INSTITUTE OF BUSINESS MANAGEMENT

SANOFI AVENTIS
SUBMITTED TO: SIR MOIN ALI KHAN

12/24/2018

Report by: (Ausaf Ali-20319, Vimal Kumar-20463, Shamama Irfan-17926, Madhu

Kumari-20432, Priya- 21322)
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Table of Content

1. Letter of Acknowledgement…………………………….(3)
2. Objective…………………………………………………(4)
3. Executive summary……………………………………..(4)
4. Methodology…………………………………………….(4)
5. Introducton to sanofi……………………………………(4)
6. Sales and distribution module………………………….(6)
7. HR module………………………………………………(15)
8. Warehouse management module………………………(19)
9. Accounting and Finance module……………………….(22)
10. Supply chain module……………………………………(28)
11. Conclusion………………………………………………(30)
12. Referrences………………………………………………(30)
13. Turnitin index…………………………………………….(31)
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Letter of Acknowledgement
4 Dec, 2018
This report is based on evaluation of different modules of ERP system in Sanofi Pakistan and
analysis of different modules by conducting interview. This report has been prepared as a final
term project for our course ‘Introduction to ERP’. The material compiled and presented in this
report is a result of data collected from different literatures and interview.
This report has provided us great experience and knowledge of modular ERP system. For this,
we would like to thank our instructor ‘Sir Moin Ali khan’ for providing us this opportunity, as
well as his guidance.
Sincerely,
Ausaf Ali-20319
VimalKumar-20463
Shamama Irfan-17926
Madhu Kumari-20432
Priya Kumari-21322
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Objective
Objective of this report is to evaluate ERP and its modules in Sanofi Pakistan, whether ERP
system (SAP Unity) helps different departments performing activities and whether it is beneficial
for the organization.

Executive summary
With the passage of time, organizations have realized importance of ERP as it helps in
streamlining different business activities in different departments of organization. ERP means
certain way of doing business; therefore, organization must manage their culture, and change that
ERP is bringing before ERP implementation. This report evaluates different modules of ERP
system associated with different departments of organization such as financial accounting
module, HR module, Sales and distribution module, Supply chain module, and Warehouse. This
report also explains benefits that Sanofi reaped after implementation of ERP system. Financial
accounting module helps in creating financial statements which is used internally for cutting the
cost and externally for reporting it to the investors. HR module helps in estimating compensation
package, training employees, appraising performance, ensuring attendance of employees and
managing travel expenses. Sales and distribution module helps in recording sales order, and
records information about customer like address, name , and pricing of product. Supply chain
helps Supply chain department from receiving raw materials from suppliers to work-in-process
goods to finished product being delivered to customer. Warehouse ensures timely delivery to
customers and it helps in packaging, and delivery of product to customers. After implementation
of ERP, Sanofi has reaped huge benefits and it has increased their operation efficiency as it
increases effectiveness of different departments through their different modules; hence, increased
operational effectiveness leads to reducing the cost which means ERP system is cost-efficient.

Methodology
Study that we have conducted is based on empirical research after conducting interview. We
prepared questionnaire for our participant who is in finance department of Sanofi that how ERP
helps Sanofi and is beneficial for company. Based on different literatures, we identified different
modules of ERP helps company gaining many benefits like cutting cost and making company
cost-efficient.

SANOFI
Sanofi is a global organization which turned into the fifth biggest pharmaceutical organization in
2013 with its headquarter situated in Gentilly, France. In 2004, Sanofi-Synthélabo converged
with Aventis and renamed itself to "Sanofi Aventis". Nonetheless, in May 2011 the organization
changed its name to "Sanofi". A crucial job is played by the innovative work division at Sanofi
and assembling and promoting of pharmaceutical medications basically in the market of meds is
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the center business of Sanofi. Sanofi has around 7 corrective territories which are as per the
following:
1. Cardiovascular
2. Inward Medicine,
3. Immunizations
4. Thrombosis
5. Diabetes
6. Oncology
7. Focal sensory system

Strategy of Sanofi
There is a belief system that is trailed by Sanofi in the general association which are seizing open
air extension openings, progression in innovative work and tolerating the organization's model to
future chances. The point of Sanofi is to oblige and help over a populace of 7 billion with a solid
way of life and doing that with the assistance of more than 110,000 workers put in more than 100
nations.

Mission
1. Shaping tomorrow’s Health:
As analysts, they are remarkably intense and confident in light of the fact that in research what
will occur in coming a long time from now will be dictated by what will be done in coming days.
They create drugs with the assistance of researchers that fix the illnesses looked by the patients.

2. From Science to Solutions:

The innovative work of Sanofi are focused on changing this new investigation into human
services answers for patients. In the previous years, they have made meds which assist their
patients with getting restored in a flash. Be that as it may, insofar as individuals live longer the
an ever increasing number of infections they confront and to treat the proficiently the innovative
work assumes an imperative job in giving them a medication which fixes them in a flash. They
confront infections like diabetes, malignant growth or cardiovascular ailments. The objective of
the organization is to give an answer that enhances their lives.

