EY & Sigma Healthcare enhance supply chain with SAP IBP

Ernst & Young Australia (EY) and Sigma Healthcare have introduced SAP Integrated Business Planning for Supply Chain (SAP IBP), aiming to streamline Sigma's supply chain operations. The implementation has notably boosted operational efficiency, enhanced inventory management, and raised customer service levels across Sigma's extensive pharmacy network.

Sigma Healthcare, a prominent wholesale and distribution entity in the pharmaceutical sector, was grappling with manual supply planning processes. This method was both time-consuming and susceptible to human error. To resolve these issues, Sigma enlisted EY for the deployment of SAP IBP, which integrates seamlessly with Sigma's existing SAP S/4HANA system.

Katherine Boiciuc, Chief Technology and Innovation Officer at EY Oceania, stated, "The transition to SAP IBP has been a game-changer for Sigma Healthcare. By leveraging the EY team's proficiency in SAP implementation, Sigma has not only streamlined its supply chain processes but also set a new standard for operational excellence in the pharmaceutical industry. This project exemplifies how technology can drive significant business transformation and deliver tangible benefits."

The introduction of SAP IBP has produced substantial benefits for Sigma Healthcare:

• Enhanced customer trust: The ability to consistently deliver high service standards has significantly boosted customer trust and satisfaction.
• Increased employee satisfaction: The planning team now spends only 2-3 hours per day on supply planning tasks, allowing them to concentrate on refining processes and other value-adding activities.
• Reduced inventory: Inventory levels have decreased by 20%, minimising wastage and optimising stock management.
• Improved availability: Product availability has increased by 5%, ensuring customers have access to a broader range of essential medicines.
• Enhanced forecast accuracy: Forecast accuracy has improved by 5%-10%, facilitating better long-term planning and decision-making.

Martin Hawkins, Chief Information Officer at Sigma Healthcare, expressed his contentment with the project, stating, "Since implementing the Response and Supply module of SAP IBP, we have seen improved metrics across the board, including reduced inventory, increased availability and greater efficiencies. This transformation could not have been achieved without the hard work and dedication of both the EY team and our Sigma Operations Planning Team. The new system has also improved our ability to forward plan for events such as supplier closures and public holidays, further enhancing our service to customers."

During SAP Australia and New Zealand's flagship customer event, SAP NOW ANZ, Angela Colantuono, President and Managing Director of SAP Australia and New Zealand, shared, "At SAP we believe technology has a critical role to play in helping organisations to become resilient and sustainable enterprises. By turning to SAP Integrated Business Planning, Sigma Healthcare is not only empowering its workers through simplified processes, but improved planning has enabled it to remove excess inventory and wastage and increase stock availability to more effectively support its community pharmacy network."