Streamlining Operations with End-to-End Supply Chain Optimization in Pharmaceutical Industry: A Case Study of Nomeco
Technology Category
- Cybersecurity & Privacy - Identity & Authentication Management
- Functional Applications - Inventory Management Systems
Applicable Industries
- Pharmaceuticals
- Transportation
Applicable Functions
- Logistics & Transportation
- Warehouse & Inventory Management
Use Cases
- Inventory Management
- Picking, Sorting & Positioning
Services
- System Integration
About The Customer
Nomeco is the preferred pharmaceutical wholesaler for pharmacies, supplier for hospitals, and strategic service partner for the pharmaceutical industry in Denmark. They provide vendor managed inventory services (VMI) for approximately 350 pharmacies across Denmark and the Faero Islands through three distribution centers. With a turnover of EUR 1 billion (USD 1.07 billion), they manage over 22,000 SKUs. Nomeco’s pharmacy customers have considerable autonomy in deciding assortments, delivery schedules, delivery sizes, and other parameters in order to optimize the operations of each individual pharmacy.
The Challenge
Nomeco, a leading pharmaceutical wholesaler in Denmark, was facing challenges with its legacy replenishment and ERP systems which had become difficult to maintain and develop. The planning tools were unable to integrate with each other, leading to unnecessary manual steps throughout their process. This was particularly problematic every two weeks when prescription drug prices and pharmacy assortments needed to be updated across their network of pharmacies. Furthermore, Nomeco’s pharmacy customers have considerable autonomy in deciding assortments, delivery schedules, delivery sizes, and other parameters. This made forecasting demand and ensuring optimal inventory levels for pharmaceuticals immensely complex and time-consuming. Additionally, the unstable supply chains and frequent supplier stock-outs of prescription medications required providers to identify appropriate pharmaceutical substitutions to meet their customer demand. Nomeco’s systems were not able to support optimally in these situations, which required their planners to manually identify the ideal replacements for these medications.
The Solution
After an extensive vendor selection process, Nomeco decided to implement RELEX, a platform that provides end-to-end supply chain integration and optimizes their forecasting and replenishment processes. The implementation of the RELEX solution was heavily impacted by the COVID-19 pandemic as Nomeco had to focus their attention on business-critical activities and manage the build-up of national reserve stock during the height of the pandemic. However, since implementation, they have been able to significantly reduce manual processes, which also reduced the amount of time—and weekend overtime—spent on VMI-related tasks. Through RELEX’s advanced assortment logic, their pharmacy substitution processes are optimized to make fast, data-driven replacement decisions in the event of vendor stock-outs.
Operational Impact
Quantitative Benefit
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