Mallinckrodt Pharmaceuticals Supports Global Growth with Single Enterprise Resource Planning System Across Three Time Zones
 
 

Mallinckrodt Pharmaceuticals Supports Global Growth with Single Enterprise Resource Planning System Across Three Time Zones

Mallinckrodt Pharmaceuticals is a global pharmaceutical business that develops, manufactures, markets, and distributes specialty pharmaceutical products and medical imaging agents. The company’s specialty pharmaceuticals segment includes branded and generic drugs and active pharmaceutical ingredients. Its global, medical-imaging segment includes contrast media and nuclear-imaging agents.

 
 

 
 

Challenges

A word from Mallinckrodt Pharmaceuticals

  • “Pharmaceutical companies need flexible and cost-effective enterprise resource planning systems designed to meet industry requirements, support unique business models, and comply with international regulations. Oracle’s JD Edwards EnterpriseOne 9.1 enabled us to deliver on our global strategy by improving business processes and enhancing efficiency.” – Rebecca Dennison, Director, Business Process Controls Organization, Mallinckrodt Pharmaceuticals

  • Replace a legacy, error-prone enterprise resource planning (ERP) system which was limited by a lack of expert IT consultants and support
  • Adopt an out-of-the-box ERP system that is easy to use, supports the company’s global strategies, and meets stringent life-sciences industry requirements
  • Enable sales teams in other countries to adopt the same ERP system as used by head offices, rather than needing to customize the system to meet local language requirements
  • Enable the company to rapidly integrate acquired companies to jumpstart the return on investment

Solutions

  • Worked with Oracle partner KPIT—which understands the life sciences industry—to design and deploy the multilingual, multicurrency solution for various sites across three time zones, using a single instance and enabling Mallinckrodt to access a centralized snapshot of its business at any time
  • Enabled sales offices across Asia Pacific, Europe, the Middle East, Africa, and Brazil to use the same ERP system without rewriting programs or translating the language
  • Optimized business-process monitoring. from order placement to delivery confirmation—imperative for a specialty pharmaceutical business—to overcome management and logistical challenges related to complex drug-return policies, by country
  • Implemented localization modules to improve manufacturing security—particularly for narcotics, which are tightly controlled—and helped meet statutory requirements, such as Sarbanes-Oxley compliance for more than 100 countries
  • Integrated with the company’s existing third-party, global, trade-logistics software to manage the legal, regulatory, and corporate complexities of cross-border transactions, supporting movements and transactions going from any origin to any destination in the world
  • Used Oracle’s JD Edwards EnterpriseOne Sales Order Management to efficiently manage the complexity of pharmaceutical-product orders to minimize order entry costs, exceed customer expectations, and ensure order profitability
  • Improved inventory control—reducing the incidence of shelf-life expiration for perishable drugs—thanks to more efficient and accurate information exchange
  • Streamlined financial operations and improved financial reporting accuracy and speed through JD Edwards EnterpriseOne Financials
  • Gained the ability to integrate new companies into Mallinckrodt’s ERP environment quickly to jumpstart the return on investment, reusing existing web services to complete the project faster than with traditional integration methods
  • Developed global vanilla processes using out-of-the-box JD Edwards EnterpriseOne functionality, enabling Mallinckrodt to expedite its application deployments and minimize business disruption, which is critical for a 24/7 company
  • Reduced total cost of ownership by implementing JD Edwards EnterpriseOne 9.1, rather than a less flexible ERP system from SAP
  • Used Oracle User Productivity Kit to ensure evergreen, internal-user training documentation

Why Oracle

Mallinckrodt’s parent company (Covidien) spun it off June 30, 2013 and as a result, Mallinckrodt needed an ERP system outside the United States. 

“We looked at SAP, but ultimately selected JD Edwards because it included a solid technology base (service-oriented architecture); the option to continue using our AS/4000 database and programs we were familiar with; and a built-in master-data structure. JD Edwards EnterpriseOne addressed our manufacturing and commercial needs, and our vanilla implementation ensures we can upgrade easily and routinely,” said Rebecca Dennison, director, business process controls organization, Mallinckrodt Pharmaceuticals.

Implementation Process

Working with Oracle Platinum Partner KPIT, Mallinckrodt successfully implemented JD Edwards EnterpriseOne 9.1 in numerous countries over the course of two years, on time and within budget. The implementation team installed JD Edwards EnterpriseOne in Asia Pacific and the majority of Latin America for Mallinckrodt’s commercial offices and inventory warehouses. The company has two Latin American countries remaining—Brazil and Argentina—which it is actively working to push live in 2014.

“For the JD Edwards implementation, we worked with a large global team, utilized offshore support for all development, and deployed one ERP system instance in three time zones with zero core modifications,” Dennison said.

Partner

  • Oracle Partner
    KPIT

“Oracle partner KPIT brought technical and functional knowledge to the JD Edwards implementation project. The depth KPIT’s of life sciences industry expertise and JD Edwards knowledge has been critical to the project success and timeline. We also used KPIT for onshore consulting and configuration as well as onshore and offshore technical support. I believe our project is a true example of partnering with your systems integrator and ensuring the project uses everyone’s strengths. Together we have done something I do not believe very many companies have done: met our timelines and budgets with a very successful go live,” Dennison said.