Pharmaceutical contract manufacturer chooses SAP Business One
Peppina, contract manufacturer for the local and global pharmaceutical industry has implemented SAP Business One, from 4most Systems, for increased efficiencies, smoother operations and access to real-time data and reporting.
Founded in 1956 as a mail order business, the last 30 years has seen Peppina change direction to become one of approximately two dozen contract manufacturers specialising in the pharmaceutical industry. This sees it manufacture and produce not only its own range of over the counter (OTC) pharmaceutical products (hair care, skincare, joint support, stress relief, energy and muscle relief), but also pharmaceutical related products for many other suppliers within this industry as well.
With its head office in Johannesburg, Peppina enjoys a national and global presence with all products manufactured at its facility available on both the local and international market, complete with an online shopping facility. "Thirty years ago, we made the move from mail order to producing our own products. However, it was only about eight years ago that we began the manufacturing side of our business, never once predicting the success that has it accounting for the largest part of what we now do," says Liesl Groenewald, Operations Manager.
Growth = challenges + opportunity
With demand for its pharmaceutical contract manufacturing facilities taking on unprecedented growth, Peppina was fast outgrowing both its legacy infrastructure and current method of managing its operations. "Our legacy system was largely responsible for the sales portion of our business," continues Groenewald, with everything else captured by hand and on Excel, predominantly by just one individual. Not only was this incredibly time consuming, but the scope for mistakes and human error was fast becoming an unnecessary challenge, potentially hindering what could otherwise be a far more streamlined, smoother and efficient way of doing business.
With its growth trajectory showing no signs of abating, coupled with strict industry regulations and processes needing to be adhered to in the manufacturing and production of pharmaceutical products, Peppina began to review potential technology solutions capable of enabling it to meet current requirements together with continued future growth.
Although not entirely sure what was available, Peppina was very clear on what it both needed and wanted – a fully integrated system, capable of customisation where necessary in order to meet its unique industry related requirements. "We weren't interested in developing anything from the ground up or running separate packages," stresses Groenewald. "Our requirements included, amongst other – automatic stock reconciliation, real-time access to information, the ability to capture batch numbers and expiry dates (vital to the pharmaceutical industry, yet slightly more unique compared to other industries), together with full integration, automation and absolute traceability.
Biting the bullet
Although painfully aware that a new technology infrastructure was vital to the sustainability and future growth of the business, the sheer magnitude of embarking on such a project resulted in it being discussed, but no real steps taken to make it happen.
Having looked at a few potential solutions, no real answer or way forward had been found due to a large portion of offerings seemingly coming from global vendors, offering very little to no local support.
At about the same time, a representative from 4most Systems, a leading supplier and implementer of SAP Business One and ERP software technology, contacted Peppina as part of its cold calling process.
It was perfect timing, with conversations indicating that Peppina had potentially found the answer to
its problems, not only with regards to day to day requirements but also those more unique areas
specific to the pharmaceutical industry and its stringent requirements.
"I had not realised the amount of customisation possible and afforded by SAP Business One," says
Groenewald. "It is as if we were able to take the best off the shelf package suitable to our needs and
then tweak and customise to create a solution best suited to our environment, our requirements and
the industry in which we operate." To sweeten things still further, with Dischem a SAP user, it opened
the door to potential integration with various stakeholders and third parties further down the line.
Some market research conducted on 4most as a vendor, yielded positive feedback and
recommendations. "4most's reputation as one of the leading vendors for SAP Business One in the
local market cemented our commitment to move forward not only with implementing SAP Business
One, but also with 4most as our chosen vendor."
Flipping the switch
Saturday, 1 March 2019 at approximately 23h30 saw Peppina go live with its new installation of SAP
Business One. "It's a tough and scary moment," says Groenewald. "But you get to a point when you
have to switch over and trust and believe that the months of planning and preparation will yield the
results you need."
Between change management and getting used to a whole new set of processes and an entirely
different system, the first few months proved challenging. "We didn't know where to find anything at
first. And, no matter how much training one has, it is only in the actual ‘doing' that one can really
learn, thereby making a new system one's own," says Groenewald.
"There were also things we didn't know we didn't know." For example, customising customer
statements and invoices to suit a business's corporate identify (CI) and financial regulations as
opposed to simply running SAP Business One's generic templates. "But, as we learned, we got
Yes, we would do it all over again
Yet despite the challenges, with only a few months since implementation earlier this year,
Groenewald is quick to point out two very significant benefits already yielding advantages for Peppina.
* Transparency: No hiding. Once information is captured onto the SAP Business One system, it
is there. This allows for complete accountability.
* The sharing of information: A lot more people have access to information, faster and better
than ever before. The days of one person owning all the information are no longer.
Smoother operations, reduced errors and hands on efficiencies
The pharmaceutical industry and its accompanying regulations make for very time-consuming
processes, irrespective of the underlying technology infrastructure. A set of paper copies, physically
signed off, need to be kept as part of industry compliance. However, the beauty of a fully automated
and integrated system means that any human errors are now immediately spotted. "If something is
captured incorrectly by hand, it will be immediately evident upon attempting to enter it into the
system," says Groenewald. This has not only reduced the propensity for human errors previously
experienced but, in so doing, allows for far greater efficiencies and data integrity.
"It's also the speed of things," continues Groenewald. "I am now able to simply login to SAP Business
One to find all the information I could possibly need so much quicker than what was previously
possible. The customised reporting is also a great tool to have. Literally, at the press of a button, I can
access a report on whatever I need to report on, with the costing of products now also possible in
The management of Peppina's stock levels has also benefitted exponentially with SAP Business One
providing the functionality to not only immediately realise any potential errors but most importantly to
allow for the fixing of them, immediately, removing any potential knock on effect. Peppina now knows
exactly what is coming in, from where, and how much, all of which has a huge impact on improving
daily efficiencies. Industry compliance also sees Peppina needing to run a mock recall every year.
SAP Business One facilitates this a lot easier, quicker and smoother than any manual system
Whilst the procurement process has also benefitted from the new technology infrastructure, there are
some final tweaks Groenewald would like to look at together with a few smaller issues pertaining to
the display of currencies within its financial reporting.
"Realistically, it probably takes about a year from initial implementation to completely iron out all
chinks," says Groenewald. "But we are so much further down the road than we have ever been and
look forward to continuing both our investment in SAP Business One and our relationship with 4most
into the future."