Cipla Europe NV, Antwerp, Belgium

Cipla Europe NV is headquartered in Antwerp, Belgium and is a leading provider of medicinal products. Its parent company, based in India, was founded in 1935 with the aim to give access to affordable, high-quality medicines to the whole mankind.

Cipla’s more than 20,000 employees generate sales of about $ 1,78 billion.

About the Project

Expanding Operations across Europe with SAP Business ByDesign

Innovative IT for an Ambitious Project

Headquartered in Antwerp, Belgium, Cipla Europe is a leading global provider of medicinal products. Its parent company, based in India, was founded in 1935 with the goal of providing every person on the planet with access to affordable, high-quality medicines. To meet this aim, Cipla uses innovative technology – both in the production of medicines in India and in its global logistics processes.

“The power of SAP Business ByDesign is that it has the flexibility to respond to the demands of an organization like ours. The same applies to NTT DATA Business Solutions.”

Daniel de Vries, Supply Chain Director, Cipla Europe NV

The organization was seeking to expand its operations – and quickly. Daniel de Vries, Supply Chain Director at Cipla in Antwerp, explains, “We had to organize our logistics processes in Europe within four months in order to enter the market in several countries at once. We also had to take over distribution in the UK because we had lost a logistics partner there and needed to fulfill our customers’ orders within two weeks.”

Based on its extensive expertise in the industry, Cipla called on NTT DATA Business Solutions’ support to implement a two-tier ERP logistics solution based on SAP Business ByDesign. The solution automatically delivers country-specific versions and has the flexibility to respond to changing demands.

A Fast-Acting Remedy

With the smooth implementation of the new ERP system in just four months, Cipla achieved its aim. The success of the project was, in no small part, thanks to NTT DATA Business Solutions’ support: “The four SAP specialists who carried out the project on behalf of NTT DATA Business Solutions know our market, collaborate with us, work fast, and do not stop until they are satisfied,” says De Vries.

Benefits Now and in the Long Run

The transformation project has yielded numerous benefits for Cipla. For example, the organization was able to connect the warehouse management system of its distribution partners Essers with its parent company in India, facilitating data exchange between the two parties. Now, Cipla can place orders at the parent company for all European countries. Essers receives its instructions via newly established web services and interfaces, streamlining the entire logistics process.

Moreover, SAP standards mean that the right VAT percentages for each country are available instantly. Coupled with the new interface’s user-friendliness, this has enabled end users to get started without delay. The company can now also create its own logistical reports.

These benefits have in turn helped Cipla achieve a turnover of € 20 million in the first year since go-live. The company’s collaboration with NTT DATA Business Solutions will not end there, however; the second phase of the project will see the solution rolled out in Germany, Spain, and other European countries. Cipla also plans to expand its new system’s functionality to include forecasting, CRM, and more. “With the flexibility and innovations of SAP and NTT DATA Business Solutions, we can quickly respond to growth opportunities in our market,” enthuses De Vries.