Supplier Relationship

Management
SAP SRM Implementation By
Eurofarma
 About Eurofarma
• Fourth-largest generic drug manufacturer in Brazil.
• Brazil’s biggest sales force – almost 2,000
professionals who serve the needs of more than
480,000 doctors.
• Company provides many name brand medicines
for human and animal use.
• Eurofarma is 100% Brazilian owned, unlike the
many companies in the country that have foreign
ownership.
 Need for SRM by Eurofarma
• Core software from SAP was employed but rapid
growth highlighted the need to fortify the area of
purchasing.
• Spreadsheets and manual processes extensively
used, leaving too little time for negotiating better
deals with vendors.
• Better visibility throughout the procurement process.
• Improve collaboration with vendors.
• Increase control and management of spending.
 Why SAP Was Selected
• Flexibility and scalability to keep up with
transactional demand
• Tight integration with SAP® software that
runs the company
• Ability to manage all types of purchasing
and enforce the specific rules of each
• Simplified software and master data
maintenance
• Familiarity with implementing SAP
software
 Implementation

• Created synergistic team of implementation

experts representing all required
specialties
• Planned for rapid expansion of user base
from 350 to 450
• Used SAP Solution Manager application
management solution for project planning,
execution, and test process documentation
• Implemented phased solution to allow for
gradual migration
 Financial and Strategic Benefits

• Improved ability to control and manage

spending
• Introduced automation throughout the
purchasing cycle
• Reduced operational costs by using catalog
functionality to increase agility and
autonomy
• Increased time available for negotiation
• Improved ability to collaborate with
suppliers
 Operational Benefi ts
Key Performance Indicator Impact

Consumable goods inventory -40%

Direct materials purchased -50%

for production

Purchasing cycle time -30%

Material acquisition cost savings +8%

due to catalogs