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DKSH expands its business with a highly scalable solution from SAP and IBM

DKSH expands its business with a highly scalable solution from SAP and IBM

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The journey to develop a global ERP template started in 2005 and was based on SAP ERP applications, including Financials, Controlling, Materials Management, Sales and Distribution and Warehouse Management. SAP NetWeaver Business Warehouse will provide company-wide reporting and analytics capabilities, while SAP Business Objects Governance, Risk and Compliance (GRC) is being used to protect assets and information. The company also worked with IBM Global Technology Services to deploy IBM Power 570 and IBM Power 550 servers, running IBM AIX and a suite of IBM Tivoli software.



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The journey to develop a global ERP template started in 2005 and was based on SAP ERP applications, including Financials, Controlling, Materials Management, Sales and Distribution and Warehouse Management. SAP NetWeaver Business Warehouse will provide company-wide reporting and analytics capabilities, while SAP Business Objects Governance, Risk and Compliance (GRC) is being used to protect assets and information. The company also worked with IBM Global Technology Services to deploy IBM Power 570 and IBM Power 550 servers, running IBM AIX and a suite of IBM Tivoli software.



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Published by: IBM India Smarter Computing on Jan 07, 2013
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09/17/2013

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The Challenge 
 
After its merger in 2002, DKSH found that its heterogeneous, unconnected IT systems were preventing it from capitalizing on economies of scale and causing inconsistent levels of IT performance at different locations.Employees were spending too much time and effort consolidating information across the fragmented Enterprise Resource Planning (ERP) systems. These were inhibiting reliable company-wide reporting and monitoring, making it difficult to identify potential process improvements. Disaster recovery capabilities did not meet the company’s aggressive growth needs.
DKSH expands its business with a highlyscalable solution from SAP and IBM
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Overview
capabilities, while SAP Business Objects Governance, Risk and Compliance (GRC) is being used to protect assets and information.The company also worked with IBM Global Technology Services to deploy IBM Power 570 and IBM Power 550 servers, running IBM AIX and a suite of IBM Tivoli software.
 
The Benefits 
DKSH has gained an integrated,consistent ERP system based on SAP ERP, enabling it to exploit economies of scale to make significant efficiency gains. IT employees at DKSH spend less time managing ERP systems,and the highly reliable IBM Power servers reduce time spent resolving performance issues, boosting productivity. Using the global ERP template based on SAP ERP, DKSH can rapidly and effectively integrate new acquisitions into the company,allowing it to move into new markets faster and at lower cost. Total recovery from disaster, which used to take at least 24 hours, can now be achieved within two to four hours,increasing responsiveness and improving client service. Monitoring of performance – for example sales numbers and stock levels – enables DKSH to improve processes internally,and also feed this information back to clients as a value-added service, a key competitive advantage.
 
Key Solution Components 
Industry: Wholesale Distribution &Services Applications: SA
® 
ERP with modules including Financials, Controlling,Materials Management, Sales and Distribution and Warehouse Management, SAP NetWeaver 
® 
 Business Warehouse, SAP NetWeaver Business Warehouse Accelerator, SAP BusinessObjects Governance, Risk,and Compliance (GRC) Hardware: IBM 
® 
Power 570 and 550 servers, IBM System Storage 
® 
DS8700,DS4800 and DS4500, IBM System Storage 3584 Tape Library Software: IBM AIX 
® 
, IBM Tivoli 
® 
Storage Manager, IBM Tivoli Monitoring,IBM Tivoli Workload Scheduler, IBM Tivoli Netcool/OMNIbus, IBM Tivoli Composite Application Manager.Services: IBM Global Technology Services – deployment services 
 
The Solution 
The journey to develop a global ERP template started in 2005 and was based on SAP ERP applications,including Financials, Controlling,Materials Management, Sales and Distribution and Warehouse Management. SAP NetWeaver Business Warehouse will provide company-wide reporting and analytics 
 
