Global Pharmaceutical Services – Improving Operational Efficiency for Pharmaceutical Logistics

Client wanted to develop a reporting platform to provide insight to improve labor management forecasting, establish productivity benchmarks, improve operational efficiency, and support allocation of costs based on effort, rather than volume, for their pharmaceutical distribution centers.

Client Profile

This Pharmaceutical Specialty Services company connects all aspects of the healthcare industry together; applying innovation toward everything from the way pharmaceuticals are sourced and distributed to the delivery of personalized patient care. This company provides pharmaceutical products, value-driving services and business solutions that improve access to care. Tens of thousands of healthcare providers, veterinary practices and livestock producers trust them as their partner in the pharmaceutical supply chain. This company is ranked in the top 3% on the Fortune 500. With more than $146B in annual revenue, their global operating network comprises of 140+ offices in 50+ countries.

Challenge

An Excel model was used to manage distribution center staff. Due to the desire to have near-real time data, an employee of the warehouse would execute a warehouse control system report each hour and manually enter pertinent data points into an Excel model. The model was used to make decisions about how staff should be utilized in various DC tasks, whether overtime would be needed, and if so, how the number of staff and the duration that would be required. Additionally, the DCs needed data to support their assertion that products requiring special handling required significantly more effort to process, therefore business units with specialty program products should shoulder more of the costs.

Solution

  • Created data mart & BI solution that provided ad-hoc analysis of distribution center tasks, personnel, and product using data sourced from the warehouse control system
  • Implemented leading edge data discovery and visualization tool to improve insight into data
  • Near-real time data via automated incremental refresh of data mart and visualization model

Benefits

  • Improved labor management forecasting
  • Ability to establish benchmarks for key distribution center tasks
  • Ability to distribute processing costs across internal business units accurately due to increased visibility and understanding of processing effort
  • Evaluate staff efficiency
  • Improve product slotting within distribution zones

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