Press Release

Yunnan Baiyao Group to Bring Traditional Chinese Medicine to a Global Audience With Manhattan Associates

Leading Chinese pharmaceutical company to dramatically increase production and fulfillment by leveraging the industry’s most advanced warehouse management system

SHANGHAI and ATLANTA, February 27, 2019

Yunnan Baiyao Group, one of China’s largest pharmaceutical and health care companies, has selected Manhattan Associates Inc.’s (NASDAQ: MANH) warehouse management system (WMS) to transform its digital supply chain and power the next phase of its growth strategy. Manhattan’s WMS will help the manufacturer optimize its distribution operations and meet rising demand for its products across the globe, whilst ensuring compliance with stringent production and traceability regulations.

Founded in 1971, Yunnan Baiyao has established itself as one of China’s most important pharmaceutical companies, selling a broad range of medicinal and personal care products. Thanks to its unique ability to combine traditional Chinese medicine with new product innovations, the company has doubled revenues over the last five years to CNY24.3 billion (US$3.5 billion) in 2017. With its sights firmly fixed on continuing this trend, it recently set out to modernize its manufacturing and distribution operations.

The pharmaceutical giant selected Manhattan’s industry-leading Warehouse Management for Open Systems (WMOS) solution to help it optimize fulfillment and throughput. The company will initially deploy Manhattan’s technology in a new distribution center (DC) adjacent to its toothpaste factory in the Kunming, Yunnan province in southwest China. Yunnan Baiyao’s toothpaste is its most important health care product and the market-leading toothpaste brand in China. Manhattan’s solution will play a key role in Yunnan Baiyao significantly increasing its toothpaste production to fulfill the growing market demand.

Xia Feng, General Manager of Yunnan Baiyao’s Engineering System Centre, said, “Manhattan WMOS will ensure on-time replenishment of our production line, accelerate the shipment of finished goods to our wholesale customers, drive efficiency improvements across our warehouse and factory floor and provide us with the scalability we need for growth. It will also provide real-time visibility of all inventory flows, ensuring we are fully compliant with the Good Manufacturing Practice (GMP) and Good Supply Practice (GSP) codes governing the traceability requirements of pharmaceutical products.”

Stone Chen, General Manager of Manhattan Associates, Greater China, said, “Yunnan Baiyao is taking the lead in the pharmaceutical sector to replace its legacy systems with state-of-the-art technology that improves the productivity, efficiency and competitiveness of its manufacturing and supply chain functions. Manhattan’s WMS solution will play a pivotal role in Yunnan Baiyao’s digital transformation and provide it with the scalable fulfillment platform it needs to be able to fully capitalize on the growth opportunities presented by rising global demand for traditional Chinese medicine.”

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About Yunnan Baiyao Group

Yunnan Baiyao Group is engaged in the manufacturing, wholesaling and retailing of traditional Chinese medicine, western medicine and personal care products. The company was founded by Mr. Qu Huan Zhang in June 1971 and has since grown to become one of China’s most important pharmaceutical companies. Headquartered in the Kunming, Yunnan province in China, Yunnan Baiyao Group is listed on the Shenzhen Stock Exchange. For more information, please visit http://www.yunnanbaiyao.com.cn.

About Manhattan Associates

Manhattan Associates is a technology leader in supply chain and omnichannel commerce. We unite information across the enterprise, converging front-end sales with back-end supply chain execution. Our software, platform technology and unmatched experience help drive both top-line growth and bottom-line profitability for our customers.

Manhattan Associates designs, builds and delivers leading edge cloud and on-premises solutions so that across the store, through your network or from your fulfillment center, you are ready to reap the rewards of the omnichannel marketplace. For more information, please visit https://www.manh.com/zh-cn.

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