Case Study

Major Pharmaceutical Manufacturer Saves 33% in Expedited Shipment Spending

ParkourSC’s Operational Platform Dramatically reduced their Transportation Spending and Spoilage

This pharmaceutical manufacturer has shown the digitalized future of a fully connected, automated, and optimized supply chain. Our partnership continues to grow as they find additional cost-saving and incremental revenue opportunities with ParkourSC.”

Mahesh Veerina,
CEO, ParkourSC

Reducing Global Transport Spending

This global healthcare business has facilities and partners in 80 countries and serves patients over 135 countries. Hence, their supply chain is complex and spans numerous types of carriers. What they noticed was that they were relying too much on expedited shipments and packages that were costing at least 50% more than standard transport options. They saw these huge transportation expedited costs with moving products between continents and needed to reign in these costs.

They worked with ParkourSC to pull data from all these disconnected systems and carriers to see the flow and spending patterns to optimize lanes, routes, and carriers to reduce expedited shipments and fees. Find the best method, carrier, and route to ship from Latin America to the US, for example. This all-in-one view allowed this company to lower shipment costs dramatically.

Save Profits from Less Spoilage

In addition to adding logistics information to ParkourSC, they also added product data and quality monitoring to their packages and shipments. They can monitor temperature and dwell time outside of refrigeration in real-time. These sensors monitor location in real-time, so they know precisely where their medicines are in the supply chain. Because much of their product has an 18-24 month shelf life, monitoring the product from production to final destination was critical for patient health and quality compliance. With ParkourSC, they could see each lot, shipment, or package, its location, temperature, dwell time, and other product-related factors like manufacture date, product facility, or other lot characteristics in our platform. This full visibility allowed them to find and ship by FIFO to prevent spoilage and immediately act on any potential temperature excursion to save the lot or shipment.

33%

savings from reducing expedited shipments

80+

global sites tracked in platform

90%

of product supply chain streams automated

Optimize the End-to-End Supply Chain

ParkourSC was not just used for in-transit tracking; they also fed in their order and demand planning, inventory, and fulfillment data to get full end-to-end visibility of their entire supply chain. In addition, sensors provided real-time signals from their production and warehousing functions. Using ParkourSC, they could better balance supply and demand, optimize lot sizes, and reduce carrying costs for storage, especially more expensive cold storage. And because of this visibility, when there were shortages, they could better allocate limited stock to priority customers.

Confidential Pharmaceutical Manufacturer

Industry

Pharmaceuticals and Health Treatments

This global healthcare company focuses on women’s health and develops products for reproductive health, heart disease, dermatology, allergies, and asthma treatment.of temperature-sensitive products for the life sciences industry

Segment the Supply Chain for Automation

As they were implementing ParkourSC’s digital twin platform, they found they were spending too much time and resources on planning, managing and solving supply chain issues on low-profit products. Executives sought to shift the focus of the expert supply chain, planning, and operational teams so that more time is allocated to high-growth and high-profit product streams.

About 10% of their product portfolio provides 80% of the overall profit. So they are starting to use ParkourSC’s workflow engine to create business rules to handle and resolve issues with the lower-profit product streams while their team focuses on the higher-profit product streams.

These automated workflows can send alerts to relevant departments, 3PLs, 4PLs, warehouses, distributors, and carriers about issues that they can solve without any human intervention. Instead of having a person see the issue, try to get a hold of the third-party company to have them fix it and then call back to see if the issue was fixed. With the ParkourSC operations platform, the information is all in the dashboard for the entire supply chain to view and act upon. Visibility to all creates an immediate bias for action.