\nHealthcare<\/li>\n
\nMelbourne, Australia<\/li>\n
\n1,200 pharmacies<\/li>\n<\/ul>\n
[\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Customer Stats” _builder_version=”4.16″ custom_margin=”0px||0px|” custom_padding=”0px||0px|” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n
- \n
- SPS Products:<\/strong>
\nCommunity, Fulfillment<\/li>\n- ERP:<\/strong>
\nIBM ASW<\/li>\n<\/ul>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ custom_padding_last_edited=”on|desktop” admin_label=”section” _builder_version=”4.16″ background_color=”#ffffff” custom_padding_tablet=”50px|0|50px|0″ custom_padding_phone=”” transparent_background=”off” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” global_colors_info=”{}”][et_pb_row padding_mobile=”off” column_padding_mobile=”on” module_class=”full-width-text” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Summary Text” module_class=”nomargin-top” _builder_version=”4.16″ use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]<\/p>\n
Executive Summary<\/h2>\n
Australia\u2019s largest healthcare provider transforms its trading relationships with\u00a0SPS Commerce\u2019s cloud-based Fulfilment EDI and supplier onboarding solutions to improve efficiency, add visibility, and eliminate manual accounts reconciliation.
\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ custom_padding_last_edited=”on|desktop” _builder_version=”4.16″ background_color=”#f6f6f6″ background_image=”https:\/\/www.spscommerce.com\/wp-content\/uploads\/2017\/09\/2017-Facet-Grey_Medium.png” custom_padding_tablet=”50px|0|50px|0″ custom_padding_phone=”” transparent_background=”off” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” global_colors_info=”{}”][et_pb_row column_structure=”1_3,1_3,1_3″ padding_mobile=”off” column_padding_mobile=”on” module_class=”case-study” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_blurb title=”The Challenge:” use_icon=”on” font_icon=”r||divi||400″ admin_label=”Challenge” _builder_version=”4.16″ text_orientation=”center” background_layout=”dark” animation=”off” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]Limited efficiencies\u00a0and supply chain visibility.
\n[\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_blurb title=”The Solution:” use_icon=”on” font_icon=”R||divi||400″ admin_label=”Solution” _builder_version=”4.16″ text_orientation=”center” background_layout=”dark” animation=”off” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]SPS Commerce Fulfillment and Community to rapidly onboard vendors.
\n[\/et_pb_blurb][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_blurb title=”The Results:” use_icon=”on” font_icon=”i||divi||400″ admin_label=”Results” _builder_version=”4.16″ text_orientation=”center” background_layout=”dark” animation=”off” use_border_color=”off” border_color=”#ffffff” border_style=”solid” global_colors_info=”{}”]127 percent of vendors are EDI-compliant.
\n[\/et_pb_blurb][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ global_colors_info=”{}”][et_pb_row padding_mobile=”off” column_padding_mobile=”on” module_class=”full-width-text” _builder_version=”4.16″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_text admin_label=”Body Text” module_class=”nomargin-top case-study” _builder_version=”4.16″ use_border_color=”off” global_colors_info=”{}”]<\/p>\nBusiness Challenge<\/h2>\n
Sigma Healthcare is one of Australia\u2019s largest pharmaceutical wholesalers, with around $4.0bn annual revenue from wholesaling and distributing prescription, over-the-counter, and general pharmacy products to pharmacies across the country.\u00a0 Sigma also has one of the largest pharmacy networks in Australia, with around 1,200 pharmacies operating under one of Sigma\u2019s brands or through our independent pharmacy offer.\u00a0 Approximately 20% of consumer spend in pharmacy is through one of Sigma\u2019s five pharmacy brands, which includes Amcal, Guardian, PharmaSave, Chemist King and Discount Drug Stores (DDS).\u00a0 Sigma supplies an additional 2,800 retail pharmacies, from 15 distribution centres around the country.\u00a0 Sigma offers 15,000 SKUs and receives 600+ orders daily, for more than a million deliveries annually.<\/p>\n
Sigma Healthcare outlined a vision to increase business development activities, concentrating on broadening the business base to be less reliant on PBS products, maximising efficiencies through the supply chain, and bringing a sharper customer focussed approach.\u00a0 \u2018Project Renew\u2019 was instituted for a whole-of-business review of end-to-end processes, to streamline the business and maximise efficiencies and services to customers.\u00a0 Although the Sigma Healthcare (nee Sigma Pharmaceuticals) value chain had been connected for EDI automation for more than a decade, low adoption of Fulfilment EDI by Sigma\u2019s trading partners limited the efficiencies and supply chain visibility gains that could have been realised.\u00a0 Of the 500 suppliers Sigma typically orders from, less than 20% had been connected for automated receipt of Sigma\u2019s orders, and only a handful for automated invoice returns, necessitating manual reconciliation of order\/invoice\/delivery in most instances.\u00a0 Operationally, Sigma therefore sought a solution that would onboard current and future suppliers quickly and efficiently, for exchange of orders and invoices, to maximise the benefit of automated fulfilment and free team members for proactive work.<\/p>\n
