When Dr. Reddy’s Laboratories, Ltd., a $2 billion pharmaceutical giant based in Hyderabad, India began looking for a provider with deep understanding of supply chain management and a strong SAP supply chain solutions practice, senior management quickly focused on Deloitte as a leading candidate.
The search began as operations management at the company recognized the potential for improving production performance at one of their major plants in Hyderabad, called FTO3, based on rated capacities and actual outputs. They were looking for help in exploring ways to address performance more effectively. The production scheduling process, a complex and difficult exercise involving many products and machines in the factory, was carried out manually on Excel sheets with no real-time integrity of their business master and transaction data. Moreover, manual scheduling found it difficult to reap production scheduling efficiencies, while adhering to the rules particular to the pharmaceutical industry, which are mandated and monitored by agencies, such as the FDA (U.S. Food and Drug Administration). The company had realized that lack of an efficient scheduling tool was lowering overall throughput and resulting in loss of key market opportunities.
After several meetings to discuss the issues, challenges, and possible approaches, Deloitte was selected from among other consultants and engaged to develop a Proof of Concept (PoC) first, the success of which led to the main implementation project. The ultimate solution involved utilization of the SAP SCM APO solution. In addition, certain important functionalities of master data and CIF have also been implemented on both SAP ECC and SAP APO. The production scheduling and production execution departments of the FTO3 factory in Hyderabad use the solution, and there are a total number of about 30 business users.
Kudos from the VP and CIO, heading the IT and BPE (Business Process Excellence) functions
The client’s VP and CIO, Mr. Atanu Roy, hailed...