Shanghai Pharmaceutical Successfully Implements Manhattan Associates' Warehouse Management Solution; Supply Chain Provider to Power Leading Medicine Distributor in China

Shanghai Pharmaceutical Co., Ltd., headquartered in Shanghai, hasan established and comprehensive medicine distribution network in theeastern region of China, which services the entire country of China.Mainly targeting the high-end distribution market (including tier-1and tier-2 hospitals, and tier-2 distributors), it is the main Chinesedistributor for 35 multi-national pharmaceutical companies and theonly member from China that belongs to the InternationalPharmaceutical Wholesaler Association (IPWA).

To strategically position itself in the evolving pharmaceuticaldistribution market, Shanghai Pharmaceutical Co., Ltd., has embarkedon a major project to build a first class pharmaceutical logisticsdistribution center in both China and all of Asia. With the supportfrom both the Shanghai Municipal Government and the ShanghaiPharmaceutical Group, the initiative is listed as a crucial technologyproject in Shanghai. The Manhattan Associates Warehouse Managementsolution implemented in the facility is fully integrated with the ERPhost system and a number of Material Handling Equipments such asAutomated Storage and Retrieval System (AS/RS), Pick to Light, Palletand Case Conveying System and Sorter. The project has since gainedhigh regard from the Shanghai Municipal Government and thepharmaceutical industry within China and internationally.Additionally, it will become a role model for the entirepharmaceutical logistics industry in China.

Shanghai Pharmaceutical selected Manhattan Associates due toManhattan Associates' reputation in the global market for supply chainsolutions, proven track record in implementing large and complexsolutions and ability to provide a complete suite of solutions whichallows Shanghai Pharmaceutical to expand its logistics servicesaccording to its long- term plan.

Manhattan Associates has strong expertise in the pharmaceuticaland life sciences industry with clients around the globe. Thecooperation between Shanghai Pharmaceutical Co., Ltd., and ManhattanAssociates has already drawn the attention of many organizations inChina, Asia Pacific and in the pharmaceutical industry as a whole.

"The pharmaceutical industry has the most complicated logisticsrequirements including a legion of medicine names and categories,strict Lot control, GSP's regulatory mandates, requirements on storagetemperature and humidity and frequent turnover of inventory. As aresult, the industry is particularly demanding when it comes towarehouse management solutions. The Warehouse Management solution fromManhattan Associates is able to help us optimize inventory positionsand allocate the best points of storage for goods that have differentturnover rates. This results in more efficient sorting, greaterinventory accuracy and lower labor costs. As turnover rates changewith market swings, the solution is flexible enough to automaticallyrecalculate the optimal placement of goods. This is exactly what wewere aiming to accomplish and has given us a solid foundation for oursupply chain consolidation plan," commented Dennis Deng, projectdirector of the logistics project at Shanghai Pharmaceutical Co., Ltd.

"Medicine dealers in China have been facing unprecedentedcompetition. In addition to cost cutting, there has been strongemphasis to enhance the supply chain management capability to gaincompetitive edge," commented Jeff Baum, Manhattan Associates' seniorvice president, international. "There is considerable cost in thesupply chain that can be further reduced through more effective supplychain management."

The full implementation of Manhattan Associates' solution forShanghai Pharmaceutical's network will effectively connect,consolidate and control its logistics facilities and optimize the useof resources. Manhattan Associates' solution integrates with ShanghaiPharmaceutical's ERP system to create a modern supply chaininformation and execution platform that links suppliers, distributorsand customers. This results in improved marketing, better logisticsexecution and lower supply chain costs.

About Shanghai Pharmaceutical Co., Ltd

Shanghai Pharmaceutical Co., Ltd., the leading pharmaceuticaldistributor in China, is the most extensive in geographic coverage andstrongest in composite competitiveness. It mainly deals in thedistribution of western medicines, medical equipment and healthproducts. For many years in a row, it has been elected to the top 50listed companies in China and the top 15 profitable companies inShanghai. The Shanghai Pharmaceutical Logistics Center and the newinformation system it implemented will lower its operating costs,accelerate inventory turnover and make central procurement possiblefor the company. More importantly, it allows Shanghai PharmaceuticalGroup Co., Ltd to lead its peers by introducing a third-partylogistics platform with added value in addition to fast and easylogistics and information services to suppliers, distributors,pharmacies and end-users.

About Manhattan Associates, Inc.

Manhattan Associates(R) is a leading supply chain solutionsprovider. The company's supply chain planning, supply chain execution,business intelligence and business process platform capabilitiesenable its more than 1200 customers worldwide to enhanceprofitability, performance and competitive advantage. For moreinformation, please visit www.manh.com.