Following the acquisition of one of Japan’s leading pharmaceutical manufacturing facilities, Adragos Pharma launched a large-scale SAP S/4HANA deployment to support digital transformation, operational efficiency, and scalable CDMO manufacturing operations. A critical component of the post-merger integration strategy was aligning pharmaceutical manufacturing systems, ERP processes, and operational workflows across the organization.The SAP project serves as a testament to our expertise in managing complex transitions, demonstrating not only our operational capabilities but also reinforcing our value to future partners and industry leaders. Our approach ensured continuity and set a strong foundation for long-term success.
Now, let’s dive into the key factors that contributed to the success of our SAP deployment in Kawagoe.
According to the SAP Community, SAP projects frequently take twice as long and cost double the initial budget. However, we managed to defy these odds. Our transition from R3 to S/4HANA was completed on time and within budget—a significant achievement in the SAP landscape.
What were the success factors?
- Change Management: Ensuring that all 150 team members were fully aware of the importance of this project and the improvements it would bring to their daily operations was essential. Effective change management was essential to ensure smooth ERP adoption across pharmaceutical manufacturing teams and day-to-day CDMO operations.
- Strategic Staffing: Relying on employees to manage an SAP integration or migration in addition to their regular duties often leads to challenges. To avoid this, we implemented a back-filling strategy, allowing our team members to concentrate exclusively on the project. This approach ensured operational continuity while maintaining pharmaceutical production efficiency throughout the SAP implementation process.
- Robust Governance: Establishing clear roles and responsibilities, coupled with swift decision-making, was a cornerstone of our success. Each team member knew who the power users and global process owners were, which facilitated efficient communication and prevented delays. The presence of a steering committee, including our Global CFO, Global CTO, and Site Head, ensured timely decisions and transparent communication throughout the project. Strong governance structures are especially important in regulated pharmaceutical manufacturing environments where compliance, traceability, and process transparency are critical.
- Collaboration with Tenthpin: The partnership with Tenthpin was instrumental in our success. Their extensive experience in SAP implementation, combined with their CDMO process model, provided a solid foundation for developing our Adragos SAP standard model. Their expertise in pharmaceutical ERP implementation and CDMO process optimization played a major role in supporting our digitalization strategy.
What´s next?
This SAP implementation is a major project within our group, underscoring its significance to our operations and future growth. The new system is set to streamline our processes, enhance efficiency, and boost our capacity to scale operations. It aligns perfectly with our core values of Entrepreneurship and Energy, driving innovation and excellence across our organization.
As our Global Head of Digitalization & IT, Bastian Baur said “Without the effort of everyone in our internal and external team in the project we couldn’t have done it. The willingness and openness to change and seeing the overall benefits of the new system was key to a successful launch.”
