Medical Supply SCM

Central management services, from ingredient importation to intra-factory logistics and wholesale distribution

Under the influence of a rapidly aging society, the Japanese pharmaceutical market is expanding with increased needs being placed on domestic Medical logistics. Fuji Logitech offers comprehensive services for the operation and management of medical supply chains of Japanese and international pharmaceutical manufacturers, ranging from the ingredient importation through to intra-factory logistics, operation of regional depots, and delivery to pharmaceutical wholesalers.

Case 1: Foreign-owned pharmaceutical manufacturer I

Current status and issues

Company I had traditionally commissioned logistics operations in Japan to several companies including Fuji Logitech. However, this multi-vendor system caused problems such as variations in management levels and price systems, and a complicated administration of vendors by Company I.In addition, as Company I has promoted international M&As and business partnerships, the number of pharmaceutical SKUs handled has increased in recent years, resulting in a more complicated logistics operations and increased costs.

Our proposal

We proposed a plan in which Fuji Logitech takes full charge of all logistics operations in Japan , including (1) import of ingredients; (2) logistics within factory premises; (3) management of area warehouses and dangerous goods warehouses; and (4) transport and delivery operations. We also proposed a plan in which we dispatch a "3PL representative," who aligns Company I's different departments with partner companies in charge of actual logistics operations to promote exchange of information, as well as a functional representative for each of (1) to (4) above.

Results of reforms

As a result of Fuji Logitech taking full charge of logistics operations, the following benefits have been achieved for Company I:reduced workload for I's logistics department; streamlined deployment of workers at factories and area warehouses; more effective use of storage space; optimum allocation of delivery trucks; and a significant reduction in logistics costs.