to enhancements and changes. Withreporting and monitoring conductedon a location by location basis, gainingan overall view of operations washighly problematic, preventing DKSHfrom becoming the agile, responsiveand efficient company it wanted to be.Under the project name ‘Pegasus’,DKSH initiated a total transformationof IT systems in 2005. ImplementingSAP ERP and creating a SAPERP based global template havegiven DKSH the tools to optimizeprocesses across the company, whileaccelerating expansion. Implementingsoftware to facilitate better businessintelligence and analytics improvedtransparency for internal users,partners and clients who wanted totrack their performance. With reliable,scalable hardware supporting theseapplications, DKSH cut operationalcosts, minimized risk and ultimatelygained an essential competitive edge.
Lacking consolidation and scalability
DKSH conducted a review of internalprocesses and identified a need forconsolidation and standardization.Growing by acquisition had led tomultiple enterprise resource planning(ERP) applications in use acrossDKSH, including different versionsof SAP ERP, and solutions from JDEdwards, Scala and others. DisparateERP systems rendered it almostimpossible to undertake reliablecompany-wide monitoring or internaland external reporting.Matthias Legler, Vice President of ITat DKSH comments, “Often, we foundemployees from different locations‘re-inventing the wheel’ in cases wherechanges or enhancements neededto be made to the applications, whenHeadquartered in Zurich, Switzerland,but with a strong Asian presence formore than 140 years, DKSH focuseson providing market expansionservices for their business partners.It specializes in helping companiesbring products and services to market.Operating in 35 countries, DKSHhas 540 locations in the Asia-Pacificregion, and 20 in Europe and theAmericas. The organization consistsof four business units: ConsumerGoods, Healthcare, PerformanceMaterials and Technology; and withinthese, covers the five main areasof sourcing, research and analysis,marketing and sales, distribution andlogistics, and after-sales services.Employing 22,000 people, DKSHachieved sales of CHF 8,576 million in2009 (approximately 8,270 million USdollars).Following its merger in 2002,DKSH found itself with numerous,unconnected ERP systems at differentlocations, forcing the company totake an inefficient, ad hoc approach
“Since implementing the IBM Power serversand DS storage, wehave experienced 100 percent uptime in termsof server operation. The performance, reliability and stability of our hardware platform arebetter than ever before,and we can easily growthe system to keep upwith the pace of thedynamic growth of  DKSH.” 
 Matthias Legler, Vice President of IT atDKSH
 
a similar procedure had already beenundertaken successfully elsewherein DKSH. We wanted to adopt a moreeffective approach, spreading bestpractices throughout the organization,accelerating progress and saving timeand expense; so we began looking tostandardize on the ERP system thatbest met our needs.“Also, we were finding it very difficultto consolidate information from themultiple ERP applications. This washolding us back from analyzing thecompany’s performance as a whole:for example, gathering importantinformation needed for corporate-leveldecision-making was a highly complexand time-consuming process.”The company faced a similarchallenge with its underlying ITinfrastructure, as different locationshad a mixture of IBM, HP, SunMicrosystems and Intel servers, somerunning Microsoft Windows operatingsystems, others supporting UNIXlandscapes. The mixed landscapewas highly complex to manage andmaintain.Furthermore, the legacy hardwarelacked flexibility and scalability,presenting significant barriers togrowth.
Pegasus takes flight
DKSH initiated project ‘Pegasus’ in2005, with goals including the increaseof efficiency through centralizationand the development of a platform tofacilitate growth and enhancementof IT management. The companyselected SAP ERP, with modules forFinancials, Controlling, MaterialsManagement, Sales and Distributionand Warehouse Management.
“DKSH prides itself onits ability to penetratenew markets rapidly,with limited risk and without incurring highcosts – SAP ERP is akey enabler to achievethis core business goal.” 
 Matthias Legler, Vice President of IT atDKSH
The operations and business supportteams at the IT headquarters in KualaLumpur planned to develop a globaltemplate based on SAP ERP, to be rolledout to DKSH locations. These locationscould use the template to easily andquickly deploy a pre-configured,standardized ERP system, which isintegrated with the central hub in KualaLumpur. Local IT teams were then ableto tailor this to suit their needs, makingadjustments to suit the location’s marketand operations.“Our business is highly diverse, andtherefore each DKSH business unitneeds specific functionalities of the SAPapplications,” says Legler. “On the otherhand a lot of ‘me too’ processes arecommon and can be harmonized. Bycreating a global ERP template basedon SAP ERP, we are able to reap thebenefits of a standardized and quickroll-out without neglecting the specificneeds of different business areas.”
Supporting business expansion
The global template would also be usedwith every new acquisition, enablingDKSH to replicate its business modelrapidly and efficiently at new locations.Legler explains, “Our global SAPenvironment gives us a significantcompetitive edge by acceleratinggrowth into new markets withoutsacrificing the standard of ouroperations. We are able to ‘dock in’new business much faster, and sincethe template delivers the ERP solutionfully integrated with our headquartersoperations and our global data centre,we avoid the risk of ending up with thedispersed systems we had before.“DKSH prides itself on its ability topenetrate new markets rapidly, with
TECHNICAL LANDSCAPEServers:
IBM Power 570 and Power550 servers replacing SunMicrosystems and HP hardware, IBMSystem Storage DS8700, DS4800 andDS4500, IBM System Storage 3584Tape Library.
Software:
IBM Tivoli Storage Manager,IBM Tivoli Monitoring, IBM TivoliWorkload Scheduler, IBM TivoliNetcool/OMNIbus, IBM TivoliComposite Application Manager(ITCAM). SAP ERP, SAP NetWeaverBusiness Warehouse, SAP NetWeaverBusiness Warehouse Accelerator, SAPBusinessObjects Governance, Risk,and Compliance (GRC).
Users:
SAP ERP: more than 5,000internal users. SAP NetWeaverBusiness Warehouse: 1,500 externalusers.

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