YLUK Healthcare Case Study

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INSIGHT INTO ACTION

CASE STUDY: HEALTHCARE

A CONTROL TOWER BRINGS PATIENTS TO THE HEART OF AN OPERATION Delivering industry leading performance levels through improved planning and visibility across a European healthcare supply chain

INSIGHT INTO ACTION

CASE STUDY: HEALTHCARE

Through their focus on science and innovation, our customer has become one of the leading global healthcare organisations, and their advancements in biopharmaceuticals is set to revolutionise the healthcare industry. Their commitment to a patient’s well-being is at the heart of everything they do. They invest significantly into Research & Development (R&D) to deliver life-changing medicines across the globe. However, with increasing regulation, expiring patents and the rise of e-commerce counterfeits, our customer needed to refocus with an emphasis on creating a leaner operation. To achieve this, our customer needed a healthcare logistics specialist focused on quality, reliability and value, that understood the requirements of the market, the importance of the end-patient and could deliver to their own high standards.

SUPPLY CHAIN MANAGEMENT

SOLUTIONS ENGINEERING

INFORMATION TECHNOLOGY

INSIGHT INTO ACTION

CASE STUDY: HEALTHCARE

OUR CUSTOMER’S CHALLENGE

Our customer always has patients’ wellbeing at the heart of everything they do, pushing the boundaries of science to deliver life-changing medicines all over the globe. They have significantly invested in Research & Development

sourcing alternative solutions will be extremely time sensitive and have a higher associated cost.

an already highly regulated supply chain. Online platforms have also led to the speed and scale that threats can be escalated and acted upon to be at its highest in history, with organised criminal groups exploiting technology to aid illicit schemes and further their global reach. This is amongst growing political unrest causing a rise of illegal immigration at international ports. With these increased tensions, the demand on the supply chain to deliver is higher than ever. Working capital is tied into R&D, whilst declining sales from mature products means funds must be sourced from elsewhere in the business. This has led to a refocus on operations, with an emphasis to create a leaner model - with logistics, control and inventory at the heart.

Despite the growing pressure on our customer’s revenue, some government agencies are enforcing price ceilings – driving them to source alternative channels to cover their costs. This is alongside patents expiring on several of their most prevalent products allowing generics, benefiting from a lower cost base, to enter the market at reduced prices. Alongside this, the rise of e-commerce has led to more readily available counterfeit pharmaceuticals in the marketplace, risking patients’ wellbeing and the industry’s integrity. This has led to the Falsified Medicines Directive, enforcing full end- to-end traceability and tamper evident features on packaging, adding yet further complexity to

(R&D), with an industry shift towards the advancement of biopharmaceuticals.

Yet, the growing complexity of regulatory compliance has made it increasingly challenging to bring new pharmaceuticals to market. The development of biologics also adds further intricacies, with limited production capacity and stricter temperature requirements throughout the supply chain. Furthermore, failure to comply with these will risk quality release issues - restricting supply and increasing exposure to additional supply challenges and costs. Especially as

INSIGHT INTO ACTION

CASE STUDY: HEALTHCARE

THE BENEFITS

Through our Control Tower solution, we have brought complete visibility to our customer’s supply chain. Offering them accurate and real- time data across all routes, regions and modes. We identify opportunities for consolidation and efficiencies whilst always retaining the high levels of service expected within the healthcare industry. Through our extensive portfolio of healthcare customers, we have developed the largest GDP tracked asset light network in Europe. This provides our customer with access to

thousands of vehicles, across 90 specialised hauliers and partners, at economical rates and a guaranteed high service level. Consolidating information in one central database improves visibility across the entire operation. This enables more efficient planning, identifies key trends and offers a single point of view at every stage of the supply chain. By analysing our customer’s lead times, we are able to facilitate the most cost-effective transportation mode and have since transferred over 3,000 shipments from air freight to sea freight - generating cost savings of over 32% in just one year. Visibility across multiple regions and routes across Europe provides synergy opportunities which, last year, identified saving opportunities of over £1mn. Consolidating orders from local sites results in fewer trips and increases load fill, which has reduced their C02 emissions by up to 7%.

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YUSEN’S CONTROL TOWER HAS GIVEN US BETTER VISIBILITY OF OUR SHIPMENTS, ALLOWING US TO TAKE MORE CONTROL OF OUR STOCK

INSIGHT INTO ACTION

CASE STUDY: HEALTHCARE

Through integration with our full track and trace software, VISIONi, shipments can be GPS tracked and temperature monitored at every stage. Constant monitoring identifies any potential issues in real-time. This allows mitigation strategies to be immediately implemented - addressing and resolving the cause of the problem as quickly as possible. Routes are meticulously planned according to the latest regional and global security intelligence, and any deviations to routes are alerted of immediately with a clear process of escalation. High security features across our vehicle fleet is coupled with intensive driver training, to further minimise the risk of cargo theft and safeguard our drivers. Through our significant investments in security measures, 99.99% of our shipments are completed without issue. With stolen

