Geneva Pharmaceuticals and ERP Implementation
Case 1: Geneva Pharmaceuticals ERP Implementation
Summary: This case discusses Geneva Pharmaceuticals and the much needed ERP implementation within the organization. Geneva is one of the world’s largest generic drug manufacturers. Geneva needed new organization within the company to help better manage the over 200 SKUs in different size packages. Their old way of doing business caused confusion and errors resulting in setbacks and overall negatively affecting the company. Realizing this, management at Geneva searched for a new ERP system to implement to solve these issues. After weighing the pros and cons of two different ERP systems, Geneva decided on implementing BPCS in their branded drug divisions and the generics agreed to implement R/3. That plan would be implemented in three phases which each had separate goals to fulfill to improve operations within Geneva. The case discusses some of the setbacks Geneva encounters with implementation and how an initial switch to a new ERP system can be challenging. Getting through the implementation challenges opened new doors for Geneva and allowed them to compete in the competitive industry of pharmaceutical drugs.
1. Create a graphical representation of the Geneva Pharmaceuticals supply chain.
2. Discuss what you think is the major flaw in the business decision process for Geneva’s old way of doing business.
The major flaw in Geneva’s old way of doing business is the fact that their distribution, manufacturing, and sales departments don’t coordinate their moves. This means that the company is not efficient and doesn’t have a clear strategy. On one side, we have the manufacturing process that produces a lot of SKU’s which adds the complexity of the process and makes the forecasting for each product even higher. This wouldn’t be a bad thing if the company had highly customizable products, but taking into consideration that they don’t bother distributing to end customers, having so many
Summary: This case discusses Geneva Pharmaceuticals and the much needed ERP implementation within the organization. Geneva is one of the world’s largest generic drug manufacturers. Geneva needed new organization within the company to help better manage the over 200 SKUs in different size packages. Their old way of doing business caused confusion and errors resulting in setbacks and overall negatively affecting the company. Realizing this, management at Geneva searched for a new ERP system to implement to solve these issues. After weighing the pros and cons of two different ERP systems, Geneva decided on implementing BPCS in their branded drug divisions and the generics agreed to implement R/3. That plan would be implemented in three phases which each had separate goals to fulfill to improve operations within Geneva. The case discusses some of the setbacks Geneva encounters with implementation and how an initial switch to a new ERP system can be challenging. Getting through the implementation challenges opened new doors for Geneva and allowed them to compete in the competitive industry of pharmaceutical drugs.
1. Create a graphical representation of the Geneva Pharmaceuticals supply chain.
2. Discuss what you think is the major flaw in the business decision process for Geneva’s old way of doing business.
The major flaw in Geneva’s old way of doing business is the fact that their distribution, manufacturing, and sales departments don’t coordinate their moves. This means that the company is not efficient and doesn’t have a clear strategy. On one side, we have the manufacturing process that produces a lot of SKU’s which adds the complexity of the process and makes the forecasting for each product even higher. This wouldn’t be a bad thing if the company had highly customizable products, but taking into consideration that they don’t bother distributing to end customers, having so many
Bibliography: 1. BPCS Data Collection. (2011). Data Collection Software, RFID, Tools, Methods. Retrieved October 20, 2011, from http://www.datacollectionsoftwares.com 2. Infor. (2009). Infor ERP LX. Retrieved October 18, 2011, from http://www.infor.com/content/brochures/update-bpcs.pdf/