Digital Innovation Strategy
In 2014, Aurobindo Pharma acquired business units of Actavis Plc in 7 Western European countries. An Irish multinational drug company, Actavis, has business spread across 100+ countries across the globe. All the newly-acquired business units and Aurobindo’s own units in UK and Malta were using different enterprise resource planning (ERP) systems. As a result, a total of 7 instances of ERP solutions from various vendors had been acquired by the company.
Aurobindo Pharma faced much difficulty in maintaining these discrete ERP software and business was unable to have clear visibility of the real-time operations across its units in Europe. The enormous amount of work with respect to reconciliation and coordination among the units was burdening the accounts and finance departments of the company. The cost of maintenance of these ERP systems were very high as for each country there was a separate environment /instance.
The company thus decided to have one global environment/instance of ERP for all its units in India and Europe. The single instance of ERP solution has multi-lingual, multi time zone and multi country statutory compliance features. The consolidation of multiple ERPs instances in a single Global Instance and integration of the company’s ERP applications with other applications and tools has helped us to save substantial support cost (approx. USD 1 million) for the company. Single ERP instance for Europe and India resulted not only in cost saving and process improvement but also helped to improve period closing and consolidation in a faster and easier way, better insight of Inventory planning, optimization of operational cost and improved production planning and supply chain planning.