Agri-Business and Life Sciences Industry: Reaping What You Sow with Data Analytics
Part 1 of the blog series “Integrated Business Planning as core value driver in key industries”.
Co-authored by Alina Gross and Öykü Ilgar
Making use of data analytics in the life science industry enables organizations to generate great value. The increase of deploying new technologies such as cloud computing, automation, machine learning, blockchain and the Internet of Things leads to a massive increase of various data sources. In the past years, the way platforms manage this great data volume is evolving rapidly towards handling business operations more efficiently and effectively. Achieving deeper transparency into the supply chain allows life science and agri-business manufacturers to focus more on creating value in diversified areas.
“With SAP Integrated Business Planning we are improving forecast accuracy. We can make our supply chains more efficient, we can better predict and plan. So overall, we can be reliable in terms of meeting that demand.”
Angela Olson, Global Solution Owner & Architect, Supply Chain Planning, Cargill ______________________
Achieving accurate and on time data integration across the supply chain and especially outside of the life science organizations to allow analytics on a greater scale was easier said than done back then. Today, it is an imperative to collect, ingest, process, orchestrate, and consume data at enormous scale in order to run with better efficiency.
“SAP Integrated Business Planning helps us improve inventory placement to maximize sales revenue opportunities, while minimizing working capital at Syngenta. And with a reduction in time spent forecasting each month, we can focus more on servicing the farmers and channel partners who depend on us.”
Austin Parrish, Head of Business Planning, Syngenta AG ______________________
Providing secure products to patients on time in more markets is a challenging task for life science organizations. Low demand accuracy is one of the challenges which impairs service levels and leads to stock outs despite existing inventory. Growing product and network complexity may lead to demand volatility as well as high supply risk. Syngenta, one of the leading life science organizations, implemented SAP Integrated Business Planning (SAP IBP) and is now able to gather real time insights and monitor real time data on aggregated and detailed levels, as well as operational planning. Improvement in statistical forecasting based on demand variability and business importance helped Syngenta to reduce lost sales by nearly 20%, which increased overall accuracy by 10%.
“SAP Integrated Business Planning has become the key solution in the IBP process for our medicines. It is the place that has the numbers everyone needs.”
Jean-Luc Hospital, Director CoE Demand Management and IBP, Merck KGaA
One set of fully transparent numbers by volume and currency that is connected to the financial system and real time calculation, facilitates the operational usage and saves time. Achieving better transparency across the supply chain by using one common forecasting platform for supply chain, controlling, and commercial operations enables organizations to close the gap between financial and operational planning. Jean-Luc Hospital, Director CoE Demand Management and IBP at Merck KGaA, highlighted the business benefit that Merck is experiencing through the integration of one common platform.
“In our healthcare business, efficient demand planning is the first critical element to ensuring best-in-class service levels while maintaining financial performance. It was crucial for us to have a solution that could easily manage supply chain and financial forecasting on one common platform.”
Jean-Luc Hospital, Director CoE Demand Management and IBP, Merck KGaA ______________________
“Rapid implementation, high user adoption, and enhanced capabilities of SAP Integrated Business Planning for sales and operations were key success factors for completing the project.”
Dr. Ralf Mohrschladt, VP of Operations Development, Global Operations, Gruenenthal GmbH
For life science industries, the ability to innovate is critical to respond to patient needs in todays connected marketplace. SAP Integrated Business Planning (SAP IBP) provides perfect supply chain optimization so that companies can reap what they sowed.
Also read the other parts of my blog series:
Part 2 “How Integrated Business Planning can Help Mill Companies Adopt a Circular Economy
Part 3 “How Integrated Business Planning Helps Put Your Products on Top of Consumers’ Minds” That Benefits Itself, the Planet, and the Economy”
Quotes & Customer Cases
Explore Further on the Buying SAP IBP Frequently Asked Questions
Get More Details on SAP IBP Applications with the IBP Online Documentation