3. Understanding the Needs of the Patients Better:

Sanofi trusts that to be genuinely new and to convey enhanced treatment choices to patients; they
should comprehend the requirements of the patient and how the illness of the patient influences
the patient's regular day to day existence. Through their bits of knowledge, the organization
creates the arrangement which fixes the general population.
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Sanofi's point is to associate basic research dependent on creature models and clinical research
dependent on individuals to help with the goal that it help them in revelation of the logical
disclosures of the clinical patients. This will be more successful and focus on the medications of
their patients. This requires a decent correspondence between the innovative work divisions.

4. Social Commitment:

The fundamental motivation behind Sanofi is to moral pharmaceuticals and their need is to battle
the sicknesses which influence the general population's wellbeing. Sanofi Pakistan is being
assisted with the researchers abroad so they can construct mainstays of social insurance for
patients. They are notable for their gifts of medications and immunizations and long haul
exercises by the organization. They additionally direct projects for human services and the
manner by which individuals can remain shielded from the diverse sort of sicknesses.
Sanofi's main goal is to spare individuals have a more advantageous life. In Pakistan, because of
uneducated individuals, they need to dispatch distinctive projects to give them the possibility of
the sicknesses and reveal to them the manner by which they can't get influenced.

Vision
To be the most respected and best-in-class human services accomplice upgrading the personal
satisfaction through counteractive action, fix and advancement with responsibility towards
society and condition.

Sanofi Pakistan

The point of Sanofi-Aventis in Pakistan is to assist patients with the prescriptions and items that it
fabricates. There are some notable results of Sanofi, some of which are Tritace, Telfast, Plavix, Clexane,
Claforan, Avil, Amaryl, Flagyl, Selsun Blue, Seacod, Frisium, Nivaquine-P and Tarivid and so forth.
Sanofi fabricates drugs in different classes, for example, Diabetes (Oral Anti-Diabetics), Diabetes
(Insulins), Cancer, Urology, Allergy Management, Cough and Cold, Sleep Disorders, Emergency Care
and so forth.

Sales and Distribution: (Done by: Madhu Kumari)

Literature Review of SD Module in ERP:
The most significant module of SAP is Sales and Distribution (SD) Module. All of the major
processes are handled by (SD) module from order to delivery. In today’s competitive Business
atmosphere, industries and firms are progressively being forced to streamline business processes.
In a world where it is no longer enough to have the simple best product, firms are now more
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focused towards their core competencies and closer partnerships over the entire set of Supply
chain.
The business processes executed by SAP SD are used in selling, shipping and billing of product
and services. It handles the activities of Sales and Distribution. Order and logistics management
are the comprehensive part of SD Module. So, many of the systems are integrated tightly with
both the Distribution Requirement Planning (DRP), the engine of the ‘just-in-time’ deliveries.
This integration maps the supply of single site or multi-site organization. This method also can
generate replacement orders by victimization of warehouse necessities.
Sale and Distribution module of ERP consists of all master data, system configuration and
transactions to complete the process of Order to Cash. The main functions of Sales and
Distribution are
• Inquiries and Quotes.
• Sales order.
• Sales returns.
• Consignment.
• Contracts and scheduling agreement.
• Credit and debit memo requests.
• Order and cash sales.

As per Nandini Padiyar (2015), Sales and Distribution (SD) module is the most essential module
of SAP. It handles every one of the procedures from order to delivery. In the present aggressive
business condition, organizations are progressively being compelled to streamline business
forms. In this present reality where it is never again enough to just have the best item;
organizations are concentrating on center skills and closer associations over the entire store
network. SAP SD execute the business forms utilized in selling , delivering and charging of item
and administrations. It handles the exercises of Sales and Distribution. This module accompanies
the far reaching set of both order and logistics management. A large number of the frameworks
are firmly incorporated with the Distribution Requirement Planning (DRP), the motor of the 'in
the nick of time' deliveries. This combination maps the supply of single site or multi-site
association. This framework can likewise produce recharging orders by utilizing distribution
center prerequisites. Deal and Distribution module of ERP comprises of all ace information,
framework design and exchanges to finish the procedure of Order to Cash.
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DATA ANALYSIS OF SD MODULE OF ERP:

Detail look at the function performed by SD module in Sanofi:

Inquiries and Quotes:
This module is coordinated with the IM programming which a business or sales rep have in its
iPad. It have all the data like what cost to be cited for which medicine and upon how much
request in addition to give the business rep a chance to produce the request for why the
prescription isn't accessible in the market or in his general vicinity

