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Evaluation need for a EU hub

April 06, 2016 2327 Views

ferring-logoDescription
Ferring is a research-driven biopharmaceutical company that identifies, develops, manufactures and markets innovative products that improve the quality of life. Ferring has offices in over 40 countries. From its origins as a distinctly Scandinavian company, Ferring has developed into a global  business player with operating units in most important pharmaceutical markets.

Opportunities
Ferring is implementing a centralized concept for secondary packaging for all production sites. The centralized inventory, secondary packaging and distribution functions will be based & managed at St. Prex in Switzerland. Client was committed to evaluate possible impact on business and identify the optimal distribution strategy to National Marketing & Sales companies and 3rd party customers to gain maximum benefits and decrease operational risks.

Solution
A detailed analysis of the existing supply chain set-up and future model was conducted. This provided a transparent overview of the current SC footprint and business processes, highlighting critical areas and potential risks. Two main solutions were presented to Ferring:

  • Centralized distribution from St. Prex to all markets
  • Using an EU-based consolidation Hub for distribution to EU markets

Center of Gravity and Distribution Network studies were performed for an optimal EU-hub location.
A cost calculation has been performed for both scenarios and compared with VAT/Fiscal models to optimize the benefits and reduce the risks.

Benefits

  • Expertise in the pharma industry along with integrated approach providing the full picture of impact on organization and critical areas to support the strategic decision making process
  • Optimal distribution model with significant decrease of overall cost and secured VAT set-up
  • Expertise & support during implementation of the chosen distribution scenario.