Sigma Healthcare, as part of the meta Project Renew programme, went to market seeking a more effective Fulfilment EDI solution, incorporating a reliable supplier network onboarding solution.\u00a0 Within that requirement, and against a backdrop of numerous concurrent modernisation programmes, Sigma recognised that a new Fulfilment EDI partner would need to take leadership in project management to minimise calls on the Sigma team\u2019s time.<\/p>\n
Solution<\/h2>\n
Following consultation and a tender process, Sigma Healthcare partnered with SPS Commerce, Inc. as an outsourced Fulfilment EDI partner.<\/p>\n
The Sigma project scope had three broad elements for immediate concurrent deployment; connecting Sigma to the SPS Commerce retail network, migrating Sigma\u2019s connected suppliers, and enabling turnover orders and invoices \u2013 all to be accomplished without any downtime or disruption.\u00a0 Turnover orders and invoices are commonly used in retail pharmacy, and enable the manufacturer of a pharmacy product to process orders to Sigma for sales made directly to retail pharmacies.<\/p>\n
Michael Bignell, head of operations planning supply chain for Sigma Healthcare, said the tender process showed SPS Commerce to be the obvious choice.<\/p>\n
\u201cNot only did SPS Commerce offer a solution encompassing every one of our needs, but it was done at a significant hard cost saving. SPS acts as our outsourced EDI department, rather than just providing a technology platform.\u00a0 For the Sigma team, that means we take a step back and let SPS get on with it.\u00a0 Knowing that the SPS model incentivises growing the number of onboarded Sigma suppliers, which lets us maximise our efficiencies, added to our confidence going in.\u201d<\/strong>
\n\u2013 Michael Bignell, Head of Operations Planning Supply Chain, Sigma Healthcare<\/em><\/p><\/blockquote>\nIntegration of Sigma Healthcare with SPS Commerce<\/span><\/h2>\n
SPS Commerce retail implementation specialists analysed Sigma\u2019s business processes, preparing message implementation guidelines (MIGs) congruent with the people, systems, and aims.\u00a0 These MIGs were implemented with Sigma\u2019s IBM ASW enterprise resource management (ERP) business system, and connected with the SPS retail network.\u00a0 SPS consultants integrated GS1-compliant rules and norms, consistent with Sigma\u2019s openness to learning from other industries and categories.\u00a0Bignell noted that the company\u2019s focus on supply chain efficiency and velocity is an early trend for Healthcare, and that the rapid pace of change is exciting for the magnificent opportunity it offers.\u00a0 \u201cOur decision-making team has a varied background, with vastly distinctive experience that makes us collectively stronger,\u201d he said, describing the robust strength that comes from drawing on colleague\u2019s experience in grocery, mining, ecommerce, and more.<\/p>\n
Cassandra Temple, supply chain systems manager with Sigma Healthcare, said that with this information incorporated into the project specification and discovery, the integration was conducted with minimum fuss and managed effectively by the SPS Commerce team.\u00a0 \u201cSPS Commerce project managed and completed the migration.\u00a0 I was able to get on with my other responsibilities, as the implementation was smooth and progressed to the project timeframe \u2013 and most importantly, as a company we didn\u2019t miss a beat,\u201d said Temple.<\/p>\n
Turnover Orders and Invoices <\/span><\/h2>\n
Turnover orders and invoices are vital to the smooth front-facing operations of Sigma Healthcare.\u00a0 They support the common pharmacy procurement model under which manufacturers promote products to pharmacy managers and buyers, with orders placed by the manufacturer\u2019s representative direct to the distributor Sigma for delivery to the retail pharmacy. \u00a0From consultation with Sigma business process owners, the SPS implementation brought turnover order data directly into Sigma\u2019s ERP, processing more than 10,000 orders per month for speedy despatch of these frequent orders.<\/p>\n
Angela Hariohoedojo, general manager and vice president of SPS Commerce APAC, has worked with diverse industries across her career and says that SPS Commerce\u2019s strength is providing an adaptable solution unconstrained by technology.\u00a0 \u201cTurnover orders have been used by Sigma Healthcare, and other large Australian pharmaceutical suppliers, since the introduction of mobile ordering technology,\u201d she said.\u00a0 \u201cOur supply chain strategists worked with Sigma\u2019s business systems and requirements to deliver a seamless transition in this important and \u2013 for Sigma \u2013 customer-facing process.\u201d\u00a0 Hariohoedojo said that incorporating industry-specific order management methods is central to the SPS value proposition, connecting the retail ecosystem.<\/p>\n
