Distribution network assessment CEE

April 6, 2016 508

Description

The pharmaceutical wholesale business forms the nucleus of the Phoenix Group, but Phoenix also operates as pre-wholesaler and retailer and owns pharmacies. Phoenix is operating in almost all European countries, is market leader in the CEE region and generates an annual turnover of 21 billion Euro with it’s 24.000 employees.



Opportunities

Traditionally the Phoenix entities in the CEE countries are mostly working independently, both in their operations as well as in developing relationship with (multinational) customers/manufacturers. Although Phoenix recognizes the added value of such a local set-up, the objective is the create solutions for the CEE region by defining a regional distribution structure that can support the international manufacturers.



Solution


  • A model is developed that calculates the supply chain cost impact for a range of manufacturer’s profiles in various scenario’s (direct, central, regional, local stock).

  • Sensitivity analysis are performed to gain insight in the impact of business or operational variations on the preferred supply chain network for the CEE countries.

  • Variables that have been investigated are the value of the products, the annual volume, the number of SKU’s, required lead times and others.

  • The recommended directions to be developed were based on costs, VAT & customs duties and other qualitative considerations.




Benefits

  • Phoenix now has a clear understanding on what is the best way to support her clients

  • Clearly the best supply chain solution differs per customer, ‘one size does not fit all’

  • Phoenix has better understanding of the supply chain mechanisms and associated cost-drivers. This will enable Phoenix to tailor their proposition per customer

  • The conclusions will act as a starting point to adapt the organization in the CEE region to align with the cross-border supply chain model



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