Cost optimization of direct to pharmacy distribution for a top 20 biotech company and its 2-8°C Product.

The Challenge

Our client, a top 20 biotech company, had worked with us for several years as a third party logistics (3PL) solutions provider for these highly sensitive biotech products in the 2-8°C temperature range. Most of its activities were outsourced to us.

The volume: 15,000 passively cooled shipments per year.

Our task was to identify cost optimisation opportunities by scrutinizing the current logistics concepts, while simultaneously meeting the significantly increased demand for a higher degree of information availability.

Our Solution

In the course of the discussions we were able to convince the customer to switch to active cooling of products during delivery. Based on our years of experience in the 2-8°C range, we were able to demonstrate the actual cost of ownership for passive transport options and clearly evaluate the cost optimization potential of the change.

After the decision for this change, we assisted in the transition process and handled the notification of approximately 1,400 customers. Moreover, in the course of this process SAP-Oracle data interfaces were established between us and the customer, during which the Oracle system and its different logic presented our IT developers with major challenges.