ANSTO unlocks $1m in savings following supply chain revamp

Fernando Collazo, Senior Manager, Integrated Business Management at ANSTO

SAP SE, has helped Australia’s Nuclear Science and Technology Organisation (ANSTO) unlock major operational, competitive, and reputational benefits by implementing SAP Integrated Business Planning (IBP) software, with over $1m in projected savings in the first six months.

How has SAP IBP integration benefited ANSTO?

ANSTO, one of the largest public research firms, plays a crucial role in the development of radiopharmaceuticals to improve the detection and diagnosis of disease, supplying radioisotopes and radiotracers for research and application. The implementation of SAP IBP in December 2021 enabled ANSTO to digitise its manufacturing supply chain management system, enabling teams to access reliable insights to support better decision making.

ANSTO can better manage its multiple reciprocal agreements to supply radiopharmaceuticals and more accurately plan the distribution of nuclear reactions and products with radioactive half-life. This is vital to patients in areas who need to travel long distances for treatment and rely on realistic forecasting and reliable plans to access ANSTO’s range of 1,215 products.

In just six months, ANSTO identified over $1m in projected savings due to improvements in product allocation, saw a 25% reduction in rough cut planning time, and uncovered a $500,000 opportunity to increase sales revenue. Its customer NPS score also increased.

SAP IBP solution gives ANSTO the ability to systematise its 24 months forecast, which is vital given the firm’s mandate to supply radiopharmaceuticals even during shutdown periods.

Not only does this visibility help ANSTO to improve forecasting and scenario planning to maintain reliability of supply during disruptions, peak production periods and maintenance times, but it also supports a more transparent and reliable relationship with both customers and government. Another important benefit of systemising the process is the reinforcement around the cultural aspect, specifically driving behavior and discipline to follow the process.

What were the executives’ thoughts on the integration?

“ANSTO has an incredibly complex supply chain, with multiple reciprocal agreements and over a thousand products – many with differing radioactive lifespans – to consider. By implementing SAP IBP, ANSTO now has access to reliable and real-time data that enables better decision making so that its customers can receive timely medical diagnoses and treatment,” commented Damien Bueno, President and Managing Director at SAP ANZ. 

“As a statutory body of The Australian Government, data integrity, transparency and governance are critical to ANSTO. By improving visibility and confidence in our data, SAP IBP provides a reliable single source of truth for our 24 months rolling forecast,” commented Fernando Collazo, Senior Manager, Integrated Business Management (IBP), ANSTO.

“This will help transform our firm, plan for the future and deliver savings to the taxpayer, while also boosting client satisfaction, and enabling more Aussies access to nuclear medicine.”

“A reliable source of data at the right time, reduces the need for validation and empowers the right decision making. If you think about all the time that previously went into manual data entry and cross-checking, that represents a lot of time and money that can now be invested back into nuclear research or delivering life-saving medical diagnostics and treatments.”

The success of the SAP IBP implementation has paved the way for SAP S/4HANA upgrade, which is planned to commence in 2024. Visit the SAP News Center. Follow SAP on Twitter.