IBS Pharma The supply chain solution for pharmaceutical wholesalers and distributors

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1 IBS Pharma The supply chain solution for pharmaceutical wholesalers and distributors

2 Fast, safe, effective like the pharmaceutical products you deliver IBS PHARMA is the supply chain solution software, hardware and services that is developed especially for pharmaceutical wholesale and healthcare products distribution, pre-wholesale and services. It s the right IT prescription for business partners all along the pharma supply chain. IBS PHARMA improves processes and reduces costs for pharmaceutical and healthcare wholesalers. It links the entire supply chain of wholesalers, pre-wholesalers and distributors with pharmacies, hospitals and other healthcare distribution points. Pharma wholesalers and distributors need an IT solution that: Processes large order volumes during peak hours Fulfils high service levels and quality requirements Controls inventory and purchasing to allow major reductions in tied-up capital Helps to ensure safe, quality products that conform to regulations Offers flexible, quick and accurate billing Delivers a reliable and timely return on your IT investment. IBS PHARMA fills the prescription with: High-volume order processing that is automated, accurate and fast, with immediate response availability Sales order and delivery features that help you fulfil orders quickly, minimise errors, cut leadtimes and raise service levels Automatic warehouse management and purchasing to control inventory, optimise warehouse throughput and speed up routines Product tracking and tracing, narcotics and hazardous material handling, and on-time shipping documentation Flexible invoicing on demand, with pricing that meets the needs of your financial operation and customers Analysis and reporting to help improve your business by measuring Key Performance Indicators (KPIs), business partner performance and ROI. 2

3 An industry-specific solution IBS PHARMA is an IT solution that is built with industry expertise. IBS is the only international supply chain software developer associated with both IFPW (International Federation of Pharmaceutical Wholesalers) and GIRP (the European Association of Pharmaceutical Wholesalers). Pharma distribution faces challenges and changes Pharmaceutical wholesalers and distributors face challenging transaction volumes which require optimisation of warehouse use, order entry and picking, and delivery efficiency. The results are reduced overhead costs and lead-times, along with less costly returns and happy customers. An industry that operates on already thin margins needs improved solutions. IBS PHARMA optimises complex supply chains and business processes, and makes it possible to: Reduce operational costs Protect net margins and total distribution margins React quickly to changing markets Respond with confidence to changing customer profiles Meet dynamic demands for services Improve customer service. Details will show you how IBS PHARMA will make a difference for your pharma wholesale business. 3

4 Sales order management Orders are the source of the pharma distribution business. IBS PHARMA makes sales order management quick and accurate with automatic, intuitive functionality. Order entry is fully integrated with warehousing, logistics and invoicing to help you deliver the right products and receive fast payment. IBS PHARMA ensures a strong and quick pulse for sales order management. IBS PHARMA is built for speed, accuracy and flexibility when it comes to order entry and fulfilment down to the crucial details. Here is just one example: pharmaceutical product names are often complicated and hard to spell. IBS PHARMA automatically corrects misspelled items. entry, including: Fully automated, electronic order entry with immediate availability confirmation Speedy call centre order entry with phonetic correction of item names Order entry via the Internet or palm devices Integrated EDI communications Online route information and confirmation Support for back-to-back orders Automatic wake-up calls to remind customers to order Automatic call plans Deep-level support for product authorisation and restricted sales Automatic suggestions for replacements, alternative items and generics Fair share handling for items in short supply Sets and structures to link items for a specific order Ship and Debit discounts Narcotics, antibiotics and dangerous goods handling with complete reporting, documenta tion and narcotics database management Credit limit control Multilingual data, documents and user interface Multiple currency handling Multi-company functionality Time stamps for changes in master data Business partner structure to organise customer information. 4 IBS PHARMA sales order management provides you with automated tools that streamline order

