PharmLog A cooperation between pharmaceutical manufacturers for the distribution of pharmaceutical products

Index
Cooperation partner
Cooperation concept
Cooperation benchmark
Cooperation development

PharmLog Presentation

1

Facts about PharmLog A futur-orientated logistics concept providing a worldwide distribution for all pharmaceutical industries.

Bönen

Unna


A cooperation between six pharmaceutical manufacturers
Multi-user-System
Responsible for storage, picking, reworking and shipping of pharmaceutical products supplied from manufacturing sites worldwide
Located in Bönen (on the eastern edge of the Ruhrgebiet) and Unna PharmLog Presentation

2

Structure of cooperation partners Shareholders

Bayer Vital GmbH CHBS Boehringer Ingelheim GlaxoSmithKline GmbH & Co. KG Meda Pharma GmbH & Co. KG Merck KGaA Novartis Pharma GmbH

PharmLog Presentation

Users Bayer Consumer Care AG Bayer Pharma AG Bayer Vital GmbH Boehringer Ingelheim bv, Netherlands Boehringer Ingelheim Comm.V, Belgium Boehringer Ingelheim Pharma GmbH & Co. KG Boehringer Ingelheim Vetmedica GmbH GlaxoSmithKline GmbH & Co. KG Jenapharm GmbH & Co. KG Meda Pharma GmbH & Co. KG Merck KGaA Merck Serono GmbH Merck Selbstmedikation GmbH Novartis Vaccines Vertriebs GmbH Novartis Pharma GmbH Novartis Pharma AG Novartis Consumer Health GmbH Novartis Tiergesundheit GmbH Albrecht GmbH Ferring Arzneimittel GmbH Mylan dura GmbH Novo Nordisk Pharma GmbH

3

Market position PharmLog PharmLog in figures (2014)


Turnover

41,7 Mio. €


Employees

346


Orders

1,703 Mio.


Order lines

8,130 Mio.


Single units

297 Mio.


Collies

4,941 Mio.


Complaints/order lines

0,02 %/Pos.

PharmLog Presentation

4

Reasons for founding cooperation 1992/1993 ■ Need to cut costs due to health policy directives and statutory changes ■ Aggressive pirate product competition ■ Bachward integration of wholesalers ■ Elimination of market boundaries ■ Need to rationalise

PharmLog Presentation

5

Cooperation objectives

Costs

Market position

Reduction of



Combination of market shares



Staff costs



Development of standards for



Capital costs



Transport costs



Cost control

pharmaceutical distribution 

Interchange of experience

Use of synergy effects Quality 

Lead time optimisation



Improved standards of service



Pooling of know-how

PharmLog Presentation

Flexibility 

Shared standard functions, individual special functions



Offsetting seasonal capacity fluctuations



Reduction of restrictions



Continous optimisation and development of process

6

Phases in establishment of cooperation

Implementation phase (34 months)

Target planning/ cooperation concept

Provisional contract

1

2

October 1992 3 months 2 partner

January 1993 3 months 3 partner

PharmLog Presentation

Implementation planning/ Drawing up of Cooperation contract

Implementation/ Preperations for operation

In operation

3

4

5

April 1993 12 months 5 partner

April 1994 16 months 6 partner

September 1995 6 partner

7

Cooperation concept in Germany

21.500 Pharmacies

9.200 Veterinarians

2.250 Clinics

15 Wholesalers, 112 Addresses

5.000 Others

Order

Invoice

Goods delivery

Order confirmation Order transmission PharmLog

Goods delivery Cooperation partners

PharmLog Presentation

8

Performance of standard processes [units/day]

Order and stock control



Receiving/ storage



Trucks Palletes

30 - 40 700 - 900

PharmLog Presentation

Orders Order lines

5.500 - 8.000 35.000 - 45.000

Picking





Single units 1.000.000 - 1.600.000 Original cartons 13.000 - 15.000 Single unit cartons 10.000 - 12.000 Cooled boxes 1.200 - 1.600

Shipping/ transport


Trucks 30 - 40

9

Special processes

Storage of quarantine products

Repackaging

Clinical studies

PharmLog Presentation

Batch control

built-to-order

Returns management

Qualified Person

Advertising material

Export

10

PharmLogs Logistic centre (1) - located in Bönen Ground floor High bay warehouse Hochregallager 44.000 pallet spaces 30.000 Pal.-Plätze

Receiving area 11 truck docks

Shipping area

Shipping tunnel 14 truck docks

Original carton pick/pack 1.814 products

1 cold storage Office and social 54 pallet spaces building Office, social and technical service building, returns area

