Operations and Supply Chain Management Helped a Leading European Logistics Providers to Reduce Changeover Cost by 27%

Mar 2, 2021

Engagement Summary

Modern businesses must possess effective operations and supply chain processes to gain and maintain a competitive advantage in the market. Pharma operations and supply chain management is complex, it requires a number of steps that must be taken to ensure proper availability of medical facilities. The client is an American multinational pharmaceutical logistics service provider. This pharmaceutical giant was facing abrupt demand patterns from across the globe resulting in complex and inefficient supply chain processes, and was looking to leverage Quantzig’s operations and supply chain management solutions to optimize relevant processes.

The Client

The client is a leading European logistics provider for pharma companies. They mainly provide warehouses, distribution services for pharmaceutical products. This pharmaceutical logistics and warehouse services provider has been a pioneer in this field since the end of World War II. The services include different phases of pharmaceutical logistics and warehousing.

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The Business Challenge

Due to the COVID-19’s widespread impact, the client witnessed an extremely high demand for pharmaceutical products which resulted in supply chain disruptions that included inventory stock-outs and an increased turnover time. With a global customer base, the client wanted to have a flexible operations and supply chain network for dynamic business scenarios. They approached Quantzig to leverage its expertise to improvise their operations and supply chain network to mitigate risks and improve efficiency of their services. Lastly the client wanted to identify the optimum quantity of warehouses required that would help in reducing distribution cost and time.

Challenges faced by the European Pharmaceutical Logistics Service Provider included-

  1. Minimal synchronization between operations and supply chain planning and execution divisions
  2. Lack of real-time market updates
  3. Frequent stock-outs
  4. Siloed data systems for visualization and analysis

Solution Offered

On collaborating with Quantzig, this pharmaceutical logistics service provider embarked on an operations and supply chain optimization journey that focused on catering to the needs of their customers while improving lead time by leveraging supply chain analytics solutions. To help this client address their business challenges, our experts adopted a comprehensive approach that led to a complete transformation of their supply chain network. Our experts further developed a data-driven dashboard that provided real-time demand and delivery updates to the client to facilitate smooth supply chain functions. Lastly our team focused on integrating and analyzing pharmaceutical logistics, operations, and supply chain data from disparate sources to identify factors impacting pharmaceutical supply chain efficiency. The extensive use of advanced data analytics and supply chain and operation management simulation models helped generate comprehensive insights and analyze the pharma logistics supply chain issues in real-time.

Business Outcome

  1. Reduced changeover time and cost through optimized production plans
  2. Reduced changeover cost by 27% in a period of six months
  3. Streamlined supply chains & improved business agility
  4. Improved supply chain operations management & customer service levels

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Why Choose Quantzig’s Operations and Supply Chain Optimization Solutions?

Quantzig is a premier supply chain analytics solution provider with expertise in helping leading businesses from across the globe carry out advanced supply chain and operation management engagements and achieve optimum efficiency.

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