Blue Yonder Case Studies Doctoring Up the Supply Chain

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	Doctoring Up the Supply Chain Blue Yonder

Doctoring Up the Supply Chain

Blue Yonder

Technology Category	Functional Applications - Inventory Management Systems Functional Applications - Warehouse Management Systems (WMS)
Applicable Industries	Pharmaceuticals
Applicable Functions	Logistics & Transportation Warehouse & Inventory Management
Use Cases	Inventory Management Supply Chain Visibility
Services	System Integration
Challenge	Pharmaceutical suppliers and retailers in Denmark operate in a tremendously complex environment. Every two weeks suppliers must submit product pricing to the government without having any knowledge of how their competitors will price similar pharmaceutical products. The government then selects among bids for the lowest-priced prescription drug, which serves as the only one that it will fully reimburse for a given two-week period. After those two weeks, the process starts all over again. One company excelling in this highly competitive market is Nomeco A/S, Denmark’s largest pharmaceutical wholesaler with a 70 percent market share. Specializing in health logistics, Nomeco is an international center of excellence for the Danish pharmaceutical industry and part of the wholly owned subsidiary of the Finnish company Tamro – the largest distributor of pharmaceuticals in Northern Europe, Poland and the Baltic countries. Read More
About Customer	Nomeco A/S is Denmark’s largest pharmaceutical wholesaler with a 70 percent market share. Specializing in health logistics, Nomeco is an international center of excellence for the Danish pharmaceutical industry and part of the wholly owned subsidiary of the Finnish company Tamro – the largest distributor of pharmaceuticals in Northern Europe, Poland and the Baltic countries. Nomeco has five distribution facilities that service more than 200 pharmacies throughout Denmark. Before selecting JDA, Nomeco was creating vendor orders weekly using its ERP system. These orders were based on historical data and the team’s best estimates of what its pharmacy clients’ needs would be. Read More
Solution	To gain better insight and control over this challenging business environment, the company turned to JDA Advanced Warehouse Replenishment and JDA Advanced Store Replenishment software. These solutions enabled the wholesaler to implement an innovative VMI program that easily integrated into its existing ERP system, as well as all of its pharmacy customers’ systems. With JDA’s solutions in place, Nomeco is able to take the pricing-code information that the government provides one week before the pricing system changes, and enter that data into its ERP system. The wholesaler uses JDA Advanced Warehouse Replenishment to create purchase orders (POs) for products from its drug manufacturer vendors. JDA Advanced Store Replenishment provides real-time insight for both Nomeco and the company’s pharmacy customers involved in the wholesaler’s VMI initiative. Nomeco is also obtaining pharmacy inventory data that can then be synched with its ERP system, allowing the company to create more accurate POs. Read More Log in to view content
Contents

Technology Category

Functional Applications - Inventory Management Systems

Functional Applications - Warehouse Management Systems (WMS)

Applicable Industries

Pharmaceuticals

Applicable Functions

Logistics & Transportation

Warehouse & Inventory Management

Use Cases

Inventory Management

Supply Chain Visibility

Services

System Integration

Challenge

Pharmaceutical suppliers and retailers in Denmark operate in a tremendously complex environment. Every two weeks suppliers must submit product pricing to the government without having any knowledge of how their competitors will price similar pharmaceutical products. The government then selects among bids for the lowest-priced prescription drug, which serves as the only one that it will fully reimburse for a given two-week period. After those two weeks, the process starts all over again. One company excelling in this highly competitive market is Nomeco A/S, Denmark’s largest pharmaceutical wholesaler with a 70 percent market share. Specializing in health logistics, Nomeco is an international center of excellence for the Danish pharmaceutical industry and part of the wholly owned subsidiary of the Finnish company Tamro – the largest distributor of pharmaceuticals in Northern Europe, Poland and the Baltic countries.

About Customer

Nomeco A/S is Denmark’s largest pharmaceutical wholesaler with a 70 percent market share. Specializing in health logistics, Nomeco is an international center of excellence for the Danish pharmaceutical industry and part of the wholly owned subsidiary of the Finnish company Tamro – the largest distributor of pharmaceuticals in Northern Europe, Poland and the Baltic countries. Nomeco has five distribution facilities that service more than 200 pharmacies throughout Denmark. Before selecting JDA, Nomeco was creating vendor orders weekly using its ERP system. These orders were based on historical data and the team’s best estimates of what its pharmacy clients’ needs would be.

Solution

To gain better insight and control over this challenging business environment, the company turned to JDA Advanced Warehouse Replenishment and JDA Advanced Store Replenishment software. These solutions enabled the wholesaler to implement an innovative VMI program that easily integrated into its existing ERP system, as well as all of its pharmacy customers’ systems. With JDA’s solutions in place, Nomeco is able to take the pricing-code information that the government provides one week before the pricing system changes, and enter that data into its ERP system. The wholesaler uses JDA Advanced Warehouse Replenishment to create purchase orders (POs) for products from its drug manufacturer vendors. JDA Advanced Store Replenishment provides real-time insight for both Nomeco and the company’s pharmacy customers involved in the wholesaler’s VMI initiative. Nomeco is also obtaining pharmacy inventory data that can then be synched with its ERP system, allowing the company to create more accurate POs.

Impact #1	Decreased Nomeco’s picking lines by 20 to 25 percent for every pharmacy that uses the VMI program
Impact #2	Significantly reduced its customers’ order costs, driving customer satisfaction levels up to a near-perfect 99.8 percent
Impact #3	Increased visibility into its customers’ inventory requirements, resulting in the ability to carry fewer products and have a smaller, more balanced workforce

Impact #1

Decreased Nomeco’s picking lines by 20 to 25 percent for every pharmacy that uses the VMI program

Impact #2

Significantly reduced its customers’ order costs, driving customer satisfaction levels up to a near-perfect 99.8 percent

Impact #3

Increased visibility into its customers’ inventory requirements, resulting in the ability to carry fewer products and have a smaller, more balanced workforce

Benefit #1	Increased customer satisfaction to 99.8 percent
Benefit #2	Decreased picking lines by 20 to 25 percent for every pharmacy that leverages the VMI program
Benefit #3	Achieved inventory accuracy levels of greater than 99 percent through partnership with Tårnby Pharmacy

Benefit #1

Increased customer satisfaction to 99.8 percent

Benefit #2

Decreased picking lines by 20 to 25 percent for every pharmacy that leverages the VMI program

Benefit #3

Achieved inventory accuracy levels of greater than 99 percent through partnership with Tårnby Pharmacy

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Overview

Doctoring Up the Supply Chain

Operational Impact

Quantitative Benefit