Sales order:
This is the principle undertaking of the SD module. It let you convert the request or requirement
of the client in to a report which contain the data like who is the client. To whom it will be
delivered. At the point when the delivery can happen, etc.
For instance: Sanofi gets the request from Agha Khan. The Sales request will have the following
sort of data:
Option Name Code
Sold to party Agha Khan AGK000211567
Ship to party Agha Distributors AGD025864878
PO number Saleem (Sales Rep) 632554785
Other
Delivery date and time 22-12-2017 12:00pm
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Sales return:
Sales return is additionally a vital module of SD module. The reason is that it informs the
organization that why the request is returned and how much request is returned. Like in Sanofi,
the odds of the request return is low as the requests are made and got each day. Be that as it may,
the primary reasons why request can be returned can be as per the following:
 Poor packaging
 Open celling.
 Syrup spillage or leakage

So the following can be the look of the return:

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It clearly shows the following:

Option Name Code
Sold to party Agha Khan AGK000211567
Ship to party Agha Distributors AGD025864878
PO number Saleem (Sales Rep) 632554785
Other
Delivery date and time 22-12-2017 12:00pm
Reason of return Syrup leakage
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Contracts:
In pharmaceutical organization or in any industry, when you are selling your item through third
party place you make an agreement with them. This let you set the accompanying:
Selling price range Here you set a costs and its extents like: Sanofi has an item called
Flygel. So if Agha khan orders 2000 units for each request it will cost
Rs 10/unit. It orders 4000 units for every request it will cost Rs 8/unit.

Credit days A organization has its very own credit approach however the agreement
with between medicinal store and pharma organization permits to have
an adaptable scope of credit limit. Model Agha khan's credit day limit is
120 days while times medico's credit day limit is 45 days

Credit memo:
Credit memo tells the organization which client has paid the installment and who need to pay and
as far as possible he need to pay. At Sanofi this is an essential issue as a pharma organization
have made deals to many medical stores and specialists and dispensaries and hospitals facilities
so keeping the record of which client needs to pay and the sum to pay is the key here. It likewise
bolts the request which is from a client who needs to pay its dues.
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How SD module is integrated with other departments and make a business process?
The SD module is connected with Supply chain the board, Accounting and fund and sub
associated with stock administration or inventory management and production management. The
following graph demonstrates the mind boggling business procedure of what happens when a
client makes a request and how and which business forms get connected in a pharmaceutical
organization
Benefits received:
Getting the data stream of offers streamline and appropriate over the concerned offices:
The manner in which SD module interfaces SCM, IM, P&P and A/F, it make the data stream
back and forth in the organization simple. At the point when a request comes it consequently
creates the necessary reports to be sent to SCM or to A/F or even to IM or P&P.
Real time perspective of the order:
It permits the sales representatives and SCM individuals the request status in the real time. Like
if the request has been dropped they will become more acquainted with it quickly. Or then again
if the request is refreshed.
• Auto check of the client and stops you if the client is a defaulter:
It consequently check about the client's installment history and if the past installment is expected,
it bolts the request and just records office can open the bolt. This request is than physically gone
into the framework.
• Keep connected with the stock:
It keep the stock of completed products in connected with the sales. Like if there are 1000 units
in completed merchandise however a sales order is generated of of 1500 units, the framework
will consequently inform the sales department , inventory department and production
department their individual occupations. Like for deals the activity will be to tell the client that
request of 1000 units will be accessible in 2 days however for 500 more units you should sit tight
for 3 extra days. As needs be to stock administration that make request to the production
department that the request of 500 additional units have been enrolled so begin making it.
Production will begin making the extra 500 units and update the FG stock.
• Provide consistent information for the estimating of the forthcoming year/quarter:
Consistent linkage with the production planning will make the SOP module to make estimate of
the coming month/quarter/year and will endeavor to make as precise as could be expected under
the circumstances.
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Delivery
E
status
Payment Sales order SO detail B
Customer Sales and Supply chain
Check
distribution management
Customer
Check
Delivery history
Customer
C A
history Check
credit
Review contract Check Customer history Check
History
creditDo we have order ready D
Check credit History History in Finish goods Check
Generate Sales invoice inventory? contract
Check Customer Check Customer
Check history
contract Check
history contract
CheckCustomer
Check credit
Generate History
Sales history
order
Check credit Check Customer history Purchase order
Accounts and Check
Check
Check contract
Customer
credit History
history
History
Finance Check credit History
Check
Check contract
credit History
Check contract
Check contract Check
Check contract We don’t have
Customer
D order ready
Vendor
history
Block order and send
memo for payment of Check credit
previous balance Inventory History
Check
management
Customer Provide
Check contract
history material
Check Customer history
YES NO Check credit
Check credit History Is FG History
available
Check contract ? Check contract
Send order to
Send status to
Supply chain
supply chain A

B Make order

Authorize
Production
Purchase order
and planning
Is RM
available
?
Manufacture
E order
Send inquiry for RM
purchase C
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Question 1 2 3 4 5

What are the KPIs of your sales and distribution

module?
Which different applications your sales and
distribution module is integrated with?
What role does ERP plays in your sales and
distribution strategy?
How ERP help you manage and work according to
your credit policy?
How ERP manages your distribution of your
medicines to distributor?
How ERP help in managing the billing of sales?

