The manufacturer said it expects the implementation to take approximately six months, with go-live set for May 2009.
It is "projecting significant improvements in operating cost and delivery capability as a result of the implementation", the company said in a statement.
Sphere Healthcare company secretary, Michael Power, said Sphere was "looking for a system that would bring about organisational change, not just carry out transactional duties."
"We chose SAP for a number of reasons, the main ones being solution fit and scalability to grow our business and with our business," Power said.
"We aim to increase exports this year and we must control costs effectively to remain competitive."
The implementation will occur with the assistance of SAP partner, Extend Technologies.
Sphere makes complementary healthcare products and is the largest soft gel manufacturer in Australia.
