Making it difficult to say no to wholesale

1
Making it difficult to say no to wholesale!!!

• Steve Anderson
• AAH Operations Director

2
Agenda

• Update from last year
• Developments

3
Core Service

• Wholesale distribution of Pharmaceutical
  products services to Pharmacy, Hospitals
  Dispensing Doctors
• Shared User Distribution
• gt400 manufacturers suppliers to service over
  9,000 customer accounts
• Access to gt20,000 products on one delivery
  vehicle
• Economies of Scope
• Order Taking
• Account management
• Debt collection
• Product file management
• Specialist Distribution
• Cold Chain, Controlled Drugs, Flammables
  Cyto-toxics
• Returns recalls

making sure the right medicine is in the right
place at the right time
4
AAH National Network
1. Aberdeen 2. Glasgow 3. Belfast 4.
Gateshead 5. Leeds 6. Warrington 7.
Nexus 8. Weedon 9. Swansea 10. Bristol 11.
Ruislip 12. Romford 13. Paignton 14.
Southampton 15. Bexhill 16. Wilkinsons
5
Key statistics Economies of scale and scope

• Over 9,000 individual customers accounts
• 96 of retail orders received electronically
• 130 call centre staff supporting customer
  requirements
• 85,000 Contract prices managed
• 400,000 customer orders per week
• 4,000,000 individual order lines per week
• 10,000,000 items per week
• 100,000 deliveries per week
• Product range in excess of 20,000
• 125,000 individual lines returned per week
• Collection of gt200m in debt per month

6
Electronic Proof of Delivery Update

• Live from March 07
• 80 of all deliveries via EPOD 100 yr end
• 1st to market in Pharmaceutical Wholesale
• Will be used across whole Celesio group
• Can track position of every vehicle
• 100 exclusive rights to development
• Provides another step forwards in increasing
  supply chain visibility
• Future developments already in pipeline

7
Cold Chain Update
An excellent step forwards but not the final
solution
8
Ensuring Cold Chain Compliance

• Tracks all movements of vehicle
• Full storage monitoring during transportation
• Alarms to multiple users
• 24/7 data capture
• Data sharing

Currently being trialled in 8 vehicles
9
Barcode Picking Development

• Next Generation Hardware
• Significantly lighter for user 350gms
• Voice Capability
• Continues to improve quality
• National upgrade of our RF LAN
• Quicker for users
• Access to new technology
• 12 product with no barcode

10
Last years supplier symposium
11
Improving Customer service

• Hospital Account Personal Identification Numbers
• Majority of accounts are number withheld so we
  cant identify
• 5 Digit PIN given to each element of a hospital
  account
• PIN number used to identify account in advance
  and pop a screen
• Operator knows not only which account but which
  part of the account is calling e.g. Pharmacy
  stores, Diet Kitchen etc.
• No need for 13 digit account number to be
  verified
• No chance of orders being made under wrong
  account
• Been trialling in Leeds area with excellent
  feedback
• Available to all accounts this year

12
Continuing to develop our capability

• Significant improvement plans for 2008
• Aberdeen
• Northwest
• London
• Call centre technology investment
• Links to transport for improved customer
  information on product
• Plans to improve invoicing and reverse logistics
• Datamatrix RF trials currently running in the
  group
• Commitment to keep batch tracking at the head of
  our agenda
• Working with automation suppliers

13
Summary

• Highly capable in the twice daily high volume
  arena
• Continued investment in technologies that improve
  quality
• Focussed on developing models that facilitate
  specialised distribution
• Recognition that RF Data matrix technologies
  may provide positive steps forward for our
  industry
• Continuous improvement will remain at our core