Peter Trotter

1
Worlds Best PracticePharmaceutical Logistics
Solutions

• Peter Trotter
• Regional Marketing Director, Asia Pacific

2
The only thing that is certain is that change is
constant
The Equator
3
Agenda

• Global Trends in Pharmaceutical Logistics
• Pharmaceutical Logistics System Drivers
• Order Fulfilment Technology Trends
• Best Practice Case Studies
• Australian Pharmaceutical Industries
• Beijing Pharmaceutical
• The Way Forward

4
Agenda

• Global Trends in Pharmaceutical Logistics
• Pharmaceutical Logistics System Drivers
• Order Fulfilment Technology Trends
• Best Practice Case Studies
• Australian Pharmaceutical Industries
• Beijing Pharmaceutical
• The Way Forward

5
Rapid Growth in the Global Pharmaceutical Market
CAGR
10
7
2.5
13
Source IMS, EIU, SLA analysis

• Massive Pharmaceutical markets in USA and Europe
  continue to accelerate
• China will rival Japan as the third largest
  pharmaceutical market by 2020

6
Global Trends impact Pharmaceutical Distribution

• Some Recent Trends..
• Deregulation of OTC pharmaceuticals allows
  retailers to enter market
• Product proliferation due to dramatic growth in
  generic pharmaceuticals
• Increasing cost of retail shelf space drives
  customers to demand smaller more frequent
  deliveries

• have Powerful Implications
• Wholesalers will raise the bar
• By offering value added services
• Faster Response Time
• Delivery Reliability
• Greater Accuracy
• Lot and Batch Tracking
• Quality Control
• And these services will be provided at a LOWER
  COST than ever before

7
Strategic Drivers define the Logistics Solution
in Pharmaceutical Wholesaling
8
Agenda

• Global Trends in Pharmaceutical Logistics
• Pharmaceutical Logistics System Drivers
• Order Fulfilment Technology Trends
• Best Practice Case Study
• Australian Pharmaceutical Industries
• Beijing Pharmaceutical
• The Way Forward

9
Order Fulfilment Accounts for 33 of Supply Chain
Costs
Transportation Costs
39
Logistics Systems Costs
61
? 4 Administration ? 24 Inventory Carrying
Cost ? 33 Warehousing Order Fulfilment
The fastest growing cost component of Warehousing
Order Fulfilment is labour cost.even in
developing economies
Source SAIC, World Bank, D. Hummels PhD Time as
a Trade Barrier
10
Advanced Order Fulfilment System Technologies

• Logistics IT
• Order Fulfilment System
• Picking Technologies
• Voice Picking
• Pick-to-Light
• RF Pick Cart
• Carousels
• A-Frames
• Order Picking Robots
• Material Flow Technologies
• Conveying, Zone Skipping and Sorting

11
Real Time Order Management and Material Flow
ERP
WMS
12
Picking Technologies Voice Picking

• New Wireless technology
• Provides good Productivity across SKU range
• Hands-free, Eyes-free Picking
• Multiple Orders per Zone enables High Throughput
• Cost is Proportional to the Number of Pickers
• Highly Flexible
• And highly Accurate

13
Voice Acceptance
14
Picking Technologies Pick-to-Light

• An older, hard wired technology with greatly
  enhanced functionality
• Ideal for for Fast Moving Items
• Exceptional Productivity
• Hands-free, Eyes-free Picking
• Highly Accurate
• Real-time Management Updates
• Cost is Proportional to the Number of SKUs under
  Lights

15
(No Transcript)
16
Picking Technologies RF enabled Cluster Picking

• Combines RF and Pick to Light to enable cluster
  picking.
• Improves Productivity for Slow Moving items
• Multiple orders picked in single Pass of stock
  locations
• Real-time Updates
• Flexible in Dealing with Changing Workloads

17
Picking Technologies Vertical Carousel

• Goods to the man technology
• Effective Storage for
• Temperature Controlled SKUs
• Medium Movers
• Clean Storage environment
• Excellent Use of Headroom
• Combine with PTL or Voice for Productivity
  Accuracy
• Large Incremental Investment

18
Picking Technologies A-Frame

• Fully Automated Picking
• Excellent Productivity and Throughput
• Suited to Very Fast Moving Items
• Only Applies to SKUs with Suitable Pack-types
• Large Incremental Investment

19
(No Transcript)
20
Picking Technologies Picking and Replenishment
Robots

• Fully Automated Picking
• Suited to Medium Moving Items
• Multiple grips to handle variety of container
  shapes
• Large Incremental Investment

21
(No Transcript)
22
Material Flow Conveying and Zone Skipping
23
(No Transcript)
24
Material Flow Sortation Despatch

• Linear and Recirculating Sorting Technology
• Complete range from low to high throughput
• Sophisticated controls technology
• Full integration with Material Flow software
• Facilitates Batch Picking Cross Docking

25
(No Transcript)
26
Agenda

• Global Trends in Pharmaceutical Logistics
• Pharmaceutical Logistics System Drivers
• Order Fulfilment Technology Trends
• Best Practice Case Studies
• Australian Pharmaceutical Industries
• Beijing Pharmaceutical
• The Way Forward

27
API Best Practice Logistics System
28
(No Transcript)
29
PickDirector
30
Integration
31
Beijing Pharmaceutical Best Practice in China
32
BJP Case Study
33
Agenda

• Global Trends in Pharmaceutical Logistics
• Pharmaceutical Logistics System Drivers
• Order Fulfilment Technology Trends
• Best Practice Case Studies
• Australian Pharmaceutical Industries
• Beijing Pharmaceutical
• The Way Forward

34
New Distribution Centre Typical Cost Profile
Initial Cost of System Elements
35
New Distribution Centre Key Success Factors
Influence on System Success

• Others
• System Design
• Software Technology
• Project Management
• Integration Management
• Operating Methods
• Trained Staff
• Service Support

36
New Distribution Centre Developing the Right
Solution

• Market application knowledge
• Access to Worlds Best Practice
• Focus on best life-cycle cost solution, not just
  equipment
• A Partnership Approach

37
Worlds Best PracticePharmaceutical Logistics
Solutions

• Peter Trotter
• Regional Marketing Director, Asia Pacific