CASE STUDY

How did we help reduce operational costs with better route optimization for the pharma giant? 

Oct 6, 2022

Highlights of the Case Study: 

Particulars Description 
Client A leading US-based pharmaceutical company that was seeking to streamline its operational channels. 
Business Challenge The client needed to lower service delivery costs and create workable transportation routes considering real-time events like equipment availability, traffic, and market needs. 
Impact Quantzig’s route optimization solutions improved visibility into logistics route planning and transportation workflows. Quantzig’s big data analytics and supply chain analytics solution helped the client reduce operational costs. 

Game-Changing Solutions for the Pharmaceutical Industry 

Pharmaceutical companies need to contend with escalating transportation expenses, high driver turnover, a lack of drivers, rising delivery volumes, and ever-increasing consumer expectations. These factors lead to a catastrophic increase in operational costs, which significantly impacts profit margins. Thus, pharmaceutical clients must rely on technology to implement better cost control and resource optimization.  

Using route optimization solutions including big data analytics and transportation analytics can help pharma companies to successfully handle challenges with route optimization. Businesses can combine transportation data with information from other databases using Quantzig’s big data analytics and transportation analytics solutions. Real-time monitoring and powerful machine learning algorithms can help with route optimization to ensure on-time delivery of goods and cost savings. 

The Challenge for our client 

Our client is a leading US-based pharmaceutical company that wanted to streamline its operational channels. The client intended to lower service delivery costs and create workable transportation routes. The client approached Quantzig to help discover the best locations for drug storage and transportation. The client had to deal with a wide range of challenges while providing last-mile delivery services for pharmaceutical products, including restrictions on the number of trucks that could be used, unique storage needs, a lack of visibility in logistics, traffic restrictions, and others. Some of the significant issues that the client was struggling with were as follows: 

  • Inefficient logistics route maps 
  • Unexpected increase in product demand 
  • Lack of raw materials because of a broken supply chain 
  • Absence of a systematic strategy to address interruptions and drive results 
  • Supply chain interruptions brought on by the COVID-19 crisis 
  • Safety regulations for distribution in different geographies 
  • Need for temperature control for pharma supplies 

Quantzig’s Route Optimization Solutions 

The client was able to overcome distribution and delivery issues with the help of the Quantzig’s route optimization solutions. The client was thus able to handle unexpected demand and could also reduce the time required for route planning. To assist the client, Quantzig assembled a team of analysts, supply chain optimization specialists, and digital architects that employed a thorough two-phased methodology focused on gathering and evaluating supply chain data. The first phase consisted of implementing a process for data collection and standardization. While phase two involved utilizing the inputs from the first phase to create and implement a logistics route optimization model. Our analytic system was designed to facilitate the following attributes: 

  • Real-time scheduling and route monitoring 
  • Transit time through weekdays and weekends 
  • Delivery standards for time-critical deliveries 

Impact Analysis of Quantzig’s Route Optimization Solutions 

The logistics route optimization solutions thoroughly examined the supply chain operations, which improved visibility into logistics route planning and transportation workflows. Quantzig’s big data analytics and supply chain analytics solution helped the client reduce operational costs. Additionally, smartphone GPS tracking made real-time delivery notifications and alerts available to customers. The client also evaluated various transport options to cater to the fluctuating demand without compromising SLAs. Quantzig’s specialized logistics route optimization capabilities had the following impact on business: 

  • Reduced operating costs and enhanced client experience 
  • Analyzed demand patterns in real-time for crucial logistics decisions 
  • Improved safety and reduced mileage  
  • Coordinated and integrated IT systems to boost productivity and lower risks 

Key Outcomes 

Pharmaceutical manufacturers need reliable logistics route optimization solutions to handle supply chain disruptions efficiently and cater to the market’s changing needs. These solutions help to improve logistical processes while taking into account real-time events such as equipment availability, traffic, the nature of the material to be transported, etc. Quantzig’s recommendations helped the client with improved visibility into logistics route planning and transportation workflows. It helped lower transportation costs and ensured optimum utilization of all available resources. 

Broad Perspective on Route Optimization in the Pharmaceutical Industry 

The transportation and distribution divisions of the pharmaceutical industry are being strengthened with the use of technology. Route optimization technology aids in balancing routine and urgent delivery demands. In addition, it reduces labor, gasoline, and visibility costs while preserving the standard of pharmaceutical supplies intended for last-mile delivery. Software for route planning is helpful for all the pharma sector stakeholders, from the delivery personnel to the end-user. It makes it easy for logistics managers to designate routes and delivery timetables for pharmaceutical supplies and helps to reduce the cost of pharmaceutical last-mile operations. 

Key Takeaways 

  • Reduced the operating costs  
  • Ensured on-time delivery  
  • Identified patterns in real-time for better decision-making 
  • Improved safety and reduced mileage  
  • Increased the productivity and lowered compliance risks 

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