Dis-Chem Pharmacies Limited - SAP Innovation Awards 2025
Dis-Chem is transforming its operations to enhance healthcare services in South Africa, focusing on improving warehouse efficiency through automation. By leveraging SAP BTP and SAP Build Process Automation, the company has reduced waste, improved delivery performance, and minimized reliance on skilled labor, all while maintaining compliance and control. Entry #5362 Download the DocumentPUBLIC
Entry Pitch Deck
Dis-Chem Pharmacies Limited
Wholesale distribution
Creating robotic automations in the warehouse
to raise the bar on order fulfillment accuracy
Dawid Oelofse, Supply Chain Executive
Entry Pitch Deck
Dis-Chem Pharmacies Limited
Wholesale distribution
Creating robotic automations in the warehouse
to raise the bar on order fulfillment accuracy
Dawid Oelofse, Supply Chain Executive
COMPANY NAME:
HEADQUARTERS:
INDUSTRY:
WEBSITE:
NUMBER OF EMPLOYEES:
Company information
2
Dis-Chem Pharmacies Limited
Johannesburg, South Africa
Wholesale distribution
https://dischemgroup.com
~21,000
Dis-Chem Pharmacies Limited is part of Dis-Chem Group, a prominent
retail pharmaceutical group established in 1978. A commitment to
exceptional customer service, diverse product offerings, and an
everyday low-price strategy has propelled Dis-Chem into a highly
respected brand in the eyes of South African consumers.
CJ Distribution, part of the group’s wholesale division, operates
nationally with warehouses strategically located in Gauteng
(Longmeadow and Midrand), KwaZulu-Natal (Durban), Mpumalanga
(Delmas), and the Western Cape (Cape Town).
In a fast-paced, customer-focused environment where tight cutoff times,
accuracy, and swift handling of exceptions are nonnegotiable, Dis-Chem
sought new ways to help its distribution business meet strategic goals.
The company embraced automation not just as a solution for one area
but as a game changer for multiple facets of its warehouse operations,
from streamlining warehouse tasks to enhancing system support.
PUBLIC
HEADQUARTERS:
INDUSTRY:
WEBSITE:
NUMBER OF EMPLOYEES:
Company information
2
Dis-Chem Pharmacies Limited
Johannesburg, South Africa
Wholesale distribution
https://dischemgroup.com
~21,000
Dis-Chem Pharmacies Limited is part of Dis-Chem Group, a prominent
retail pharmaceutical group established in 1978. A commitment to
exceptional customer service, diverse product offerings, and an
everyday low-price strategy has propelled Dis-Chem into a highly
respected brand in the eyes of South African consumers.
CJ Distribution, part of the group’s wholesale division, operates
nationally with warehouses strategically located in Gauteng
(Longmeadow and Midrand), KwaZulu-Natal (Durban), Mpumalanga
(Delmas), and the Western Cape (Cape Town).
In a fast-paced, customer-focused environment where tight cutoff times,
accuracy, and swift handling of exceptions are nonnegotiable, Dis-Chem
sought new ways to help its distribution business meet strategic goals.
The company embraced automation not just as a solution for one area
but as a game changer for multiple facets of its warehouse operations,
from streamlining warehouse tasks to enhancing system support.
PUBLIC
CHALLENGE: SOLUTION: OUTCOME:
Creating robotic automations to meet customer needs
3
Increase in warehouse equipment
utilization
People per shift redeployed from low-value
work to tasks involving more judgment
and skill
Unmanned robotic automations active in
the warehouse management system
environment
62%
Dis-Chem Pharmacies Limited
8 98
To meet changing healthcare needs, Dis-Chem is
transforming its business model to play a more
proactive role in providing essential health services
in South Africa with its #BetterHealthStartsHere
initiative.
To create extra capacity to meet this need,
Dis-Chem sought to improve operational efficiency,
with a focus on its warehouse operations. The
company wanted to increase productivity, reduce
waste, and improve on-time and in-full deliveries to
meet customer expectations.
Dis-Chem had built its warehouse operations on the
extra stack option for SAP S/4HANA Cloud Private
Edition, extended warehouse management. With
access to SAP Business Technology Platform
(SAP BTP), Dis-Chem created automations for
low-volume and low-value processes using the
SAP Build Process Automation solution.
From operational housekeeping, to technical
support and monitoring for warehouse systems, to
making enhancements to operational processes, the
solution allows Dis-Chem to meet strategic goals
without expanding its technology footprint.
Dis-Chem has successfully automated a range of
low-volume and low-value processes that would not
have been feasible from a cost perspective to
address by other means.
In doing so, it has minimized its reliance on skilled
labor to perform tasks that are automation friendly,
improving warehouse efficiency and freeing its
people to focus on tasks that provide more value.
And as SAP BTP provides a unified environment to
monitor the automations, Dis-Chem has strong
control over this work from a compliance and audit
perspective.
PUBLIC
Creating robotic automations to meet customer needs
3
Increase in warehouse equipment
utilization
People per shift redeployed from low-value
work to tasks involving more judgment
and skill
Unmanned robotic automations active in
the warehouse management system
environment
62%
Dis-Chem Pharmacies Limited
8 98
To meet changing healthcare needs, Dis-Chem is
transforming its business model to play a more
proactive role in providing essential health services
in South Africa with its #BetterHealthStartsHere
initiative.
To create extra capacity to meet this need,
Dis-Chem sought to improve operational efficiency,
with a focus on its warehouse operations. The
company wanted to increase productivity, reduce
waste, and improve on-time and in-full deliveries to
meet customer expectations.