Migration and Expansion of Sigma Suppliers for Automated Fulfilment EDI <\/span><\/h2>\n
A top-line issue for Sigma was the rapid onboarding of their supplier community, for automated exchange of EDI documents, in order to secure considerable efficiencies for the Sigma logistics and accounts teams.\u00a0 Sigma expressed that SPS Commerce\u2019s community onboarding solution, designed to onboard entire supplier networks within 3 months, was key to their partnership decision.<\/p>\n
Commenting on the migration, Bignell reflected on the small number of suppliers that had been connected previously.\u00a0 \u201cAfter 14 years, having less than a quarter of our supplier network connected was frustrating.\u00a0 We\u2019d had the technology in place all that time, but SPS brought us a solution \u2013 a change management solution, as well as the technology.\u00a0 The solution model encourages SPS to connect every one of our suppliers,\u201d he said. Bignell described his goal of all team members being 100% employed on proactive, value-adding activities.\u00a0 \u201cManually reconciling orders, order changes, delivery notifications, and invoices is a huge task that, these days, should be handled digitally,\u201d he said.\u00a0 \u201cWe have more than enough proactive work for the team to do, that could be value-adding into the supply chain and making us more effective, efficient, and profitable.\u00a0It is early days, but already I am closer to one of my more simplistic goals of entirely eliminating faxes from our supply chain!\u201d<\/p>\n
SPS Commerce migrated the connected suppliers, which due to some new suppliers seeking connection was statistically more than 100% successful.\u00a0 \u201cTechnically we brought 127% of Sigma\u2019s suppliers on board,\u201d laughed Hariohoedojo.\u00a0 \u201cWe work with our partners for a congruent partnership, which in this case meant staging project phases throughout the year.\u00a0 There was some noise and we worked with Sigma through that in partnership, but that said we also had some early wins!\u00a0 Sigma is a sophisticated business with a mature and multifaceted supply chain \u2013 which is typically where we shine,\u201d she said.\u00a0 \u201cGenerally in Australia, we achieve 80% – 95% supplier onboarding for our retail and distribution partners, similar to our global colleagues, working in accordance with our battle-tested best practices.\u201d<\/p>\n
Results and Next Steps<\/h2>\n
Sigma Healthcare has plans for evolving the SPS Commerce partnership, to further expand its network of connected trading partners.\u00a0 In considering the SPS Commerce project and the changing face of healthcare and pharmacy, Cassandra Temple reported that a meaningful number of trading partners are themselves undergoing supply chain and logistics transformation, with ERP migrations and their own Fulfilment EDI initiatives.\u00a0This added to the reflection that the sector trend is toward modern supply chain integration methods, as efficiency and effectiveness drivers magnify in Australia.<\/p>\n
An aspect of this was the increased emphasis placed on building truly symbiotic and mutually supportive trading partner relationships, she said \u2013 and that trading partners loved finding new orders active in their systems in the morning.\u00a0\u201cOur trading partner master data is probably better than it has ever been, and our partnerships stronger than ever,\u201d said Temple.\u00a0 \u201cWe have an elevated opportunity to communicate with our trading partners, a fresh opportunity to engage them as partners in our transformation.\u00a0 They value that as much as we do, and it was all part of the change process we took with SPS,\u201d she said.<\/p>\n
Michael Bignell said that the scale of Project Renew means that it will be a long and far-reaching project and that the SPS Commerce portion is considered very successful.\u00a0\u201cEfficiency comes from a lot of initiatives combining to realise our extensive project objectives.\u00a0 We\u2019ll be able to map success metrics across time spent in manual data entry, supply chain velocity, invoice processing, and inventory profile change this year, and make some hard quantifications of savings and efficiencies,\u201d he said.<\/p>\n
\u201cThe Sigma team is transforming to an entirely proactive style of work, and it is exciting to imagine the new opportunities we\u2019ll discover along the way.\u201d
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![\"VHC](\"https:\/\/www.spscommerce.com\/wp-content\/uploads\/2018\/01\/vhc_brands-01-300x225.jpg\")
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