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Gaci ERP in Laboratorios Richet

In March 2006, the "Information Technology" magazine published an article on the process of Gaci ERP selection and implementation in Laboratorios Richet.

The following is a summary of the information published by Information Technology. (March, 2006, pages 26-28)

Laboratorios Richet has operated in the field of generic drugs in Argentina for 42 years and currently has three business units: State Biddings, Pharmacies and Drug Wholesalers Market and Sales to Health Facilities and Hospitals. The company has a turnover of $36 million (Argentinian pesos), employs 170 people, and 20% of its income comes from the domestic market.

In 2004 Richet decided to invest in the systems that manage the business. The laboratory operated with BPCS from the SCA provider since 1998. According to Cristian Alonso (Financial Manager), it was necessary to hasten the change of systems, and an intense search was performed. "We studied several alternatives, but GACI appeared as the most suitable: it was installed in several companies of the industry and was as comprehensive as BPCS in manufacturing, administration and dispatch, but with a more innovative technology and at competitive prices."

At the time of making the decision, recalls Administration Manager Alejandro Tassano, "we went the opposite way, visiting GACI users before contacting the supplier, which gave us the peace of mind of choosing what we thought to be best and not what was being sold to us".

"Implementation started in March 2004 and on July 1st we were able to process the year with all the new modules, except the Production module that was ready in November that year", says Tassano.

Among other difficulties, there were certain practices that the people of Richet acknowledge as very personal. Alonso says "we have highly consolidated work schemes and we had to adapt them to GACI so as not to adapt the company to the system". Invoicing has many stages, which, according to Tassano, resulted in a very heavy process with the old system. "For example, an invoicing batch in BPCS took between one hour and one hour and a half, something we now complete in five minutes."

In addition to the $130,000 that the company invested in licenses, the project required $40,000 for customization in order to comply with the business intelligence developed along the years. According to Alonso the project "paid off right away". Partly because current maintenance cost is one third of that of BPCS and partly because there are savings from improved performance: employees used to work until the following morning at 6 a.m. on closing days, while now the work is done in the usual work schedule.

http://www.gaci.com.ar

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