GSK seeks ERP solution to rising costs

Pharmaceuticals manufacturer GSKhas announced a drop in group turnover and plans to introduce a standardised enterprise resource planning (ERP) system across its global empire to increase savings.

In its second quarter trading statement GSK said it was investigating “a move towards a single Enterprise Resource Planning platform” as part of a range of cost reduction plans being instigated at the drug maker.

Existing cost reduction plans are on target, the company said. GSK, a CIO 100 ranked manufacturer, said it will deliver savings of £1.7 billion by 2011.

Group turnover for the companydropped by two per cent to £6.7bn, which it said was due to tough competition in the USA. Sales in the US dropped by 15 per cent to £2.3bn.

However sales in consumer products increased group wide by £1.2bn and vaccines increased by £0.8bn. European and other non-US markets increased consumer revenue, with the UK accounting for a four per cent increase.

GSK makes Relenza, a treatment for the H1N1 flu virus. The company has invested $2bn in the development of Relenza and expects production to reach 190 million treatment courses by the end of the year as panic and interest in flu increases.

GSK recently extended a deal with outsource services provider Satyam to support SAP, an ERP provider.