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Customer Snapshot

Healthy Skin,
Healthy Profits

92% ROI

in five years

 

When a young chemist, Gerald Oppenheim, and his wife, Rae, a nurse, saw a need for products to restore and maintain healthy skin, they developed Ego Pine Tar Bath Solution (now Pinetarsol) in the laundry room of their suburban Melbourne home. Since then, Ego has continued to grow, researching and developing skin care products and treatments.

 

Company

Ego Pharmaceuticals Pty. Ltd

Headquarters

Braeside, Australia

Customer Website

www.egopharm.com.au

Revenue

US$88 million

Number of Employees

250

Implementation Partners

Clarity Consulting Group Australia Pty. Ltd.

Line of Business

Manufacturing, Supply Chain

Industry

Consumer Products, Life Sciences

Featured Products

SAP Business All-in-One, SAP BusinessObjects Business Intelligence, Edge edition, SAP Solution Manager

History

Revolutionary new skin care products

From its start in 1953 as a family business, Ego has grown to produce a comprehensive range of skin and health care products for sale in Australia and around the world. The name “Ego” is an acronym for Erwin and (founder) Gerald Oppenheim; Dr. Erwin Oppenheim, Gerald’s father, was a dermatologist.

        

  • 1953Ego was founded and launched Pinetarsol, the first soap alternative for sensitive skin in Australia
  • 1960Expanded into New Zealand, Singapore and Papua New Guinea
  • 1976At the request of Melbourne’s Queen Victoria Hospital, QV BathOil was developed for use by dermatologists
  • 1978Due to its popularity, QV (named after the Queen Victoria Hospital) was introduced into pharmacy
  • 1984Launched DermAid, the first dissolved hydrocortisone in the world
  • 1988Developed SunSense, world’s 1st cosmetically acceptable sunscreen using physical protection blockers and UV absorbers
  • 1990Continued to expand worldwide, launching into the Middle East
  • 2001Launched AQIUM Antibacterial Hand Gel, Australia’s first rinse free, soap-free hand sanitizer
  • 2002Medtronic released the first remote device that enables doctors to monitor patient telemetry via the Internet, and the first protein that allows the body to regrow its own bone for use in spinal fusion.
  • 2004Launched MOOV Head Lice treatment, a result of over five years of research and support by the Federal Government’s START Grant
  • 2006The company introduced the first pump that continuously monitors patient glucose, and automatically administers insulin.
  • 2011 Now selling over 120 products in over 20 nations
  • 2011Medtronic introduced an electrosurgical instrument that uses radio-frequency energy and saline to simultaneously cut and control bleeding during soft tissue and bone surgery.
  • 2012Annual revenues surpassed $16 billion.

Business Model

Winning consumers’ trust

Ego Pharmaceuticals has a unique go-to-market strategy. While the competition’s strategy has always been to offer varied levels of sun protection, Ego challenges the market by only providing the highest protection and the safest products for their customers.

 

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The strategy

“We’ve got to be more clever than the larger organizations to survive!”

Success Strategy

From research, to innovation, to growth

Innovation is part of Ego’s DNA. Ego remains an innovative company due to their constant research and production of great quality products, and they’ve also made sure to use the best systems to drive their processes. Focusing on potential growth, Ego made sure they chose a system that would grow with them.

The Challenge

Sustaining growth and gaining visibility

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“I very much needed visibility to see what was going on where.”

Finding a system that would scale with Ego’s rapid growth and provide visibility into its operations was the priority, to ensure that it was ready for the next stage in the company’s future.

Enter SAP

A clear choice

Ego Pharmaceuticals understood that SAP solutions would grow with the company and provide built-in support and proven best practices for business processes. Ego also recognized that with SAP there would be a smooth integration with existing functionality.

 

“We chose an SAP Business All-in-One solution for its strong, process-driven support that covers procurement, manufacturing, warehousing, and everything in between. The software also incorporates many of the best practices in our industry, supports multiple languages and currencies, and requires little development effort on our part.”

The SAP Experience

Managing change

With software for financials, materials and warehouse management, production planning, sales and distribution, the SAP implementation involved rigorous change management to improve operations, including modification of more than 250 operating procedures. Thanks to Clarity and SAP, Ego can run more efficiently and be better prepared for tomorrow’s challenges.

 

“We asked people who were on the shop floor, riding the forklifts, receiving goods, and taking raw materials and bringing them from the warehouse to the production area—how their processes work.”

Running Better

Access to information, creating a better business

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“Our new software has helped us implement robust processes across the organization – from international marketing, managing our point-of-sale materials, accounting, sales support, and more.”

Assigning unique identifier numbers for each version of each product in each market has dramatically reduced shipping error rates. Managers can now log in from anywhere to see order status; they also have timely, reliable information about stock levels and where products are being delivered – significantly improving efficiency.

Benefits

Solutions with benefits

Ego installed SAP Business All-in-One, the Edge edition of SAP BusinessObjects BI software and the SAP Solution Manager to increase reliability and lower total cost of ownership. Ego uses SAP Solution Manager to help meet compliance requirements; additional benefits include solution lifecycle support, integrated functions, controls, and reports, and compliance requirement traceability.

Lessons Learned

 

The return on investment over a five-year period was about 92%.

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Now it’s easy to get quality data and set strategies.

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Using SAP to create top-quality validated methods.

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The original business case had a return on investment of approximately AU$100,000 per month, which was realized quite quickly.

Today

Costs down, safety up

As a value-based pharmaceutical company, the SAP implementation has been just what Ego needed. With SAP, Ego has been able to reduce costs and save time while also increasing safety.

 

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Reducing costs, increasing safety

Journey Ahead

Promoting innovation with SAP

Ego now plans to add more products, to continue to improve existing products, and to launch into new countries. Ego will continue to innovate and grow and SAP will be right beside them.

 

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The future

“Ego’s future is all about innovation, a core business value that is emphasized throughout the company… Our SAP software will help us drive this innovation for many years to come.”

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