SAP SE announced that in the midst of the COVID-19 pandemic, Terumo Americas Holding (TAH), a subsidiary of Japan-based medical device manufacturer Terumo Corp., successfully implemented SAP S/4HANA® and several other solutions across multiple sites. The company embarked on this project as part of a digital transformation journey, uniting operations, systems and people to help achieve its mission of contributing to society through healthcare.
“SAP S/4HANA is the foundation of our company’s digital transformation and part of our overall strategy and commitment to better serve our customers across the globe,” said Hiroshi Nagumo, president and CEO of TAH. “Integrating vital business processes on one common platform means greater efficiencies, allowing us to continue bringing physicians and their patients the highest quality products and services as we grow.”
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Digital Transformation Powers Business Growth
To directly support the company’s future growth, TAH implemented SAP® offerings including SAP S/4HANA, the SAP Master Data Governance application, SAP Ariba® solutions, the SAP Integrated Business Planning for Supply Chain solution, the SAP Extended Warehouse Management application, SAP SuccessFactors® solutions and SAP Concur® solutions running on SAP HANA® Enterprise Cloud. This U.S. implementation of SAP software is part of Terumo’s global IT initiative, successfully launched in Japan in 2018.
“With the implementation of SAP S/4HANA, we’re providing the best practices that our different business units require with the right balance of standardization and configurability — and the results have been immediate,” said Kalyan Balsubramanian, vice president and chief information officer, TAH. “For example, by sharing updated demand information from customers in America, Europe and Canada with our manufacturing facilities in the United States and Japan, we can now better manage our data across our supply chain.”
Project Goals Achieved: On Time, Under Budget, In Compliance
Despite going live at the height of the COVID-19 pandemic, TAH met the challenges with a combination of remote and socially distanced in-person activities, including the training of over 1,500 employees. Additionally, as a life sciences company, TAH’s implementation was required to meet the industry’s stringent regulatory compliance mandates.
“The strategic planning for this transformation was well underway prior to the global pandemic, but we persevered — with the help and commitment of our employees — to support future growth,” said Sung Yang, vice president, SAP Program Executive at TAH. “We met our ambitious goals and are now live with a fully validated implementation. Our processes, software and data are compliant with government regulations and controls.”
TAH’s experience reflected the tremendous advantage of becoming an SAP-enabled intelligent enterprise, said Greg Petraetis, SAP general manager and senior vice president for the SAP Midmarket and Ecosystem in North America.
“Companies in every industry need to stay ahead of fast-changing markets and customer demands,” he said. “Being able to integrate actionable data across all of business processes — from manufacturing, supply chain and inventory through procurement, finance, human resources and more — is how modern business ultimately delivers the right products at the right time to the right customers for competitive advantage.”
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Automation Speeds Up Orders with End-to-End Visibility
TAH is now set up for a more efficient, scalable order-to-delivery process. The company’s healthcare customers have improved visibility into their orders, from initial acknowledgement through tracking notifications and delivery. Using SAP S/4HANA, TAH can virtually manage its in-hospital product inventories more effectively, ensuring customers receive devices when needed.
Transformational Partnership for Strong Future
Now that SAP solutions touch every part of operations across TAH, the company is looking to the next phase of transformation, eventually expanding to supporting business operations worldwide.
“SAP is a great partner for our digital journey, effectively collaborating with our teams and other important partners to bring our business into a single source of truth,” said Rick Larrieu, vice president of Global IT Applications and Infrastructure at TAH. “With these investments, we can better serve our customers and their patients, while increasing our operational efficiency.”
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