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How to put a smile on faces of
your suppliers and customers?
The MZR & Kemofarmacija story:
Interactive B2B and B2S healthcare wholesale portal

Gregor Humar, CIO at MZR d.o.o., Slovenia
SmarterCommerce Global Summit, Monaco, 18th of June 2013
Slovenia – in the heart of Europe

population: 2 mio
20.000 km2

2
Sources: Eurostat, The HIIS 2007
Business Report, Statistical office RS
*Purchasing Power Standards
Kemofarmacija - Slovenia‟s Leading
Pharmaceutical Wholesaler
- The broadest product portfolio
- The best solution “on-demand”
One point of interaction with ALL of the partners of Kemofarmacija

Reliable + Secure+ Fast
All the necessary information for the pharmacist, every day
High quality of logistics, services and consulting

- Nation-wide coverage
3
Pharmaceutical Supply System

Pharmaceutical industry
Pharmaceutical wholeseller
18
Community
pharmacies

Hospital
pharmacies

Speciality stores

Patients
4
Kemofarmacija at a glance
Company Portfoglio





160 employees,
more than 16.000 products on stock (unlimited on request),
more than 400 suppliers from all over the globe ,
more than 1000 B2B customers (all community and hospital pharmacies,
majority of healthcare centers, veterinarians, specialty stores).

Order Volume








more than 90% of orders arrive electronically via New Elona and A2A
(application to application integration via secure, asynchronous web services)
the call center receives more than 700 calls each day,
more than 500 orders each day, i.e. up to 32.000 item lines a day,
average order processing time within the warehouse about 30 minutes,
more than 30% of lines automatically processed (a-frame),
most advanced storage system in the branch,
every day delivery to the majority of our customers.
5
MZR – smart IT solutions







IBM Premier Business Partner
Leading Websphere Commerce implementator in region
B2B, B2S and B2C implementations, more than 10 years of experiences in
Websphere Commerce (since V4)
Export oriented (mainly Europe and Middle East)
Approx. 15% annual revenue growth

6
Kemofarmacija d.d.
– subsidiary of Celesio
Europe„s No. 1 in Pharmaceutical Distribution
NL

NO

UK

DK

IE

DE

BE

CZ

FR

AT

Status: 31/12/2012
Source: http://www.celesio.com

16 countries
39,000 employees
> 22 billion EUR of revenue
in 2012
136 warehouses (branches)
> 2,200 own pharmacies

SI

PT

ES

3 divisions in Europe:
 Wholesale
 Pharmacies
 Services

SVI

IT

7
E-ordering

history in Kemofarmacija

Elona, e-ordering solution in Kemofarmacija


1997
Start of B2B with enthusiastic pharmacists
(Lotus Notes)



2001
First Elona portal implementation (IBM WebSphere Application
Server)



2004
Elona backup system established (MS environment)



2009 +
New Elona (IBM WebSphere Commerce Enterprise)



2012 +
E-Nabava (IBM WebSphere Commerce Enterprise)

8
E-Commerce Project Requirements


IBM System i compliant solution



All data master files and other core data should remain on the ERP S/21
application. The permanent data synchronization process should be
enabled between New Elona and ERP.



The new e-ordering system should not require any specific platform,
standard or protocol and should be separated from other application as
much as possible (encapsulation)



The solution should support a wide variety of customers: different
behavior of ordering, several levels of access rights, different catalogs,
different pricelist and discount list,…
For example: pharmacy chains, hospitals, veterinary stations, doctors,

special stores, health care institutions.



Robust, stable, scalable, fast and reliable solution



A powerful CMS should be integrated

9
New Elona (B2B) – project goals
Introduce new functionalities required on the market
 Renovation of the old fashion portal based on 2001 technology: fulfill the
required functionality of the customer‟s increasing needs; add the common
portal functionalities as offered on the modern sales portals
 Collect and adapt the market approved functionalities of the solutions in the
main Celesio countries
Release Call Center staff: Call center load decrease
Kemofarmacija home page modernization :
 a completely new design and UI required
Use of standards:
 Encryption and asynchronos/synchronous web services based integration with
ERP and partners‟ environments (A2A)
Customer multilevel access implementation
 Different customer roles: goods receiving, order approval, financial status
checking,…
Higher level of B2B automation
10
Multivendor approach to e-commerce

11
Project milestones

12
Technological component configuration
Core programming
 WebSphere Commerce (WSC) is a great fit to support
Kemofarmacija‟s long term needs
 Special user requirements covered with an upgraded
functionalities implemented by company MZR
 Crucial part of the project: integration with ERP (S/21)
implemented by companies LinkPro (now Arsake) and MZR
Technical details
 Based on the IBM WebSphere Commerce framework, Java
(J2EE), Web services and Joomla! CMS system (integration!)
 All the core data stays on main ERP on S21 system and is
synchronized with data on the New Elona (B2B) and E-Nabava
(B2S)
13
New Elona + E-Nabava Architecture

14
5 major goals of the E-nabava (B2S) project
1. Build a modern portal for suppliers and install a large number of
new reviews and features as they are requested by modern
business processes.
2. Better and faster access to relevant information
(f.e. Product lists, signal of stock in Kemofarmacija, orders from
Kemofarmacija, suppliers pre-orders, short expiry stock review, forecast for
out of stock articles, new products data, business analysis reports).

