Case study: Pharmashare, the biggest pharmaceutical website in Brazil, addopted a new system and reduced costs.

Less legislation barriers and rise on productivity

How Pharmashare, the biggest pharmaceutical website in Brazil, adopted a new system and transformed the supply chain.

Innovation in procurement and its processes in supply chain was the main theme of a business case presented on the last day of International Supply Chain Conference in Rio de Janeiro, hosted by ILOS. During the event, one of the cases that caught attention was presented by DHL, also award winner of ILOS Prize 2014, celebrating the best logistics operators of Brazil.

Alex Tosetto, IT Director DHL South America and Flávio Augusto Silva, Pharmashare Manager talked about the project and said how the technology was applied in the processes to reduce Pharmashare’s costs and give leverage to the company and its services.

The business case shows the WMS implementation on Pharmashare, the biggest pharmaceutical website in Brazil, with high complexity operations.

How the solution created by JDA gives to Pharmashare a competitive system?

DHL have 4 warehouses and 25 clients. Each client has a specific particularity. The main goal about the solution JDA created for us was the standardization, they offered us a solution with processes so diverse that we could cluster all our clients in the same system, and now we don’t need 23 different solutions to attend each client’s specificity.

What leverage the solution provides to your supply chain?

The leverage is quality, traceability and warehouse total costs reduced in 17%.

The system we created in Brazil is been studied by DHL USA and Europe teams. Some processes developed in the system during the implementation are being chosen as case studies of international groups who want to share our solutions. It’s important to remark we can give other countries information, but some ANVISA’s requirements only happens in Brazil, said Alex Tosetto, DHL IT Director at Latin America.

How was the co-creation process between DHL and JDA to improve the solution?

On one hand JDA provides the system and adapts the information to attend pharmaceutical market needs, allowing some customization in the process. Doing that, some requirements the system wouldn’t predict in a first place were added by us as improvements, such as: better temperature control, customized bar codes (this last one is being studied by JDA international). On the other hand DHL does the operation, gives IT support and the ‘labor’ to the implementation (operation, people and expedition are done by DHL), remarks André Tosetto, DHL IT Director.

Were there barriers to adopt the new model?

“Yes. Some companies used to have a completely different system and a family management. When we changed the system we also created a Committee in order to organize Communication Campaigns engaging people to adopt the new system”, said Flávio Augusto da Silva, Pharmashare Manager.

Did the collaborators notice advances in their activities using the new model?

“Yes. We are operating in a market that has a lot of information and criteria about products. So all the processes were used to be controlled on several documents (where is the product, where you moved the product), Today, all the employees has the data collected on their hands; once they have typed the information it’s all collected by our system, and we know what happened in the chain”, said Augusto da Silva, Pharmashare executive.

Where there any improvements on the inventory?

“Certainly we got speed on our inventories processes, the activity we used to finish in three days, now it’s done in five hours, with better information accuracy”, concluded Flávio Augusto da Silva, Pharmashare Manager.

Do you think the partnership between suppliers can deliver innovation?

“The partnership between DHL and JDA it’s beneficial to both companies and also to our clients. As we said before, when we realize our customer have specific needs, we ask JDA to change the system for us. And JDA use that optimization to create a new feature for us, therefore, we are helping our partner to develop their own system because we know them deeply. Additionally, we are delivering better service to our clients as a result”, said Flávio Augusto da Silva, Pharmashare Manager.

About innovation and strategic partnerships, Todd Johnson, JDA Global VP, said: “we accept our partner’s challenges trying to offer them the expertise we have in several solutions, for instance, 3PL. We are willing to attend different challenges providing different solutions, that’s why we have standard solutions (core solutions) and many others in order to attend clients with complex aims, such as: increase market share, expand company activities, or adopt a new trend for their market.”