Was your decision about implementing ERP in your

Sales and Distribution disappoints you?
How this module help you get align with you value
like: stand out, embracing difference and so on?
How you SD module help you to achieve the vision of
reaching patient’s needs?
Questions asked there:
1 Dissatisfied
2 Somewhat
satisfied
3 Natural
4 Satisfied
5 Very
satisfied

My learning:
The involvement with Sanofi Pakistan was great. The fundamental reason is that they, in spite of
the way that, didn't enabled us to take photos of the module yet disclosed to us the genuine taste
of how a pharmaceutical organization in Pakistan functions and deals with its every day work. It
additionally given me a chance to figure out how the SAP ERP or some other programming help
in organizations enhance their execution. It was a decent experiential realizing there at Sanofi
Pakistan.
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HUMAN RESOURCES MODULE: (Done by: Ausaf Ali)

Literature Review
Human resource management is core business department within organization, and ERP system
helps organization in fulfilling needs of HR department through Human resource information
system (HRIS). HRIS module not only manages employees but it is also used in performance
appraisal to appraise performance of employees and employees are rewarded in form of
compensation based on their performance. Based on different needs of employees, compensation
function of HRIS module includes intrinsic and extrinsic rewards to keep them motivated;
furthermore, HRIS modules supports organization by recruiting and selecting competent
employees. Finally, it may be concluded that HRIS module in ERP system helps organization in
managing work force effectively and helps in maintain competitive edge over the competitors.
(Ali Ejaz, 2015, HRIS: role in HRM practices and organizational performance)

HR module
This module has planning process which contains aims and objectives of the firm. In order to
attain set objectives by firm, employees enter their individual objectives in system like how
many doctors they should meet, which area to target, and number of people required to attain
set objectives by firm.
In recruiting and selection, if employee is required in any department then head of department
would define job description of employees and reason for hiring an employee as heavy
investment is made on hired employee in form of training. This module also manages turnover
ratio like number of employees retired or left the job. Whenever employees leave their job, HR
department updates ERP system regarding resignation of employees and it shows red indicator
that numbers of employees are required in city/division.

Compensation system
Employees are compensated through electronic compensation system of HR module and this
system helps in determining salary of employees based on following factors:
 Base salary
 Allowances and employee benefits like healthcare benefits
 Expenses allotted to employees like fuel or mobile bills expense
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Performance appraisal
HR module appraises employees by comparing their performance against set standards by the
company. It can be used in predicting retention ratio of employees. It records all the data
regarding employee’s performance and employees are promoted on basis of such stored
information.
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Training and development program

In training and development program of HR module, employees fill information in ERP system
regarding their desires, and where they want to be in future within organization. Now,
management decides future plans of employees based on their information in Performance
appraisal and their aspirations. Manager then decide which department would be suitable for
them and which position would be best for them within department. Finally, training and
development program develops action plan to help employees achieving their goals or objectives
which they mentioned in first step of T&D program.

Attendance management system

This process is based on card system where every employee enters their card number in
attendance management system to mark their attendance and that data is locked and cannot be
changed. Also, there is leave option which shows remaining leaves of employee within a year
and leaves that he has availed within a year. Sanofi uses electronic attendance to ensure
attendance of employees and to have solid evidence pertaining to annual leaves of employees.

4
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Questions
Q: 1. How HR module helps your organization in recruitment and selection?
Q: 2. what factors are assessed with help of ERP to determine employee’s salary?
Q: 3. Does HR module helps in performance appraisal and training of your employees?
Q: 4. after implementing ERP, what is procedure of attendance of your organization?
Q: 5. Does HR module monitors travelling of your employees as your company is
pharmaceutical company, employees need to travel to different places to make sales call?

