Cardinal Health
Enterprise RISE Program
Published in 2024/25
Client Synopsis
What did they do?
Why did they do it?
• More predictable ERP pricing model and fee structure with less volatility
• Enterprise RISE Program, moving on-premise estate to RISE. CAH was an early adopter of Google Cloud (GC) and needed to decide whether to renew the GC C2C in full or move the SAP workloads to SAP Cloud ERP. CAH decided to move the SAP workloads to SAP Cloud ERP. • RISE Private Tailored Option with a seven year commit-to- consume contract, including Enhanced Operating Services (EOS) • SAP primes the lift and shift projects of the Program
• Cardinal health (CAH) is a Fortune 15 with over $215B FY24 revenue. The Pharma Segment, pharma distribution, generates overs $200B in revenue but is a low margin business, 350 basis points in gross and operating margin of 105 basis points. Medical Supplies business generates $13B in revenue and its top and bottom lines have been challenged since Covid.
• Simplified ERP operating model with fewer vendors and more accountability
• Utilize SAP key resources more strategically while letting SAP run “SAP” • De-risk the move to a larger SAP platform and mitigate future risks, including the move to S4H Cloud • Data Management Complexity: Growth by acquisition led to multiple data sources and applications, causing complexity, inefficiency, and operational risk. • Finance Automation Needs: The finance team required automation for pricing, revenue recognition, and profitability analysis.
How SAP solved a problem for the customer?
3 things that helped drive the strategy
Industry
• SAP Cloud ERP will be Cardinal Health’s “Platform for Growth”. SAP, in collaboration with GC, will delver and provide a Cloud ERP Service capable of supporting CAH’s aggressive growth objectives in one centralized ERP cloud environment. CAH is positioned to be one of the first HANA customers utilizing the next generation 32TiB X4 machines in GC. • RISE with SAP provides CAH an agile and modern ERP operating model
• Digitally leapfrog CAH’s competitors with continuous adoption and consumption of SAP cloud innovations and S4H Cloud • Alignment with SAP’s strategy and technology roadmap with SAP being one of CAH’s most strategic and trusted IT partners • Detailed analysis with CAH IT and Finance to fully understand and quantify the puts and takes involved with their generational ERP investment decision
• Healthcare/Wholesale Distribution
Region
•
Midwest
MP Name
•
Tom Cometa
The team involved: ( roles / names) • Toni Steinke, IAE; Sachi Umashankar, SAE; Steve Van Pelt, Value Advisor; Sara Stasila, RISE AE; Moshe Friedman, CAA; Pravin Narwekar, EA; Gopi Kalahasthy, MW VP; and Rob Walsh and Sean Usowski, Strategic Sales
Reference: Y/N No-just starting
MP: can contact Tom Cometa, MP, but too early for contact with Cardinal Health
25
INTERNAL – SAP and Customers Only
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