How to Improve the Efficiency of Your Pharma Supply Chain in 7 Easy Steps Using WMS

By Angela Cox

Benefits of a Better Pharma Supply Chain

25%

75%

Pharma Costs

Supply ChainCosts

Other

Annual spending in the pharmaceutical industry is approximately $230 billion $

$$

$

Adopting supply chain advances that are already well established in other industries could:

• Increase Revenue by $150 B • Reduce Costs by $105 B • Improve overall profit margin by $130 B

Source: McKinsey & Company Analysis

Step 1 – Upgrade Technologies

Inventory Management

• Warehouse Management System (WMS) • Increased operational efficiency reduces production and inventory

management costs • Integrate WMS into other equipment including manufacturing and

material handling – reduces manual data entry

Mobility Solutions

• Mobile devices • Increases information visibility and ability to share data in real time • Reduces errors and improves decision making capabilities

• Mobile printing • Reduces travel time throughout facility – improves labor

productivity

Step 2 – Improve Product Traceability Option 1: Implement Barcodes

• Improves product tracking with the use of mobile devices • Increases traceability throughout the supply chain – key data such

as manufacture date or expiration date can be stored in barcode

• Makes product recalls more efficient and accurate

Option 2: Implement RFID Tags & Portals

• Most efficient inventory tracking procedure – requires no additional mobile devices for scanning

• All inventory and task data is stored in tag and updated as new activity occurs

• Reduces counterfeits and product recall time

• Fast ROI period

Step 3 – Implement or Increase Quality Control Processes

Find a warehouse management system (WMS) that contains robust QA functionality

• When included in your WMS, cost of QA processes is reduced

• Quality of product is increased – brand image becomes more positive

• Likelihood of product recall is decreased, saving you processing time and money

Step 4 – Review Labor Standards

1. Analyze current processes being performed & note areas of improvement

2. Set clear standards & expectations for staff 3. Communicate how changes in processes will benefit staff

4. Identify key tasks & determine time standards for each task 5. Use your WMS as a support tool – drive behavioral changes using

productivity tracking and optimized process workflows 6. Involve management in incentive programs

Developing and implementing strict labor standards with the support of WMS functionality will reduce labor costs and optimize activity throughout your facility

Step 5 – Review Overall Supply Chain Performance

Select a WMS that can create custom reports – view these reports consistently and review specified KPIs

• Workforce productivity • Vendor performance (i.e. on-time shipment percentage) • Inventory turnover • Inventory handling costs • Manufacturing costs • Average orders vs. on hand inventory

Use these reports and analytics to compare actual performance to benchmark values. Make adjustments to close any operational gaps. This will reduce costs by increasing overall facility efficiency.

Step 6 – Improve Collaboration

Implement warehouse management software that shares data in real time

Also make use of collaboration tools including:

• Software integrations– automatic data transfer through all systems

• EDI – transfer data from orders, shipping receipts, etc. to and from customers automatically

• RFID – inventory handling data is transferred in real time to WMS

• Mobile devices – integrate into WMS to transfer scanned information in real time

Collaboration between WMS and other paired software/hardware increases data accuracy and reduces manual data entry. This in turn increases profits due to reduced errors increase labor productivity.

Step 7 – Evolve towards Omni Channel

Cut out the middle man – streamline all sales channels – increase your bottom line

• Remove wholesalers and sell directly to pharmacies or customers

• Distribution time is reduced with B2C sales • Profit increased by eliminating another set of hands handling

product • Potentially reduce errors that occur later in the supply chain • Sell more product with ability to price product more

competitively Find a flexible, adaptable WMS that can handle large quantities of orders

regularly and integrate into ERP systems.

Contact Us

800.933.2839 Web chat