The interim manager was commissioned by a pharmaceutical company to optimize its digital supply chain management. After analyzing the system, the interim manager identified 4 key areas for optimization:
- Improvement of internal processes by introducing a process house
- Improvement of request management by systematically matching new and existing suppliers based on product request profiles
- Data connection of 8 pharmaceutical wholesalers, 5 manufacturers and 2 logisticians (1.318 articles with approx. 310 orders per day)
- Hiring a person responsible for supply chain management (SCM)
15 main and 19 support processes modelled for optimization
During the analysis, the interim manager identified many sources of error, media disruptions and responsibility problems. He found particular potential for improvement in the product creation process and in cross-departmental processes. Here, approvals in new sales markets and the handling of returns and complaints were particularly important focal points. For the optimization, the interim manager modelled a total of 15 main and 19 support processes.
On this basis, the interim manager implemented the gradual integration of the data flows. First, the two logistics companies were connected to the order management system (delivery order, delivery bill, invoice printing for customers, customs processing: VAT 2 and alcohol tax). Among other things, the interim manager set up automated customs processing, which reduced the number of queries to almost zero and also ran flawlessly in other respects.
The connection of the pharmaceutical wholesalers and all suppliers presented the project with even greater challenges. Together with the team, the interim manager finally found a solution to handle batch numbers without errors, especially in the returns process. In addition, a portal for the sales force and pharmacies was successfully put online during the mandate.
Mapping cross-departmental workflows with task assignment in the ERP system
In a sub-project, the interim manager ensured that cross-departmental workflows with task assignment could be mapped in the ERP system. Although this option was available in BMD, it had not yet been used in the company. The interim manager initiated a test phase in which individual processes were initially digitized - and improved the system together with BMD Systemhaus GesmbH to create a functioning workflow management system. As a result, throughput times and the susceptibility to errors in various processes were greatly reduced.
Complex production request form integrated into the ERP system
Together with the employees in the regulatory department, the interim manager also designed a production request form. The product requirements are now well mapped in the ERP system with 121 fields. This allows the content to be assigned to existing and potential suppliers.
Sustainable improvement in key performance indicators
The interim manager was able to complete the project on time. Significant key performance indicators have been sustainably improved by optimizing the ERP system. Now 71 percent (previously 31 percent) of orders can be delivered from stock. At the same time, inventories have been reduced by 41 percent. The proportion of items from make to stock was increased from 20% to 63%.
Sales promotions due to impending expiry dates are now triggered automatically. There were no more discrepancies during the first customs inspection after the optimization.
In addition, the internal sales team was reduced from 3 people to one, who also takes on operational purchasing tasks. The new Head of SCM started work just one month before the end of the project. This made it possible to secure and further improve the results achieved in the long term.