Data Analysis
Recruitment: First of all, Departmental head informs company through erp system that there is
vacancy to be filled. Then departmental head enters job description in ERP system which defines
what responsibilities and duties hired employee need to perform.
Compensation: these factors HR module considers for estimating salary package for
employees:
 Base salary
 Allowances and employee benefits like healthcare benefits
 Expenses allotted to employees
Performance appraisal: HR module controls all information of employee regarding their
performance and employees are evaluated on basis of performance that is defined by HR
module.
Training: on basis of performance defined by HR module for employees, now management
decides who needs training and HR module helps in creating training program.
Attendance: employees have to enter their card number in ERP system to ensure their
attendance. It is based on card system.
Travelling: Our travelling system is based on EBTA and ERF which helps in recording
travelling expenses and getting approval from top management for travelling.
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Warehouse Management
System: (Done by:
Shamama Irfan)
Literature Review:
As the supply chains get more minds
boggling, the assortment of markers
and apparatuses to gauge warehouse
execution has likewise expanded.
Besides, the measurements that are
utilized for execution assessment are
surveyed in various behaviors and
thus there isn't clear definition for a
portion of these measurements. To
address these issues, this writing survey centers around operational warehouse execution
estimation, for which the warehouse directors need to do intermittent investigation. Utilizing the
substance examination strategy, execution pointers are obtained from chosen papers and are
characterized by time, cost, quality and efficiency measurements. (Staudt, Alpan, Mascolo &
Rodriguez, 2015)
Warehouse management systems have improved the constant process of inventory management.
The constant innovation in technology has made it easy for warehouse data management.
Warehouse management is a key component of the end-to-end logistics process, yet is sometimes
overlooked when organizations invest in modernizing their supply chains. Failing to update
warehouse management processes can have a significant impact on supply chain efficiency,
however. Learn how the extended warehouse management functionality in SAP S/4HANA helps
you maximize the efficiency of your warehouse and better integrate warehouse management into
the end-to-end logistics process.

Over the past few years, organization all over the world have realized the need for an ERP
System as it aims to streamline all Business Function and Business processes that reside within
the functional areas of the organization . But organization need to be careful while implementing
an ERP system was that they must ensure their organization Structure, Business Function and
culture is in line with the ERP system as ERP System by its name implies a certain way of doing
a business consequently, there must a synergy between the organization and ERP System. This
report talks about ERP Module Implementation in Sanofi Genzyme in order to streamline its
Business Processes of Accounting and Finance, Human Resource Sales, and distribution and
Supply chain department. In addition, the report also incorporates details about the benefits that
Sanofi Genzyme has got due to the implementation of ERP. For instance, financial reports were
automatically generated through Accounting and Finance module for internal and external
analysis and cost-cutting mechanism. Similarly, Human Resource Managers were able to
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manage their workforce in a more efficient manner by streamlining the Payroll and Performance
Management process. Also, Sales and Supply chain activities were smoothened due to the
implementation of ERP System in Sanofi Genzyme. On a whole, ERP module Implementation
for Sanofi is beneficial for the entire organization in the long run and it's 4 functional areas
which include Accounting and Finance, Human Resource, Marketing and Sales and Supply chain
department as it increases the overall effectiveness and efficiency of Sanofi Genzyme.
Analysis of Warehouse module in SAP:
The flow management system is very important for Sanofi Warehouse to work efficiently.
Orders are picked, packed and dispatched efficiently.
Problems in sanofi warehouse are critically managed in order to make the flow management
process in the warehouse work efficiently. The main problem occured delayed time in delivery to
material production., error in flow management process and space utilization.
We can take an example that if Sanofi’s Warehouse idle capacity is only 70 items and the
warehouse department orders 120 of item as there was previously no electronic system capturing
the idle capacity of warehouse. Consequently, 50 of the items ordered will be wasted due to
insufficient space in warehouse. Moreover, Raw material order should be aligned with the
demand of customer and this process became streamlined due to the ERP System which contains
information of customer that is used to derive demand and such information can be used to order
raw material as per demand of the customers. Therefore, Such a System helps not only in
managing Capacity of Warehouse but also helps the company in managing the demand of the
customers for the products of the company. Furthermore, Sanofi was in need to develop an
extensive planning process for producing the products as per market requirement and also
ordering quantities as per the demand of the customer in the market. Also, Sanofi wanted to
identify the potential markets in which their products can be sold so that they can fill the gap left
by the other companies in the Pharmaceutical industry. Considering the fact that if there is an
epidemic of diarrhea in such a Sanofi will be producing more FLAGYL But if Malaria has
spread in the environment, then Nivaquine-P will be produced. This entire process will either
make or break their strategy. Therefore, ERP System at Sanofi is the best solution for managing
their market demand and production plan of their Products. Also, ERP System helps Sanofi in
solving their two main problems. One of the main problems that Sanofi was facing was that it
was unable to meet demand of their consumers either due to insufficient raw material or wrong
machinery used resulting in a flawed product. Ultimately, the competitors of Sanofi could easily
take advantage of this opportunity. On the other hand, Sanofi at times did not consider the
market situation and demand and overproduced products which ultimately reduced their profits.
Consequently, due to ERP Implementation in Sanofi, they could easily manage the demand and
supply mechanism and were able to satisfy the needs of their customers. Moreover, ERP System
have integrated all the four functional area of operation through a centralized database which has
help Sanofi in streamlining their Business Functions and Processes. Currently in Karachi head
office of Sanofi they have supply chain, finance and accounting departments. Lastly
Collaboration and Coordination is very important while making a forecast of the brand they are
about to produce. Whatever objective sales and marketing departments have, these objectives are
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changed into numerical through which backward working is done in order to see how many units
of raw material will be required to produce the product, how many units of the product will be
needed in the market and inspect the shelf life of a product. And these factors help in developing
a comprehensive plan in the production and planning process of Sanofi. Sanofi want their
inventory to be more produced within 15 days. The BOM to produce the medicine should have a
lapse time of 15 days. So that the next batch can be manufactured in accordance with these raw
materials BOM examples of a Particular medicine: Lactose Talc Magnesium stearate
Sucrose Gelatin Shellac Glaze As far as Sanofi different production lines are concerned,
the products are prepared through one Production line and once one product is produced then the
same Production line will be used for producing another Product.

