Shanghai Pharmaceutical Adopts Manhattan Associates' Warehouse Management Solution
Supply Chain Provider to Power Leading Medicine Distributor
3/2/2005 8:30:40 AM
SHANGHAI, China, March 2, 2005 /PRNewswire-FirstCall via COMTEX/ -- Manhattan Associates (MANH), the global leader in providing supply chain execution and optimization solutions, announced that it is implementing its Warehouse Management solution at Shanghai Pharmaceuticals Co., Ltd (SHSE: 600849), a leading medicine distributor in China.
Shanghai Pharmaceutical has an established medicine distribution network, headquartered in Shanghai, which services the entire country of China. Mainly targeting the high-end market (including grade two and three hospitals), it is the China general distributor for 35 multinational pharmaceutical companies and the only member from China that belongs to the International Pharmaceutical Wholesaler Association (IPWA).
In December 2004, Shanghai Pharmaceutical announced that it would spend USD 22.5 million to upgrade its logistics and IT facilities and construct a distribution center that is among the top in both China and all of Asia. With Priority from both the Shanghai Municipal Government and the Shanghai Pharmaceutical Group Co., Ltd, the initiative is listed as a crucial technology project in Shanghai. Additionally, it is one of eight key projects funded by treasury bonds and will become a role model for the entire logistics industry in China.
Baoxing Dong, vice president of the logistics project at Shanghai Pharmaceutical, stated, "We were looking to establish a logistics system that would not just manage the warehouse and logistics facilities, but would serve as an independent, open and intelligent system so our regional companies and chain pharmacies could run on the same platform. This will enable us to dramatically drive down costs throughout our distribution network. The comprehensive Warehouse Management solution from Manhattan Associates meets this demand."
Shanghai Pharmaceutical selected Manhattan Associates, based in Atlanta, Georgia, U.S., and founded in 1990, as its supply chain execution and optimization solution provider. Manhattan Associates launched its China operation in 2004 and has about 20% of the global market share for warehouse management software due to its focus on helping companies better manage goods from source to consumption. Manhattan Associates has considerable experience and expertise in the pharmaceutical and life sciences industry with clients around the globe. The cooperation between Shanghai Pharmaceutical and Manhattan Associates has already drawn the attention of many other parties in China, Asia Pacific and in the pharmaceutical industry as whole.
"The pharmaceutical industry has some of the most complicated demands of any industry, with a legion of medicine names and categories, regulatory mandates, requirements on storage temperature and humidity and frequent turnover of inventory. As a result, the industry is particularly demanding when it comes to warehouse management," according to Dong. "The Warehouse Management solution from Manhattan Associates is able to help us optimize inventory positions and allocate the best points of storage for goods that have different turnover rates. The result is more efficient sorting and lower labor costs. As turnover rates change with market swings, the solution is flexible enough to automatically recalculate the optimal placement of goods. This is exactly what we were aiming to accomplish."
"Medicine dealers in China are facing unprecedented pressure to cut prices as the mass public becomes increasingly vocal in their complaints over excessive inflation in medicine prices, and the government has taken measures to curtail this," commented Jeff Baum, Manhattan Associates' senior vice president of international operations. "There is considerable cost in the supply chain that can be further reduced through more effective supply chain management."
After full implementation of the solution, which includes staff training, distribution centers throughout Shanghai Pharmaceutical's network will be able to effectively connect, consolidate and control warehousing and logistics facilities, and to share resources. Manhattan Associates' solution integrates with Shanghai Pharmaceutical's existing ERP system to create a modern supply chain information platform that links suppliers, distributors and customers. The result will be improved marketing, better warehouse management capacity and lower supply chain costs.
About Shanghai Pharmaceutical Co., Ltd
Shanghai Pharmaceutical Co., Ltd is the largest pharmaceutical company in China and the most extensive in geographic coverage and strongest in composite competitiveness. It mainly deals in the distribution of western medicines, Chinese herbal medicines, medical equipment and health products. For many years in a row, it has been elected to the top 50 listed companies in China and the top 15 profitable companies in Shanghai. The Shanghai Pharmaceutical Logistics Center it commissioned will lower its operating costs, accelerate inventory turnover and make central procurement possible for the company. More importantly, it allows Shanghai Pharmaceutical to lead its peers by introducing a third-party logistics platform with added value in addition to fast and easy logistics and information services to suppliers, distributors, pharmacies and end-users.
About Manhattan Associates
Manhattan Associates, Inc., is the global leader in providing supply chain execution and optimization solutions. It enables excellence through its warehouse, transportation, distributed order management, reverse logistics and trading partner management applications, as well as its RFID, performance management and event management capabilities. These Integrated Logistics Solutions(TM) leverage state-of-the-art technologies, innovative practices and our domain expertise to enhance performance, profitability and competitive advantage. Manhattan Associates has licensed more than 900 customers representing more than 1,600 facilities worldwide, which include some of the world's leading manufacturers, distributors and retailers. For more information about Manhattan Associates visit www.manh.com .
SOURCE Manhattan Associates, Inc. |