5 Invoicing and financials Today s pharma industry demands fast invoicing to speed up cash-to-cash cycles and improve business revenues. IBS PHARMA provides on-demand invoicing based on real-time, accurate information. Revitalise your business health with automatic, integrated invoicing and accounting from IBS PHARMA. Automatic, electronic invoicing with IBS PHARMA can compress billing cycles and minimise manual errors with on-demand billing that handles all payment schedules. IBS PHARMA s flexibility also benefits your customers with accurate statements and automatically calculated pricing and discounts. The benefits extend to fast communication with and EDI. IBS PHARMA invoicing is complemented by a powerful finance system that is geared to the international market. Invoicing and financials are fully integrated into the IBS PHARMA solution via IBS INTEGRATOR. All transactions reflect real-time information from all installed modules, including distribution. Individual customer prices are available at order entry time. IBS PHARMA invoicing functionality includes: On-demand invoicing for immediate, split or periodic billing Pricing and discount flexibility - Individual price calculations - Sales price and discount methods - Pre-defined values - Mixed product The IBS PHARMA financial solution gives you complete financial control, including: Complete accounting with A/R, A/P, GL Cost accounting methods Consolidated accounting for groups and companies - International asset control - Coverage of national accounting regulations - Creation and follow-up of budgets Online view of financial information with drill-down to transaction level Intrastat trade statistics support User-defined multiple account structure, by account, product or customer etc. number. bonus conditions - Activity based pricing - Quantitydependent pricing - Price lists - Order value discounts Repayments Contract handling Business Partner organisation of customer sales pricing, credit analysis and statistics. IBS turn-key solution minimises the project risk for us, and I look forward to the significant efficiency benefits and improved functionality that the new system will provide. Elmo de Alwis, Managing Director, Sigma Company 5

6 Warehouse management Thousands of items, with no time to waste in storing, processing and delivering them: that s business as usual for pharma wholesalers. IBS PHARMA is based on IBS enterprise software, a worldleading supply chain solution built to move and manage high volumes of items with speed and accuracy. IBS PHARMA makes it possible to reduce warehouse inventory, paperwork and total costs. IBS PHARMA streamlines the reception, storage and picking of thousands of sales order lines. RF and barcode support give you real-time inventory control and minimise paperwork. The solution offers complete support for interfaces to A- frames, picking robots, conveyors and automats. Warehouse processes run at higher speeds with greater accuracy and lower costs. Pharma warehousing must also meet strict regulations for narcotics and hazardous goods. IBS PHARMA has built-in compliance for warehouse location, documentation and other safety and integrity procedures. Tracking and traceability by item code, batch or serial number help to ensure the safety and integrity of goods along the supply chain. IBS PHARMA warehouse management includes support for: RF scanning, bar-code support and warehouse orders for the paperless warehouse Automatic stock movement Online interfaces to A-frames, picking robots, conveyor systems and automats I-point control for merging picking documents with containers and for warehouse workload control Batch control of goods by item number or lot Goods reception handling for efficient putaway Automatic suggestions for optimising warehouse locations Extremely high processing speeds Consideration of item status Quality assurance of goods Monitoring of expiry dates Maintenance of special warehouses and warehouse locations, e.g. cooling area Narcotics and dangerous goods documentation and handling Multi distribution centre concept Warehouse diversion in case of emergencies Cross-docking to enable speedy delivery of goods available from another warehouse or late delivery from a supplier Sourcing policy for defining shipping warehouse Labelling and documentation Distribution requirements planning. We expect that the IBS system will generate very substantial annual savings. It s a win-win situation. Phillippe Milliet, Board Member, Galenica AG 6

7 Picking and delivery IBS PHARMA speeds up the labour-intensive work of picking and delivery with automated routines, pick lists and delivery information. Moving the goods with IBS PHARMA means reduced costs in your operation along with increased customer satisfaction, fewer defects, shorter lead-times and the right goods delivered on time. IBS PHARMA is designed to help you use warehouse locations for faster picking and loading. All warehouse process areas, from Receiving to Staging Area, are planned to ensure the most efficient flow of goods. Internal replenishment to prime pick locations, especially fast-mover areas, also helps to speed picking and delivery processes. IBS PHARMA provides extensive support for containers and container selection, critical for pharma distribution. The solution s support of automatic conveyor systems and robotics (see Warehouse Management ) is integrated fully with picking routines. Picking and delivery functionality from IBS PHARMA includes: Pick splitting and pick consolidation for shorter picking time throughout the warehouse Pallet handling Speedy pick-list printing with pick instructions and warnings Smart selection of pick-list according to route, delivery date and priority codes Container selection by item (volume/lines, dimensions, weight, goods criteria such as cooled or fragile, tours) Container selection by type (size, maximum weight, special conditions, maximum filling level, default container) Container selection by criteria (maximum containers per line, pick limitations, picking system, conveyor system, warehouse picking location, filling degree, weights) Printing of container labels Box-in-a-box concept (cooled goods, warm goods) Online route planning and route overview for all orders Warehouse logistics route planning Routing with delivery sequence to customers in a certain area Outbound shipment value control Loading documents Cash on delivery (COD) management Dispatch follow-up. 7