Learning and Questions asked:

Benefits of Lean Warehouse Management System:

 Effective tracking and monitoring of inventory

 Better utilization of floor space

 More accuracy of inventory

 Increased order quality and quantity

 Improved Data integrity and controls

Limitations:
One of the limitations, of this research was that we couldn’t get a personal tour for the group of
the entire floor management system that Sanofi has in place at their warehouse. We were just
given data and instructions as to how they conduct the various processes in the warehouse.
Time constraint of the interviewee is another limitation of this research. Due to his JOB duties,
he wasn’t able to give us much time as possible.
Also due to a lot of restrictions of confidentiatlity of warehouse reports, a lot of valuble data hat
could’ve been useful to us was not available.
Questions:
How long it has been since you’ve implemented SAP in your company?
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How has it benefitted you in the long run?

What is the impact on efficiency of the company and its departments?
How important is it that you have a lean WMS?

Module: Accounting and Finance in Sanofi Pakistan (Done by:

Vimal Kumar)
 Literature Review:
Kanellou.A, 2012, provided details about the accounting and finance benefits which have been
covered with the implementation of current modern enterprise resource planning (ERP) software
above the tools of information which previously were used. The foremost origin of the article is
to articulate the foremost benefits and drawbacks of the accounting and Finance module of ERP
systems. Secondly, the aim of the study is to understand however finance and IT professionals
assess the benefits of monetary Modules in a company. The analysis concerned 176 Finance
professionals and ninety-six IT professionals from 193 firms in Balkan country. The results that
were obtained from the study pictured no vital distinction in benefits of monetary module
execution for Finance and IT professionals. More, it was noticed in conclusion that organizations
do work efficiently and effectively with the help of this accounting and finance module. Other
things are that costs also reduced with the use of this accounting and finance module.

There are some functions of Accounting and finance which have been covered below.

 General Ledger
The company manages its external accounts with the help of general ledger. Sanofi always looks
and makes sure that all the accounts of vendors are passing by general ledger so that it can
provide accurate data of its module.
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When any kind of sales made then firstly it comes in general ledger then it goes to some
other operations. With the help of this activity, this authorize accountant to have all the
initials transactions made at that time which allows him to notify. On the other hand, if there
is any type of other expenses like maintenance bill, electricity bill, and other expenses occurs
then it will directly show in general ledger.

 Fixed Assets
These are the assets which a company cannot convert easily in to cash, we called them fixed
assets. Fixed assets which Sanofi have in current are following:
 Machinery
 Electronic things
 Buildings
 Plant and Equipment
 Transport like Trucks
Cost Center is a basic concept in this regard. With the help of cost center a company can value its
fixed assets like there are fixed assets: Machinery, Electronic things, buildings etc. So, with these
fixed assets there are other costs also related which are repairing, depreciation and other
expenses. With the help of cost center Sanofi can find out the current market price of its fixed
assets.
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 Accruals
A company’s liability is known as accruals. It is kind of things that a company has used the
services but have not paid yet. It is mostly depending on the commission of its company’s sales
representors. The commission of sales rep records by the sales and distribution. Every month,
these records are come in accounting and financing department and then accountant made and
prepare the cash which will directly add in to sales representor’s wage account. Occasionally,
Sanofi sometimes do not give the commission to its sales representors because of the downfall in
their recent performance. In this regard, accruals do increase, and that amount will be given
when company’s and sales representors performance go up to mark.

 Interest Payments
Mostly Sanofi is an equity-based company and it does not have to give any interest in this regard.
But sometimes they do take loans from commercial loans to finance their costs. So, then they do
pay interest but mostly they do not because it is anequity-based company. They also use their
internal funds to finance their investment which basically come from their equity.

 Inventory Costing
This is concept of measuring the gain and loss after buying the inventory. Sanofi buys their daily
chemicals regularly. Some of the chemicals are: Influenza vaccine, flu vaccine, lactose etc. So, if
their costs vary in some context, material management module will let Sanofi know that the
increase or decrease in inventory costs and with the help of accounting and finance module
Sanofi can manages the profit analysis of inventory.

