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Sinopharm Upgrades its Supply Chain with Manhattan Associates

19.09.2011

Pharmaceutical Market Leader Sinopharm Group’s distribution center (DC) in Hunan, China has successfully upgraded its supply chain technology platform with the latest version of Manhattan Associates’ Warehouse Management solution (WMS).

Sinopharm expects Manhattan’s WMS will play a vital supporting role in helping the company achieve its target of RMB 10 billion (US$1.6 billion) in revenue in the next five years.

As China’s largest pharmaceuticals distributor – the third largest globally – Sinopharm has business operations serving the whole of China, and has invested nearly RMB 200 million (US$31 million) in its Hunan distribution center, which opened in May this year. Since implementing Manhattan Associates’ WMS, Sinopharm is now able to categorize products and manage storage requirements to meet different manufacturers’ needs, which is helping make order picking more efficient and optimizing operating flow. It also has the ability to analyze the performance of the warehouse and can identify areas where productivity and service level improvements can be made. Sinopharm estimates the enhanced capabilities offered by the new system will deliver productivity improvements of up to 30 percent.

The WMS upgrade will also enable the company to manage the increasing volume of stock it is handling, reduce overall distribution costs for manufacturing customers, and provide them with timely, accurate and high-quality distribution services. In addition, Sinopharm is benefiting from the software’s reliable tracking and traceability capabilities, enabling the distributor to assist the government departments it currently works with in regulating the pharmaceutical industry, and assuring safe drug use.

“One of our biggest challenges was ensuring our distribution infrastructure could keep up with the pace of growth of the business,” said Yang Kaiwen, general manager of Sinopharm Group. “We needed a system that could support rapid volume expansion at the same time as facilitating operational efficiency improvements and allowing us to keep up with the industry’s changing regulations. With the implementation of Manhattan’s latest warehouse management system, we have been able to achieve our supply chain optimization and industry compliance objectives whilst maintaining our position as market leader.”



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