pharmaceuticals often re-entering the legal market, the risks of compromised goods are passed on to end patients unknowingly. For our customer, minimising the number of freight issues has resulted in immediate benefits by reducing product losses. This has, in turn, increased the overall on time in full (OTIF) performance of the operation, which is now at an industry leading 99.5%. This has been achieved by improving control of shipment movements through enhanced visibility, providing accurate and real-time data for better informed decisions and ongoing improvement strategies. Vehicle dwell time has been significantly reduced at both the point of collection and delivery. Pre-emptive alerts keep shipments on track and enable schedules to be pre-planned

around arrival times. By keeping shipments to schedule, the flow of goods is maintained and delays are minimised. This has contributed to our outstanding service level that has delivered 99.9% of cold-chain shipments with no temperature deviations. Through proactive monitoring and analysing, potential deviations are identified and mitigated before they reach the point of failure - upholding the integrity of both the goods and our customer’s brand. Through our Control Tower solution, we have brought complete transparency to our customer’s end-to-end supply chain resulting in improved efficiencies, higher delivery performances and fewer product losses. Giving our customer the knowledge that end patients’ welfare is always at the heart of their operation.

BENEFITS AT A GLANCE

99.99% of shipments have no temperature deviations

99.5% of deliveries complete on time & in full

99.99% of shipments complete without issue

7% reduction in C02 emissions

£2m of savings in transportation

INSIGHT INTO ACTION

CASE STUDY: HEALTHCARE

OUR SOLUTION

We implemented our dedicated Regional Healthcare Control Towers to offer full end-to-end visibility across our customer’s entire supply chain. By providing accurate and real-time data, inventory control has been improved and our customer can make more informed strategic and tactical decisions around their supply chain and freight movements. Using our global best practices, we standardised GDP compliant procedures and processes across their entire operation so that all suppliers are measured against the same criteria throughout. This is supported by our strong supplier management framework consisting of a rigorous partner selection and audit process that ensures all suppliers operate and adhere to Yusen Logistics’ high quality standards. We then ensure the highest service is delivered through ongoing performance monitoring and our service level agreements (SLA). Alongside these set quality levels, the agreed security standards within our SLA further safeguard our customers’ pharmaceuticals at every stage of the

supply chain. Our network consists of GDP compliant vehicles with the latest security features, whilst our detailed recruitment and talent development processes are supported with ongoing security training to help ensure our people remain to be our best asset. We combine this with shared data intelligence, which is core to our process controlled distribution. This process consists of complete route risk assessments on all lanes handled, applying a standardised and thorough approach to speed up the operation and effectively mitigate risk. We ensure all our customer’s shipments adhere to the Green Light process, in compliance with the Global Trade Compliance procedures and other essential legalised documents necessary for Customs compliance. This allows us to always plan the safest, most efficient routes whilst minimising delays to the end-patient. Routes are then monitored, with live position feeds using GPS tracking to alert of any unanticipated deviations to the predesignated route and stops. This is together with constant temperature monitoring that guarantees the

condition of the shipment on arrival.

INSIGHT INTO ACTION

CASE STUDY: HEALTHCARE

KPIs focused on GDP compliance and transit time are linked with suppliers’ performance to provide analytical and measurable data. Deliveries are scheduled using live data to improve response times, and more effectively manage and implement contingencies at supplier level across all modes of transport. This allows a higher degree of flexibility within the supply chain, increasing our customer’s adaptability whilst achieving improved productivity by dovetailing demand and production schedules to best support asset plans. We have made every stage of our customer’s international supply chain visible, to provide data access across both local and global regions. This has provided consolidation opportunities within both our customer’s own operation and throughout the Yusen healthcare network, with cross-docking

at strategic GDP compliant locations for onward distribution. By optimising lower volume shipments, such as biopharmaceuticals, through maximised load-fills we have reduced transportation costs and improved efficiencies. Through supply chain collaboration, all data can be accessed and viewed on a single secure online platform from anywhere in the world, including quality compliance data, stock data, trends, transportation costs, unit costs, and KPIs. This brings closer alignment of stock supply and demand to create the optimal solution, and identifies further opportunities for synergies and optimisation. Reductions in loss, damage and waste have provided real cost savings for our customer. This is alongside a dynamic supply chain execution, improving our customer’s capability to respond and

adapt to potential disruptions.

Through our solution, we facilite data driven decisions to deliver the most cost-effective optimised solution whilst always maintaining supply. Above all, we offer our customer a bespoke service specifically tailored for a healthcare client, rather than a suite of generic products, always keeping the end-patient at the heart of the operation.

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ACCESS TO ACCURATE AND REAL-TIME DATA ENABLES US TO TAKE INFORMED STRATEGIC DECISIONS ABOUT OUR FREIGHT MOVEMENTS. BY PROVIDING A SINGLE VIEW POINT ACROSS MULTIPLE MODES, REGIONS AND ROUTES, WE ALWAYS KNOW EXACTLY WHERE OUR SHIPMENTS ARE.

CONTACT DETAILS

UK +44(0) 1604 748500 Email: insight@uk.yusen-logistics.com Twitter: @yusenlogisticse

LinkedIn: yusenlogisticseurope Visit: www.yusen-logistics.com

Written by Ellena Austin, Marketing Executive

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