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

PharmLog A cooperation between pharmaceutical manufacturers for the distribution of pharmaceutical products Index  Cooperation partner  Cooperatio...
27 downloads 0 Views 505KB Size
PharmLog A cooperation between pharmaceutical manufacturers for the distribution of pharmaceutical products

Index  Cooperation partner  Cooperation concept  Cooperation benchmark  Cooperation development

PharmLog Presentation


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



 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


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


Market position PharmLog PharmLog in figures (2014)


41,7 Mio. €




1,703 Mio.

 Order lines

8,130 Mio.

 Single units

297 Mio.


4,941 Mio.

 Complaints/order lines

0,02 %/Pos.

PharmLog Presentation


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


Cooperation objectives


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


Shared standard functions, individual special functions

Offsetting seasonal capacity fluctuations

Reduction of restrictions

Continous optimisation and development of process


Phases in establishment of cooperation

Implementation phase (34 months)

Target planning/ cooperation concept

Provisional contract



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




April 1993 12 months 5 partner

April 1994 16 months 6 partner

September 1995 6 partner


Cooperation concept in Germany

21.500 Pharmacies

9.200 Veterinarians

2.250 Clinics

15 Wholesalers, 112 Addresses

5.000 Others



Goods delivery

Order confirmation Order transmission PharmLog

Goods delivery Cooperation partners

PharmLog Presentation


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


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


Special processes

Storage of quarantine products


Clinical studies

PharmLog Presentation

Batch control


Returns management

Qualified Person

Advertising material



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


PharmLog service areas Order picking areas Receiving

Single Unit Originalkarton



PharmLog Presentation


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


IT integration concept Clients Accounting

PharmLog Financial acc.

Cost and performance accounting




Communication subsystem

Mail order system

Warehouse management system

Payroll Attendance control

External partners PharmLog Presentation

Radio control

Warehouse control system



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


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


Cost drivers

Order and stock control  

Receiving/ storage    

Order control (F+V) …


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


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


Summary of processes

Europe-wide distribution


Narcotics distribution

Built to order

Receiving/ storage

Distribution in Germany

Supply chain management



Distribution of Promotional material

radioactive products

Returns management

… many common – some individual PharmLog Presentation


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


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


Suggest Documents