Chinese pharmaceutical company builds management platform based on SAP HANA

Yunnan Hongxiang Yixintang Pharmaceutical Co. Ltd. (Yixintang) has begun to deploy an intelligent management solution powered by the SAP HANA platform with the aim of making Yixintang the industry benchmark for the retail drug industry.

Yixintang’s business expansion in recent years has resulted in an increasing number of stores. The rapid development of the group has placed great pressure on its information system. Due to numerous information silos, the company is unable to realize effective financial accounting and cross-store drug allocation due to the lack of a unified platform. A large amount of repetitive manual computing takes up too many resources and prevents the company from responding to procurement demands in a timely manner.

“Whether it is the regular chain marketing network or investments in building the supporting informatization system in the long run, Yixintang is always leading industry trends and is steadfast in development with innovation,” said Hongxian Ruan, chairman of Yunnan Hongxiang Yixintang Pharmaceutical Co. Ltd. “SAP and Yixintang have established a win-win cooperative partnership with mutual trust and benefit. We are delighted to witness the fruitful outcome in the initial project phrase, and expect the successful implementation of the system to help Yixintang build the leading intelligent management platform in the retail drug industry.”

In July 2013, Yixintang’s management and SAP Labs China decided to build Yixintang’s management platform based on SAP HANA. The SAP team owns the unique methodology, focusing on the R&D and implementation of innovative applications on the SAP HANA platform in collaboration with customers. “Design thinking” is a key node of this methodology and also a breakthrough of Yixintang’s informatization project. SAP organized the IT team with experts across multiple industries. The status quo of Yixintang’s product category, promotions and warehouse management were analyzed, proposals were put forward and feasibility discussed before they agreed upon an optimal approach.

Following three months of post analysis and system development, the teams from SAP and Yixintang decided to implement three innovative applications:

· Commission solution for stores: With the high-performance and real-time computing capacities of SAP HANA, Yixintang users are now able to compute the sales commission of each store’s employees in a very short time. Not only does the solution significantly improve computational efficiency, data accuracy and traceability, it also indirectly boosts the sales enthusiasm of front-line employees.

· Drug allocation solution across stores: Optimized product allocation and adjustment helps reduce losses caused by stockout or high inventory and helps maximize the profits of the group.

· Product relevance analysis and sales prediction modules: The modules enable Yixintang to get accurate insight into the relevance features of different drugs and facilitates associated sales. In the relevance analysis module, SAP designed a configurable relevance model by introducing two dimensions, “traditional Chinese medicine” and “non-traditional Chinese medicine,” and imported the sales simulation data model for relevant products.