Doctoring Up the Supply Chain
Customer Company Size
Large Corporate
Region
- Europe
Country
- Denmark
Product
- JDA Advanced Store Replenishment
- JDA Advanced Warehouse Replenishment
Tech Stack
- ERP system
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Customer Satisfaction
- Cost Savings
- Productivity Improvements
Technology Category
- Functional Applications - Inventory Management Systems
- Functional Applications - Warehouse Management Systems (WMS)
Applicable Industries
- Pharmaceuticals
Applicable Functions
- Warehouse & Inventory Management
- Logistics & Transportation
Use Cases
- Inventory Management
- Supply Chain Visibility
Services
- System Integration
About The Customer
Nomeco A/S is Denmark’s largest pharmaceutical wholesaler with a 70 percent market share. Specializing in health logistics, Nomeco is an international center of excellence for the Danish pharmaceutical industry and part of the wholly owned subsidiary of the Finnish company Tamro – the largest distributor of pharmaceuticals in Northern Europe, Poland and the Baltic countries. Nomeco has five distribution facilities that service more than 200 pharmacies throughout Denmark. Before selecting JDA, Nomeco was creating vendor orders weekly using its ERP system. These orders were based on historical data and the team’s best estimates of what its pharmacy clients’ needs would be.
The Challenge
Pharmaceutical suppliers and retailers in Denmark operate in a tremendously complex environment. Every two weeks suppliers must submit product pricing to the government without having any knowledge of how their competitors will price similar pharmaceutical products. The government then selects among bids for the lowest-priced prescription drug, which serves as the only one that it will fully reimburse for a given two-week period. After those two weeks, the process starts all over again. One company excelling in this highly competitive market is Nomeco A/S, Denmark’s largest pharmaceutical wholesaler with a 70 percent market share. Specializing in health logistics, Nomeco is an international center of excellence for the Danish pharmaceutical industry and part of the wholly owned subsidiary of the Finnish company Tamro – the largest distributor of pharmaceuticals in Northern Europe, Poland and the Baltic countries.
The Solution
To gain better insight and control over this challenging business environment, the company turned to JDA Advanced Warehouse Replenishment and JDA Advanced Store Replenishment software. These solutions enabled the wholesaler to implement an innovative VMI program that easily integrated into its existing ERP system, as well as all of its pharmacy customers’ systems. With JDA’s solutions in place, Nomeco is able to take the pricing-code information that the government provides one week before the pricing system changes, and enter that data into its ERP system. The wholesaler uses JDA Advanced Warehouse Replenishment to create purchase orders (POs) for products from its drug manufacturer vendors. JDA Advanced Store Replenishment provides real-time insight for both Nomeco and the company’s pharmacy customers involved in the wholesaler’s VMI initiative. Nomeco is also obtaining pharmacy inventory data that can then be synched with its ERP system, allowing the company to create more accurate POs.
Operational Impact
Quantitative Benefit
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