Jamu Puspo Realizes Significant Savings and Gets Ready for Accelerated Growth with SAP Business One

March 6, 2007 by SAP News 0

Jamu Puspo, one of Indonesia’s fastest growing herbal medicine manufacturers, greatly improves internal efficiencies and sets out to achieve their aggressive growth ambitions with SAP Business One.

JakartaSAP today announced the successful implementation of SAP Business One at PT. Jamu Puspo Internusa (Jamu Puspo). SAP Business One is an easy-to-use business and operational management solution for emerging and dynamic businesses ranging in size from 10 to several hundred employees. The solution is simple yet powerful, allowing an immediate and complete view of both business operations and customer activities. The implementation which took just six weeks was done for 5 users by SAP Business One Partner Inti Data Utama and included the solution’s complete modules.

Since its inception in 1997, Jamu Puspo has steadily grown to become one of Indonesia’s most aggressive and innovative herbal medicine manufacturers. With a range of over forty products that include Pacekap®, PaceTea®, ProDeEm® ,and other health products, the company now supplies to all major cities throughout Indonesia and has begun exporting to Middle East, Malaysia, Taiwan and Phillipines. It employs 205 people working at headquarters in Jakarta and about 100 additional factory staff.

“The response of the market was very promising from the first year we established our company. However, our internal operations were not efficient and thus maximum growth was hindered.” said Andre Utoro, Director of the company. Before implementing SAP, Jamu Puspo’s critical business data were residing in databases that were not integrated with one another, preventing accuracy or single view of data. The company relied on manual systems which were disparate and vary from department to department. As a result, the company had to collect and process data manually, which was time-consuming and often, the data was inaccurate. Furthermore, the company was not able to quickly respond to market needs. “Since we are also catering to the export market, we have to be able to meet specific market demands. Different markets have different requirements in terms of packaging or sizing. Without reliable data, it makes it very challenging for us to calculate the actual cost of the product.” Andre explained.

In late 2005, the company began searching for a new solution and evaluated three different vendors. After about four months of research, their choice fell on SAP Business One . “We chose SAP Business One because it offered the highest value for money, was very user-friendly and promised a quick implementation time.” said Andre. “In addition, it offered the possibility for expansion.”

After the solution has gone live, it brought a number of important benefits to the company. Jamu Puspo’s management now has real-time access to timely and accurate reports, thus improving the decision making process. The system also reduced inventory turnover levels from 6 months to 2 months. The number of clerical staff in various departments can be reduced; in accounting from five people to three; in procurement and PPIC from four to two and in the logistics department from eight staffs to five. “In 2007, we estimate a savings of about Rp. 750 million (Euro 75 thousand) to Rp. 1 billion (Euro 100 thousand) from efficiency in documents alone.” explained Andre. “And this is only the beginning.”

With SAP Business One, Jamu Puspo can also be more responsive to customers. “Our adaptability to market demands has clearly improved.” said Andre. “We now can process different customer requirements very quickly and accurately.”

By integrating their entire business processes and streamlining their business operations also means that Jamu Puspo can plan for greater expansion in the future. “With the solution, we are confident to launch additional 27 products to the market this year and realize our aggressive growth ambitions. We can offer the highest value to customers and gain competitive edge against competitors” Andre concluded.

Driven by this successful implementation, Jamu Puspo intends to expand the implementation of SAP Business One at their subsidiary companies this year.

About Jamu Puspo

Launched in 1997, Jamu Puspo is one of the herbal champions of Puspa Group, a pharmaceutical group established in 1960. Since its inception, Jamu Puspo has steadily grown to become one of Indonesia’s most aggressive and innovative herbal medicine manufacturers. With a range of over twenty products that include Pacekap®, PaceTea®, ProDeEm®and other health products, the company now supplies to all major cities throughout Indonesia and has begun exporting to Middle East, Malaysia, Taiwan and Phillipines. It employs 205 people working at headquarters in Jakarta and about 100 additional factory staff.