8 Purchasing A bill of good health for pharma distribution means avoiding supply shortfalls and keeping inventory costs low, or customers will order elsewhere. Accurate information is the key to smart and timely procurement, enabling your company to buy quality items at the best prices from reliable suppliers. IBS PHARMA helps to improve and automate purchasing. IBS PHARMA automates purchasing routines by using sales history, real-time inventory levels, lead-times and master data from all transactions. The solution provides sound logic for procurement decisions based on demand history, along with seasonal and trend profiles from sales order history. Current sales promotion profiles, purchase levels and service levels are fed into calculations. Simulation and analysis tools offer models and forecasts that help you make the best purchasing decisions and judge supplier performance for accurate lead-times. With IBS PHARMA, procurement departments can ensure optimum levels of stock, while cutting costs without sacrificing quality. IBS PHARMA purchasing functionality includes: Automatic forecasting, based on system- and user-defined methods Automatic replenishment suggestions with manual override based on orders received With IBS software, Galexis the leading Swiss pharmaceutical wholesaler achieved: IT systems reduced from 6 to 1 Distribution centres consolidated from 11 to 3 Stock reduced 10% Major IT cost reductions Realisation of new functionality Improved customer service Increased supplier services. Buffer stock warehouse set-up Automatic replenishment of warehouse net works Automatic re-order point checking with order creation Online product history and demand history updated constantly Profiles by season and trend for product Simulation tools for purchase reviews of product lines Fully automatic planning and ordering Automatic requests for quotes on certain item groups Inventory analysis Delivery plans and changes (volume data) Stock reduction plans Campaigns, bonus and special events support Service level management Online supplier information and supplier comparisons Automatic purchase order creation via EDI, fax, letter, Internet Emergency purchase function Centralised purchase agreement handling Vendor Managed Inventory (VMI) procurement. 8

9 Returns and Alert Management Returns handling and complaints can cause major headaches for pharma distribution businesses. IBS PHARMA helps to ensure that quality is checked when returned goods are received. Automated returns handling shortens the process from reception through to analysis, distribution and final handling saving you time and money. Cost-effective returns management Accurate order fulfilment helps to ensure that the right goods are delivered to customers and that the volume of returns or damaged goods is reduced. More returned products mean higher administrative costs. Traditional returns take employee time and manual intervention to handle goods and respond to customer requests and complaints. IBS PHARMA helps to reduce overhead costs by automating the returns process. IBS PHARMA supports returns management with automated processes for: Returned goods through Internet order entry or manual scanning Quality control at goods announcement and reception Return reason codes for both purchased and manufactured items Goods analysis and distinction to decide how to handle returned goods Goods distribution and final handling Transporting goods to warehouse locations, to suppliers or for destruction Issuing refunds and/or credit notes to customers, including credit control Issuing invoices to suppliers. Solve problems before they occur IBS PHARMA s Alert Management application gives you a constant monitor on all pharma wholesale routines and processes. IBS PHARMA supports Alert Management with: Alert creation based on user-defined parameters Event detection Business Partner contact lists for event notification (delivery delays, for example, or detection of an incorrect pick-list) Escalation of alerts Message creation and retrieval Active response suggestions Alert enquiry Alert transmission via handheld devices, terminals, , Internet, etc. Alert Management uses rules and guidelines that you establish, such as limitations and filters that react to inventory levels. When an event happens for example, an item shortage the system creates a message and sends it (e.g. via SMS) to appropriate employees. The alert can include a recommended action, helping to solve problems before they have a critical impact. 9