 Account Receivables
This concept is that the company has provided the services to its customer and will receive
amount in future. Their major customers are Agha Khan, South City, Liaqat National and other
some hospitals which buy their medicines from Sanofi on credit. So, with the help of this module
Sanofi can find out the dates and time that when they will receive their cash from its customers.
With the help of this module Sanofi can also stop giving services to those customers whom their
receivables increase their limit. So, these are also the benefits of this module which Sanofi is
taking.

 Account Payable
It is account of liability which provides company a statement of how much balance of a customer
is must be paid. Sanofi manages its credit period in 3-4 months credit period. Whenever
company buys the inventory like chemicals, Sanofi also made some transactions on credit. So, in
this 3-4 credit month, Sanofi must pay the remaining amount to its vendor in this time. The raw
material which Sanofi buys from Europe, so they do not pay all the amount on same time so the
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amount which must be pay increases its account payable account. With the help of this module,
Sanofi will come to know when and what amount of money is due. These were the functions of
account payables of Sanofi.

 Financial Statements
Sanofi prepare its financial statements with the help of SAP software. Basically, financial
statements include income statement and balance sheet. SAP software provides the all the
accounts and data gather from all the departments and modules. In this accounting and finance
module, sanofi’s current financial conditions will come to know and their standings with the
financial point of view. Commercial banks also give the loans to companies based on their
financial statements. So, Sanofi make income statement and balance sheet in every year end.

 Chart of Account
List of all the accounts, displaying all the general ledgers, company codes in accounting system
is known as chart of account. It includes the company’s codes, names, account numbers etc.
With the help of chart of account, company comes to know how company controls the
information. Sanofi manages chart of accounts in to some categories and provides each an
account number. With the help of this, Sanofi manages its accounts efficiently. SAP also have
the chart of account, in which all the general ledgers of all the accounts highlight.
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 Display Invoice
Sanofi also generates invoices for their customers. Invoice includes amount, tax amount, posting
dates, payment terms and other details.

This screenshot is a example of a good invoice which companies create by their SAP software.

 Purchase Order
It is record which a purchaser issues to dealer showing the costs, data of products, amounts etc.
Sanofi’s purchase order includes several factors which are
 Vendor Name
 Purchase organization and group
 Total Cost
 Address
 Quantity
 Price
 Discounts
 Delivery Date
 Location
 Request for Quotation
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 Transport Charges

We can see those factors in this purchase order.

 Good Receipts for Purchase Order

With the help of this module Sanofi can generate good receipts for its purchase order and it
also make sure that the amount has reached to vendor on time. The factors which includes in
a good receipt are:
 Details
 Quantity
 Information about document
 Valuation
 Item numbers
 Comments
 Type
 Price

 Recommendations

 Credit period must be improved for its debtors.

 Sanofi must reduce its paper work and shifts towards more software use so that it can
lead to effectiveness and effectiveness
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 The lack of profitability analysis was there in Sanofi, so it must be improved in order to
gain more profits
 Sanofis’s marginal revenues has also decreased so Sanofi must do use of SAP software
efficiently in order to gain more revenues and profits
 Because of SAP software, ROI and return on high cost inventory will also be increased
 With the use of SAP software, profitability of Sanofi will also be increased

Questions
1. How you manage your accounts?
2. How many customers take products on credit?
3. In how many days you receive your account receivables?
4. How generating purchase order is beneficial?
5. How much you use SAP for your accounting and finance module?

Supply Chain is outline of the future, Forrester (1958): (Done by:

Priya Kumari)
He anticipated that after a period of research and development including essential sensible
strategy, "there will come general regard of the advantage delighted in by the remarkable
organization who have been the first to propel their comprehension of the interrelationships
between isolated organization capacities and between the organization and its business sectors,
its industry, and its national economy." It creates the impression that key the executives issues
and represented the elements of elements connected with the experience alluded to in current
business writing as Supply Chain Management (SCM). The term store network the executives
has ascended to qualification in the course of recent years (Cooper 1997). For instance, at the
1995 Annual Conference of the Council of Logistics Management, 13.5% of the parallel session
titles contained the words "store network." At the 1997 meeting, only two years after the fact, the
number of sessions containing the term rose to 22.4%. Besides, the term is typically used to
portray authoritative errands in partnerships (La Londe 1997). SCM has turned out to be such a
"hot point" that it is hard to get a production on created, dispersion, promoting, client the board,
or delivering without seeing an article about SCM or SCM-related points (Ross 1998).

