


and cost-effective
packaging and delivery,
the AstraZeneca plant uses
innovative technologies
and tools, such as SAP
Materials Management.

The project started in March 2003. The distribution process to the


Dutch market was used as a starting-point, as it is less complex
than the network in Belgium. SAP Consultants designed the
concept, drew up a blueprint and
implemented the platform. We
did have some problems
Today, we can handle four times the
getting all the right master data
volume of the old system. In addition,
into the pick-to-light system,
errors are reduced to a minimum.
Vanderween admitted, and
Birk Vanderween, AstraZenecas Site and Head Account Manager
integrating all aspects, but the
SAP consultants pulled it off.

were transferred from contract packers to our own dedicated


in-house facility. So, within the space of a few short years, the
volume of medicines to be handled here rocketed from 7 tot 24
million units per year.

To pack and distribute these


quantities efficiently, AstraZeneca
Destelbergen needed to optimize
its logistics. Furthermore, in 2000,
the AstraZeneca Group had
started to set up a shared service
centre, called European Business
Both the hardware and software required validation prior to
Services (EBS), to handle financial processing activities for all
going live. AstraZeneca produced comprehensive validation
AstraZeneca companies throughout Europe. The SAP supported
documentation, which certified the systems functionality.
service centre would utilize workflow and scanning modules
The SAP solution came, as standard, with enough document
within the ERP. This change of focus also forced the Destelbergen
management systems to ensure proper validation. By July 2004
plant to rethink its logistics. We had been using the financial,
AstraZeneca went live with SAP Warehouse Management, intelogistics and production modules of SAP R/3 since 1997, said
grated with the pick-to-light and the European Business System.
Vanderween, and we were more than satisfied with the
powerful, robust backbone it
provided. Consequently, it seemed
EFFICIENCY AND COST GAINS
Armed with SAP Materials Management,
only logical to further develop
The results are great, said a
SAP Materials Management and
clearly satisfied Vanderween.
we hope to achieve our goal: be the best
SAP Warehouse Management.
Today, we can handle four times
supplier in the Benelux market by the end
The new system can be perfectly
the volume of the old system, with
of 2005.
integrated into our backbone
only a limited increase in the
Birk
Vanderween,
AstraZenecas
Site
and
Head
Account
Manager
system and that of the EBS. And it
number of staff. The in-plant
did have all the functionalities we
tracking and tracing possibilities
needed.
are enormous, allowing us to trace
every box. In addition, errors are reduced to a minimum, thanks
to the combination of the software and the pick-to-light system
PICK-TO-LIGHT AND SAP MM
(the picking location and quantity are clearly shown by a bay
After a thorough preliminary study, AstraZeneca chose a
lamp). There have been big gains in efficiency and the level of
pick-to-light picking system marketed by KNAPP, a German
customer service has improved dramatically as a result. In the
provider well-versed in logistics integration, to go with the new
past, customers had to order before 11 am to get their products
SAP module. KNAPP installed the system and SAP Consultants
delivered the next day. Now they only have to order before 3 pm.
oversaw the implementation. Vanderween: All SAP consultants
And full delivery is guaranteed within 24 hours. So theres consiare highly qualified and we had every confidence that they would
derable gain in time, but also cost reduction and undoubtedly
do a good job. And they did.

ROI through more satisfied customers. Our inspirational dream


is now to integrate the customers platforms into our solution.

At a glance

SAP solution components

SAP Materials management &


SAP Warehouse Management

Hardware platform

Compaq

Operating system

Unix

Database

Oracle

Number of users

36

Implementation time

Phase 1 (The Netherlands):


2.5 months;
Phase 2 (Belgium): 2 months

Implementation partner

SAP Consultants

ASPIRING FOR THE TITLE OF BEST SUPPLIER

The mission of our Destelbergen site is to contribute to the


success of AstraZeneca by assuring timely supply of quality and
compliant products to all the Benelux customers, while using
resources and assets in the most effective way, concluded
Vanderween. With SAP Materials Management we have
definitely built a robust platform for future developments in
distribution, which will ensure AstraZenecas competitive edge.
Recently, we have been benchmarked as one of the Best Practice
sites within the AstraZeneca group, which is partially thanks to
SAP Materials Management. Armed with a good logistics system
and SAP Materials Management as the backbone structure, we
aim to be the best supplier in the Benelux market by the end
of 2005.

SAP Belgium N.V. -S.A.


Terhulpsesteenweg 166
Chausse de La Hulpe
B-1170 Brussels
T +32 (0)2 674 65 11
www.sap.com/belux

(01/12/04)
SAP Belgium N.V.-S.A. SAP, the SAP logo, mySAP, mySAP Business Suite and other SAP products and services mentioned herein are trademarks or registered trademarks of
SAP AG in Germany and in several other countries.

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