Dis-Chem had built its warehouse operations on the
extra stack option for SAP S/4HANA Cloud Private
Edition, extended warehouse management. With
access to SAP Business Technology Platform
(SAP BTP), Dis-Chem created automations for
low-volume and low-value processes using the
SAP Build Process Automation solution.
From operational housekeeping, to technical
support and monitoring for warehouse systems, to
making enhancements to operational processes, the
solution allows Dis-Chem to meet strategic goals
without expanding its technology footprint.
Dis-Chem has successfully automated a range of
low-volume and low-value processes that would not
have been feasible from a cost perspective to
address by other means.
In doing so, it has minimized its reliance on skilled
labor to perform tasks that are automation friendly,
improving warehouse efficiency and freeing its
people to focus on tasks that provide more value.
And as SAP BTP provides a unified environment to
monitor the automations, Dis-Chem has strong
control over this work from a compliance and audit
perspective.
PUBLIC
4
Today, process automation is central to
our operations, enhancing efficiency
across housekeeping in the warehouse
management system, improving
operational performance, and
streamlining system management.
Dawid Oelofse, Supply Chain Executive
PUBLIC
Today, process automation is central to
our operations, enhancing efficiency
across housekeeping in the warehouse
management system, improving
operational performance, and
streamlining system management.
Dawid Oelofse, Supply Chain Executive
PUBLIC
GLOBAL CHALLENGES
Challenges
BUSINESS CHALLENGES
PUBLIC 5
The latest projections by the United Nations suggest that the global
population could grow to around 8.5 billion in 2030, 9.7 billion in
2050, and 10.4 billion in 2100.
The world’s population is also aging. The United Nations also
estimates that by 2050, there will be 2.1 billion people worldwide
who are 60 years of age or older.
As the population grows and ages, there are increasing rates of
chronic illnesses—including diabetes, hypertension, respiratory
disorders, as well as obesity—that need long-term care and
management. Yet, healthcare systems are stressed from workforce
shortages and capacity challenges.
In tandem, the consequences of pollution and resource depletion
are driving heightened awareness of sustainability and responsible
consumption.
As the healthcare landscape evolves, pharmacists’ roles have been
expanding beyond the traditional supplying and dispensing of
medical products to improving patient care. In light of this
expansion, Dis-Chem is transforming its business model to play a
more proactive role in providing essential health services in South
Africa with its #BetterHealthStartsHere initiative.
As retail customers have become more demanding, expecting
faster lead times and putting pressure on delivery services, the
company is doubling down on its efforts to increase customer
satisfaction by improving on-time and in-full deliveries.
Dis-Chem had been relying heavily on skilled labor to manually
perform many routine, systems-based processes in its distribution
business, and it wanted to find a way to automate these tasks.
It also needed to cut physical waste from its distribution business
by reducing the need for inventory rework where goods need to be
repackaged.
Challenges
BUSINESS CHALLENGES
PUBLIC 5
The latest projections by the United Nations suggest that the global
population could grow to around 8.5 billion in 2030, 9.7 billion in
2050, and 10.4 billion in 2100.
The world’s population is also aging. The United Nations also
estimates that by 2050, there will be 2.1 billion people worldwide
who are 60 years of age or older.
As the population grows and ages, there are increasing rates of
chronic illnesses—including diabetes, hypertension, respiratory
disorders, as well as obesity—that need long-term care and
management. Yet, healthcare systems are stressed from workforce
shortages and capacity challenges.
In tandem, the consequences of pollution and resource depletion
are driving heightened awareness of sustainability and responsible
consumption.
As the healthcare landscape evolves, pharmacists’ roles have been
expanding beyond the traditional supplying and dispensing of
medical products to improving patient care. In light of this
expansion, Dis-Chem is transforming its business model to play a
more proactive role in providing essential health services in South
Africa with its #BetterHealthStartsHere initiative.
As retail customers have become more demanding, expecting
faster lead times and putting pressure on delivery services, the
company is doubling down on its efforts to increase customer
satisfaction by improving on-time and in-full deliveries.
Dis-Chem had been relying heavily on skilled labor to manually
perform many routine, systems-based processes in its distribution
business, and it wanted to find a way to automate these tasks.
It also needed to cut physical waste from its distribution business
by reducing the need for inventory rework where goods need to be
repackaged.
PROJECT OBJECTIVES WHY SAP
Objectives
6PUBLIC
• Automate tasks that are methodical, repetitive, and rules based
to increase efficiency and minimize low-value work requirements
• Minimize the hours employees and contingent workers spend
performing routine tasks
• Reduce order lead times and increase on-time and in-full
deliveries
• Reduce inventory rework requirements to minimize the amount
of packaging material used to fulfill orders
• Proven experience with SAP software, with the company’s
warehouse operations built on SAP S/4HANA Cloud Private
Edition, extended warehouse management, extra stack
• Intelligent automation capabilities offered by SAP Build Process
Automation embedded in SAP BTP, which is already part of
Dis-Chem’s business landscape
Objectives
6PUBLIC
• Automate tasks that are methodical, repetitive, and rules based
to increase efficiency and minimize low-value work requirements
• Minimize the hours employees and contingent workers spend
performing routine tasks
• Reduce order lead times and increase on-time and in-full
deliveries
• Reduce inventory rework requirements to minimize the amount
of packaging material used to fulfill orders
• Proven experience with SAP software, with the company’s
warehouse operations built on SAP S/4HANA Cloud Private
Edition, extended warehouse management, extra stack
• Intelligent automation capabilities offered by SAP Build Process
Automation embedded in SAP BTP, which is already part of
Dis-Chem’s business landscape