Supply chain module

Sanofi utilizes SAP solidarity as its most recent Enterprise Resource Planning programming
which helps the endeavor in different business exercises. Most imperative business work Supply
Chain and coordinations is being taken care of by the equivalent said programming which helps
the organization in overseeing supply and coordinations. Sanofi's Supply chain and Logistics
module comprises of generation arranging, Stock Management, Material necessity Planning,
Demand Management, Sales anticipating, Detailed Scheduling, Purchasing and
Delivery/Shipment. ERP frameworks are exceptionally vital for Sanofi as it needs to store all the
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total information and utilize it for its business capacities which can additionally help Sanofi in
dealing with its business. The system information is even critical as the Government of Pakistan
appoints a quantity for items for MNC.
Moreover the information gathered even incorporates the interest and deals for the coveted items.
Sanofi further uses the information to estimate its deals and create in like manner, besides the
organization has a framework which encourages them dealing with the merchants everywhere
throughout the country. For model an item X is high sought after in Punjab then Sindh then the
Software will design the circulation of the item X as needs be to the interest work
The product of the organization oversees deals rep even all the applicable information to the
individual is related to the individual information and even the commission of the reps are
specifically connected to the deals the individual has cooked.
Sanofi about obliges around 24000 specialists, so the SAP programming processed in the
organization ensures that the item required by specialists are promptly accessible in the adjacent
drug stores what's more, their healing facilities. Thus the SAP solidarity of Sanofi deals with the
dissemination of the items in the best strategy. Besides the SAP is even equipped for dealing
with the credit furthest reaches of every client individually for instance if any client surpasses as
far as possible or defaults making installments then the product limits the client for making any
further requests, in request to make further buys the clients are required to make installments.
This can be supersede by few chosen authorities inside the associations.
The issue of an incorporated framework is that on the off chance that the framework crashes, the
whole framework inside the association crashes incapacitating every one of the representatives
from work, this stops the business activities. This occurred with Sanofi once, the framework
breakdown was for the entire day which stopped the business tasks and an assigned group from
France visited to make the framework work.
Besides the Supply chain and coordinations module of Sanofi comprises of stock administration
as well which is extremely helpful as it deals with every one of the provisions and stock of the
organization.
The raw materials are noted down as it enters the distribution center which are utilized by the
creation division. The completed great stock is recorded as it achieves the distribution center
which is utilized by the deals and circulation division. The ERP framework even tells us the
amount of stock is left and when to request and it even tells the worry divisions of low
dimensions of stock. The circulation and generation is being arranged by alluding to the
accessible stock. Moreover the conveyances of the merchandise are arranged as needs be. The
record of driver, vehicle utilized and stock to be conveyed is appropriately followed to through
the product.
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Conclusion:

Sanofi depends greatly on SAP HANA for their integral operations to be done rightfully within
the organization. SAP HANA is used for every operation and department within the company
and therefore provides the utmost efficiency. Every department uses SAP for its basic and
complex functions and it has reduced data redundancy and repetition by making it smart and
effective by storing data accordingly. These days, the reality is that larger businesses have
multiple facets of operation, all of which must communicate with each other in order to keep
things moving in the right direction. Up until the introduction of Systems, Applications, and
Products (SAP) systems in data processing, there was no real efficient and reliable means of
enabling communication and data flow between the many facets of a business. Today, however,
SAP systems are used all over the world–in small businesses and Fortune 500 companies
alike. At the end of the day, there’s no denying that SAP software allows businesses of all sizes
to truly realize their full potential.

‫استنتاج‬

‫ تعتمد‬Sanofi ‫ على كبير بشكل‬SAP HANA ‫المنظمة داخل قانوني بشكل تتم التي المتكاملة لعملياتها‬. ‫ تستخدم‬SAP
HANA ‫ الشركة داخل وقسم عملية لكل‬، ‫قصوى كفاءة توفر وبالتالي‬. ‫ قسم كل يستخدم‬SAP ‫ والمعقدة األساسية لوظائفه‬، ‫كما‬
‫لذلك وفقًا البيانات تخزين خالل من وفعالة ذكية بجعلها وتكرارها البيانات تكرار من يقلل أنه‬. ‫ األيام هذه في‬، ‫أن هي الحقيقة‬
‫ العمليات من متعددة جوانب لها الكبيرة الشركات‬، ‫األمور سير على الحفاظ أجل من البعض بعضها مع تتواصل أن يجب والتي‬
‫الصحيح االتجاه في‬. ‫ البيانات معالجة في والمنتجات والتطبيقات األنظمة أنظمة ظهور حتى‬، ‫وموثوق فعالة وسائل هناك تكن لم‬
‫لألعمال المتعددة الجوانب بين البيانات وتدفق االتصاالت لتمكين بها‬. ‫ اليوم‬، ‫ ذلك ومع‬، ‫ أنظمة استخدام يتم‬SAP ‫جميع في‬
‫ العالم أنحاء‬- ‫ وشركات الصغيرة الشركات في‬Fortune 500 ‫سواء حد على‬. ‫ اليوم نهاية في‬، ‫ برنامج أن إنكار يمكن ال‬SAP
‫حقًا الكاملة إمكاناتها تحقيق األحجام جميع من للشركات يتيح‬.

References:
1. https://www.sanofi.com.pk/
2. https://www.slideshare.net/ArsalanHumayun1/erp-implementation-at-a-pharma-
company-in-pakistan
3. http://www.annualreports.com/Company/sanofi
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