IBS in rude health with $12.5M deal
IBS in rude health with $12.5M deal
Business software provider International Business Systems (IBS) has secured a deal worth $12.5 million to provide pharmaceutical product manufacturer and wholesaler Sigma with a new ERP system for its wholesale and retail operations.
Sigma will implement IBS' specialised software solution for pharmaceutical distribution, called IBS Pharma. It covers order management, customer service, distribution, warehouse management, logistics, supply chain management, financial control and management information
The agreement between Sigma and IBS covers software, implementation, services and hardware and the new solution will replace Sigma's current in-house legacy system, GBS.
Sigma, with annual sales of approximately $2 billion and approximately 1,600 Australian employees, owns the Herron brand as well as the Amcal and Guardian banners.
"Sigma has undertaken a comprehensive selection process, which resulted in IBS being selected as the preferred vendor. IBS' turn key solution minimises the project risk for us, and I look forward to the significant efficiency benefits and improved functionality that the new system will provide," said Elmo de Alwis, Managing Director of Sigma. "Our ability to better service our customers' requirements in a more complex environmentwill be enhanced by the successful implementation of the ASW system."
Sigma had been running six separate state-based systems. By implementing IBS Pharma, Sigma aims to achieve integration across its multiple sites. Sigma will also create a national database and reduce its business system complexity.
The new IBS system will also allow all branches to adopt standardised processes and Sigma will introduce an RF (radio frequency) tracking system in its warehouses that is tightly integrated with the IBS enterprise system.
The new IBS system will have 450 users and the work associated with a national rollout has just begun. The rollout will proceed state by state over the next two years.
"I am confident that both our companies will benefit greatly from our ongoing relationship," said Staffan Wensing, Managing Director of IBS Australia. "The implementation of IBS Pharma, with its industry-specific functionality, is expected to facilitate further improvements in Sigma's supply chain processes and deliver significantbusiness value."
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