3. More options for customized import and export of data
4. Higher automation of work process
(reduction of errors, elimination of double work with data entry, increased
responsiveness ).

5. Possibility of different levels of access to web portal content
(hierarchy tree structure with filter to permitted applications and features).
Access to the web portal possible only with authorized username and password!
15
Goals reached! And sale still rising….

16
Time schedule of the E-Nabava project
jan.12

feb.12

mar.12

apr.12

maj.12

jun.12

jul.12

avg.12

sep.12

okt.12

nov.12

dec.12

PHASE 1
The structure and construction of the portal with:

- Supplier Product List
- Signal of stock in Kemofarmacija
- Review of orders from Kemofarmacija
- Search feature for products and contents
- Information content: Factsheet, Farmainfo,
marketing price list,…
10 selected suppliers were invited to test
the portal.

PHASE 2
The functionalities and content of the portal was upgraded:

- electronic transmission of data changes to existing products
- electronic data entry for new articles
- forecast for out of stock articles, short expiry dates
- electronic entry of supplier pre orders
- review and archive of supplier pre orders
- Review of KF orders (insight into status, order import with
confirmation export options)
- electronic entry of article recall
- electronic entry of price changes
App. 120 suppliers started to use the e-nabava web portal.
17
Most used are functionalities are pre-order entry and electronic
entry of article data.

jan.13
Time schedule of the E-Nabava project
dec.12

jan.13

feb.13

mar.13

apr.13

maj.13

jun.13

jul.13

avg.13

sep.13

okt.13

PHASE 3
Implementation of functionalities and content of web portal e-nabava and increase
number of users and suppliers.
- possibility for import and export of order confirmations and delivery notes
- different roles of web portal users
- business analysis reports (payable services)
- electronic entry for special offers of suppliers (public tenders)
- announcements and review of supplier sales promotions, actions,..
- electronic labeling entry
- english version of web portal for suppliers abroad
- increased level of automation of different online features

18

nov.13

dec.13
Goals reached! And more…
With new web portal E-Nabava (B2S), Kemofarmacija set IT standards for
electronic business models with suppliers and so created strategic and
competitive

advantages

between

wholesalers

supplying

health

care

providers.

19
Let‟s take it for a ride! LIVE demo!

20
We CAN make IT happen!
Thank You! Q + A ?
Check the case study:
http://www-01.ibm.com/software/success/cssdb.nsf/CS/ARBN-92WLMM

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How to put smiles on faces with an interactive healthcare portal