10 Complete supply chain solutions IBS PHARMA is based on IBS enterprise software. IBS offers world-leading supply chain solutions with IBM servers, backed up by a global team of skilled people who offer complete implementation, training, support and consulting services. IBS offers powerful software for all business processes throughout the pharmaceutical supply chain: Analysis and reporting Real-time or historical information for decision support, including: net profitability analysis, monitoring of margins, graphical views and online display of report data, powerful and flexible reporting, analysis of external databases and interface with MS Office applications such as MS Excel. Internet and e-business Easy implementation of user-defined interfaces on scalable web server technology, offering 24/7 service with: order entry, online order tracking, item availability check, online customer information with pricing and discounting, supplier information, financial data retrieval, item catalogue, order status, open item information, shopping lists, user-defined Business Objects, multimedia integration, and XML communications. Customer Relationship Management Automated routines that are aimed at providing high service levels, retaining customers and attracting business, including: target-oriented marketing, support of targeted sales activities, follow-up on offers and marketing campaigns, online information on customers and prospects, MS Office interface, event handling and contact management. The reliability of the IBM platform and IBS commitment to providing software solutions for the pharmaceutical industry ensures that we will be able to face the challenges of our industry. Andrés Cortina, IT Manager, Cofas 10

11 Experienced and well-trained IBS consultant teams for the pharma industry are available worldwide. The IBS PHARMA Global Competence Centre in Hamburg, Germany supports all IBS units for all sales, implementation and support of IBS PHARMA. Business Intelligence Business performance measurement with ROI monitoring, operational efficiency analysis, business partner performance benchmarking, data marts and OLAP functionality, data updating, definition of KPIs and reporting. Integration Complete integration of data for programs, processes and business-to-business activities through IBS INTEGRATOR. Ideal for groups that need to gather and process data from a range of systems or applications. Assembly Full support for distribution assembly, production and manufacturing, including: production scheduling, product configuration, finite planning, availability checks and requirement forecasting, along with packing and labelling. IBS PHARMA is completely integrated with scalable IBS enterprise solutions and is also compatible with other ERP solutions. IBS solutions can be integrated easily with IBS PHARMA, enabling your company to enhance systems at its own pace. 11

12 IBS is a world-leading software supplier for wholesale, distribution and supply chain execution. We provide complete IT solutions for distribution- and supply chainoriented companies. Our scalable and flexible software can always be easily adapted to your company s growth. Among our international customers are Alloga, Cofas, Galexis, Itriafarma, Oriola and Sigma Company. In total, more than 5,000 customers in over 40 countries rely on software solutions from IBS. Our completely web-enabled software covers areas such as collaborative sales and purchase, order processing, supply chain management, demand-driven manufacturing, inventory control, warehouse management, and customer service. With integrated tools for business analysis and financials, our customers can maximise their profits and concentrate on the critical success factors of their company. Quick and efficient installation of the system guarantees rapid Return on Investment (ROI). For more than 25 years our global network of subsidiaries and business partners has provided future-oriented companies with software, hardware and services. IBS has the business software you need. IBS PHARMA can help your pharmaceutical wholesale and distribution business to lower costs, improve service levels and improve profitability. For more information about IBS PHARMA and other IBS business software, contact your local IBS representative, or: IBS AB Corporate Headquarters P.O. Box 1350 SE Solna, Sweden Telephone + 46 (0) Fax + 46 (0) info@ibs.net International Business Systems (IBS) GmbH IBS PHARMA Global Competence Centre Deelbögenkamp 4c D Hamburg, Germany Telephone Fax ibsinfo@ibssoftware.de Production and design: IBS Global Sales and Marketing department. IBS, IBS INTEGRATOR and IBS PHARMA are registered trademarks of IBS AB, in the European Union and in other countries. All other trademarks or registered trademarks mentioned herein are the property of their respective holders. The information contained in this docu ment is summary in nature, subject to change and intended for general information only. The details pertaining to functionality and routines are based on IBS software, post release For updates of this information, please contact your local IBS representative. Copyright IBS 2005.