Safe storage

4 cold storages

174 pallet spaces

3.800 pallet spaces 500 products

Single unit new

Upper floor Single unit carton pick/pack 6.600 products

Loop 11 and special picking

Cold storage pick/pack PharmLog Presentation

11

PharmLog service areas Order picking areas Receiving

Single Unit Originalkarton

Shipping

Storage

PharmLog Presentation

12

PharmLog Log logistic centre 2) – located in Unna Functions and tasks  Reserve storage for finished medicinal products (ambient and chilled)  Pandemic-emergency warehouse for federal states  Manufacturing based on the manufacturing licence for secondary packaging - Change leaflets, change of package size, bundeling, printing of labels, labeling, secondary packaging of bulk material, multiple arms clinical investigational studies (random list/IWRS including shipping)  Display assembling, postal information and recipient list  Advertising material storage  Export storage - Shipping of large quantities of vaccines worldwide - worldwide supply of government warehouses with finished medicinal products

PharmLog Presentation

Capacity  24.000 pallet space (ambient)  1.386 pallet space for chill products  630 qm manufacturing area

13

IT integration concept Clients Accounting

PharmLog Financial acc.

Cost and performance accounting

Stock

Sales

Production

Communication subsystem

Mail order system

Warehouse management system

Payroll Attendance control

External partners PharmLog Presentation

Radio control

Warehouse control system

Carriers

14

Cost and performance accounting requirements  Clear and complete cost and performance accounting  Activity-based costing with fully automatic registration of quantities per cost driver  Fixed costs covered by capacity reservations with commitment to purchase selected services  Automatic invoicing of joint venture partners and credit notes for services contracted out  Possibilities for detailed analysis according to cost type, process, cost driver and cost unit  Same fixed prices for all cooperation partners during the same accounting period

PharmLog Presentation

15

Capacity reservations Fixed costs covered by capacity reservations  Fixed costs are covered by charges for specific capacity allocations, independent of use.  If reserved capacity allocations are exceeded, the quantities used are charged.  An insufficient capacity reservation may be inadequate to cover needs, excessive capacity reservation incurs unnecessary fixed costs.  The reservation of free capacity is to be agreed between users of the facility.  Variable costs are covered by cost drivers which are charged according to use.  Charges are for quantities used.

PharmLog Presentation

16

Cost drivers

Order and stock control



Receiving/ storage





Order control (F+V) …

Pick/pack

Recording delivery (F+V) Recording items delivered (F+V) Spaces occupied per night (F) …







Spaces occupied per night (F) Items retrieval (F+V) Unit picking (F+V) …

Despatch/ transport




Palletising of boxes (V) Loading of consignments (F+V) …

Cost drivers: F = fixed costs / V = variable costs

PharmLog Presentation

17

Advantages for wholesalers, clinics and pharmacies

 Longer opening times for order entry for next-day delivery

 Fewer complaints  Advised and consolidated consignments facilitate receiving and stock control for wholesalers

PharmLog Presentation

18

Summary of processes

Europe-wide distribution

Production

Narcotics distribution

Built to order

Receiving/ storage

Distribution in Germany

Supply chain management

Picking

E-commerce

Distribution of Promotional material

radioactive products

Returns management

… many common – some individual PharmLog Presentation

19

Range of services offered by PharmLog ■ Handling of following product groups
Medicinal products, advertising material, clinical investigational studies
Ambient-cooled-frozen products, hazardous goods, narcotics
Human, veterinary ■ Receiver structure
Clinics, Pharmacies, wholesalers, doctors, veterinarians, governmental institutions and warehouses ■ Delivery structure
Focus on Germany and neighbouring countries like BeNeLux, Austria, etc..
Delivery of special products to end customers in Europe
Worldwide supply of government warehouses and institutions ■ Special services: manufacturing, assembling, printing invoices ■ Practical examples:
Merck Serono: Market launch of Erbitux in Europe
Novartis Pharma: High price low volume products, central storage and direct supply of the european market


Novartis Vaccines: Shipping large quantities worldwide
Bayer: Consolidation and export of large quantities
Boehringer Ingelheim: Delivery to the BeNeLux market PharmLog Presentation

20

Thank you for your attention!

PharmLog Pharma Logistik GmbH Siemensstrasse 1 | 59199 Bönen Phone: +49 2383 930-3 | Fax +49 2383 8366 | Mail: [email protected]

PharmLog Presentation

21