Merck Chemicals uses Catalog Management and Procure-to-Pay Excellence

Industry: Pharmaceutical and Chemical

About Merck

Merck ranks among the world’s leading Pharmaceutical, Chemical and Life Science companies. They operate their business in four divisions: Bio-pharmaceuticals, Consumer Health (over- the- counter pharmaceuticals), Performance Materials (high-tech chemicals) and Life Science tools.

Business Challenges:

  • Uploading and maintaining large no. of catalog items in customer specific catalogs.
  • Supporting round trip of Punch-out using Customers’ SAP system.
  • Delays in procurement cycle transactions with different customers.
  • Automating Order to Cash transactions like receiving PO and sending PO Acknowledgement and raining invoices.
  • Manual paper based transactions are error prone and time consuming.
  • Risk of procurement non-compliance.
  • No integration to ERP, hence to be keyed in manually in ERP.
  • Limited control and visibility of P2P process.

Business Benefits:

This large pharmaceutical company with an enormous number of products uses MDO to maintain and upload its large number of catalog items in various customer-specific catalogs with specific pricing and details. The organization maintains more than 100,000 Catalog items across its various customers. It includes SAP Punch-out making the shopping experience much easier for its customers. MDO also helps in streamlining their entire Order Management Cycle including receiving Purchase Order, sending Purchase Order Acknowledgement and raising Invoices. This helps the organization shorten their order to cash cycle, helping them to transact with their customers through MDO which enables SAP integration at the back end in real time.

  • Complete Automation and Workflow of Procurement Process.
  • Easy upload and maintenance of customer-specific catalogs leading to better customer buying experience.
  • Streamlined Procurement cycle like receiving PO, sending PO Acknowledgement and raising invoices leading to removal of delays and missing deadlines.
  • Increased transparency and accountability of the system Integration with SAP provides an integrated and consolidated system to manage the entire cycle and finally updating in the ERP.