  • 1. How to put a smile on faces of your suppliers and customers? The MZR & Kemofarmacija story: Interactive B2B and B2S healthcare wholesale portal Gregor Humar, CIO at MZR d.o.o., Slovenia SmarterCommerce Global Summit, Monaco, 18th of June 2013
  • 2. Slovenia – in the heart of Europe population: 2 mio 20.000 km2 2 Sources: Eurostat, The HIIS 2007 Business Report, Statistical office RS *Purchasing Power Standards
  • 3. Kemofarmacija - Slovenia‟s Leading Pharmaceutical Wholesaler - The broadest product portfolio - The best solution “on-demand” One point of interaction with ALL of the partners of Kemofarmacija Reliable + Secure+ Fast All the necessary information for the pharmacist, every day High quality of logistics, services and consulting - Nation-wide coverage 3
  • 4. Pharmaceutical Supply System Pharmaceutical industry Pharmaceutical wholeseller 18 Community pharmacies Hospital pharmacies Speciality stores Patients 4
  • 5. Kemofarmacija at a glance Company Portfoglio     160 employees, more than 16.000 products on stock (unlimited on request), more than 400 suppliers from all over the globe , more than 1000 B2B customers (all community and hospital pharmacies, majority of healthcare centers, veterinarians, specialty stores). Order Volume        more than 90% of orders arrive electronically via New Elona and A2A (application to application integration via secure, asynchronous web services) the call center receives more than 700 calls each day, more than 500 orders each day, i.e. up to 32.000 item lines a day, average order processing time within the warehouse about 30 minutes, more than 30% of lines automatically processed (a-frame), most advanced storage system in the branch, every day delivery to the majority of our customers. 5
  • 6. MZR – smart IT solutions      IBM Premier Business Partner Leading Websphere Commerce implementator in region B2B, B2S and B2C implementations, more than 10 years of experiences in Websphere Commerce (since V4) Export oriented (mainly Europe and Middle East) Approx. 15% annual revenue growth 6
  • 7. Kemofarmacija d.d. – subsidiary of Celesio Europe„s No. 1 in Pharmaceutical Distribution NL NO UK DK IE DE BE CZ FR AT Status: 31/12/2012 Source: http://www.celesio.com 16 countries 39,000 employees > 22 billion EUR of revenue in 2012 136 warehouses (branches) > 2,200 own pharmacies SI PT ES 3 divisions in Europe:  Wholesale  Pharmacies  Services SVI IT 7
  • 8. E-ordering history in Kemofarmacija Elona, e-ordering solution in Kemofarmacija  1997 Start of B2B with enthusiastic pharmacists (Lotus Notes)  2001 First Elona portal implementation (IBM WebSphere Application Server)  2004 Elona backup system established (MS environment)  2009 + New Elona (IBM WebSphere Commerce Enterprise)  2012 + E-Nabava (IBM WebSphere Commerce Enterprise) 8
  • 9. E-Commerce Project Requirements  IBM System i compliant solution  All data master files and other core data should remain on the ERP S/21 application. The permanent data synchronization process should be enabled between New Elona and ERP.  The new e-ordering system should not require any specific platform, standard or protocol and should be separated from other application as much as possible (encapsulation)  The solution should support a wide variety of customers: different behavior of ordering, several levels of access rights, different catalogs, different pricelist and discount list,… For example: pharmacy chains, hospitals, veterinary stations, doctors, special stores, health care institutions.  Robust, stable, scalable, fast and reliable solution  A powerful CMS should be integrated 9
  • 10. New Elona (B2B) – project goals Introduce new functionalities required on the market  Renovation of the old fashion portal based on 2001 technology: fulfill the required functionality of the customer‟s increasing needs; add the common portal functionalities as offered on the modern sales portals  Collect and adapt the market approved functionalities of the solutions in the main Celesio countries Release Call Center staff: Call center load decrease Kemofarmacija home page modernization :  a completely new design and UI required Use of standards:  Encryption and asynchronos/synchronous web services based integration with ERP and partners‟ environments (A2A) Customer multilevel access implementation  Different customer roles: goods receiving, order approval, financial status checking,… Higher level of B2B automation 10
  • 11. Multivendor approach to e-commerce 11
  • 13. Technological component configuration Core programming  WebSphere Commerce (WSC) is a great fit to support Kemofarmacija‟s long term needs  Special user requirements covered with an upgraded functionalities implemented by company MZR  Crucial part of the project: integration with ERP (S/21) implemented by companies LinkPro (now Arsake) and MZR Technical details  Based on the IBM WebSphere Commerce framework, Java (J2EE), Web services and Joomla! CMS system (integration!)  All the core data stays on main ERP on S21 system and is synchronized with data on the New Elona (B2B) and E-Nabava (B2S) 13
  • 14. New Elona + E-Nabava Architecture 14
  • 15. 5 major goals of the E-nabava (B2S) project 1. Build a modern portal for suppliers and install a large number of new reviews and features as they are requested by modern business processes. 2. Better and faster access to relevant information (f.e. Product lists, signal of stock in Kemofarmacija, orders from Kemofarmacija, suppliers pre-orders, short expiry stock review, forecast for out of stock articles, new products data, business analysis reports). 3. More options for customized import and export of data 4. Higher automation of work process (reduction of errors, elimination of double work with data entry, increased responsiveness ). 5. Possibility of different levels of access to web portal content (hierarchy tree structure with filter to permitted applications and features). Access to the web portal possible only with authorized username and password! 15
  • 16. Goals reached! And sale still rising…. 16
  • 17. Time schedule of the E-Nabava project jan.12 feb.12 mar.12 apr.12 maj.12 jun.12 jul.12 avg.12 sep.12 okt.12 nov.12 dec.12 PHASE 1 The structure and construction of the portal with: - Supplier Product List - Signal of stock in Kemofarmacija - Review of orders from Kemofarmacija - Search feature for products and contents - Information content: Factsheet, Farmainfo, marketing price list,… 10 selected suppliers were invited to test the portal. PHASE 2 The functionalities and content of the portal was upgraded: - electronic transmission of data changes to existing products - electronic data entry for new articles - forecast for out of stock articles, short expiry dates - electronic entry of supplier pre orders - review and archive of supplier pre orders - Review of KF orders (insight into status, order import with confirmation export options) - electronic entry of article recall - electronic entry of price changes App. 120 suppliers started to use the e-nabava web portal. 17 Most used are functionalities are pre-order entry and electronic entry of article data. jan.13
  • 18. Time schedule of the E-Nabava project dec.12 jan.13 feb.13 mar.13 apr.13 maj.13 jun.13 jul.13 avg.13 sep.13 okt.13 PHASE 3 Implementation of functionalities and content of web portal e-nabava and increase number of users and suppliers. - possibility for import and export of order confirmations and delivery notes - different roles of web portal users - business analysis reports (payable services) - electronic entry for special offers of suppliers (public tenders) - announcements and review of supplier sales promotions, actions,.. - electronic labeling entry - english version of web portal for suppliers abroad - increased level of automation of different online features 18 nov.13 dec.13
  • 19. Goals reached! And more… With new web portal E-Nabava (B2S), Kemofarmacija set IT standards for electronic business models with suppliers and so created strategic and competitive advantages between wholesalers supplying health care providers. 19
  • 20. Let‟s take it for a ride! LIVE demo! 20
  • 21. We CAN make IT happen! Thank You! Q + A ? Check the case study: http://www-01.ibm.com/software/success/cssdb.nsf/CS/ARBN-92WLMM