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Westminster Pharmaceuticals

Case 4
by

Alexander Pedersen

on 3 October 2013

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Transcript of Westminster Pharmaceuticals



Case 4
Westminster Company

by Emma P, Line P, Anett L,
Bjarke N & Alexander A

Warehouse Consolidation
- Inventory carrying costs

- Customer service levels

- Order fill rates
Agenda
Foreword
Westminster Company Overview
Three Potential changes
Warehouse consolidation
Third Party vs. Private warehouse facility
Mixed shipments from consolidated distribution centers
8 Supply chain processes
Conclusion
Introduction of POS-driven systems
Reduction in order cycle time
Higher degree of customization
Potential Changes
Increasing amount of private-label competitors

Lack of customer relation

Lack of warehouse and transportation
Westminster Pharmaceuticals
Conclusion
Foreword

Background

Present

Key-persons

So what is the verdict?
Implement three alternatives

Embrace supply chain task force

Enable collaboration between all three
corporations - mixed shipments

Lower total process cost and focus on
increasing customer value
Three potential changes
Mixed shipments from consolidated distribution centers
Meet customer request for integrated deliveries from the three companies

No costs associated with organizing the consolidation

Inventory holding costs are ignored

Ability to close current distribution centers
Effect on individual company costs
Fixed costs are reduced

Customer freight is reduced

Customer request more frequent deliveries

Transfer shipment costs are reduced
Effect on performance
No remarkable impact on delivery speed and consistency
- Current number of days' transit time: 2.3 - 2.9

If inventory is increased they can improve availability measures; stock-out frequency, fill rate and orders shipped complete

Improve customers perception of performance
Factors to consider when
Key competences

Risk

Value added

Total cost
Outsource warehouse to third party facilities
Third party vs. private warehouse facility
Thank you for your attention
Feel free to ask questions!
Emma slide
8 Supply Chain Processes
Demand Planning Responsiveness
CENTRALIZE

Embracing three alternatives allows better assessment of demand and strategic design

Executive Supply Chain Task force

Mutual collaboration between all three corporations to assure maximum responsiveness to customer requirements
Customer Relationship Collaboration
DECENTRALIZE

Focus on the third alternative, customer specific requirements

Empower personnel dealing with directly with customers

Allowing better joint planning and integrated operations
Order fulfillment/Service Delivery
CENTRALIZE/DECENTRALIZE

Enable transit collaboration between three corporations
to optimize order cycles and related essential services

Involve executive supply chain task force

Focus on specific 10% customer (70% domestic sale)
Product/service development launch
CENTRALIZE

Pharmaceutical industry is of complex structure


Paramount to isolate and protect sensitive information
Reverse Logistics
DECENTRALIZE

Vast portfolio of clients

More fluent process in return and disposition of inventory

Product recall
Full transcript