Digitization is Driving Internationalization

"Pharmaceutical and medical technology companies today want regional, rather than national solutions. This usually means EMEA (Europe, the Middle East, Africa) coverage from within Europe and global exports from this region.”

Dr. Thorsten Winkelmann, President Healthcare - Arvato Supply Chain Solutions

Expanding the international Healthcare network

For example, one company that is now operating in a decentralized fashion with a transparent network is a Japanese pharmaceutical firm, one of the top 20 worldwide, for which Arvato has been strategically supporting and putting into practice (since mid-2016) the switch from a central warehouse with independent satellites to several networked warehouses in Europe.

For this globally active pharmaceutical manufacturer, Europe is one of the core markets and contributes significantly to the company's global sales each year. Since 2013, Arvato has been responsible for pharmaceutical logistics for the Japanese company in this important market. This took place centrally from the distribution center in Harsewinkel, Gütersloh district, until 2016. Then, with the extension of the Healthcare network, three modern warehouses in the strategically important markets of France, Italy and Spain were added. Thanks to these local logistics centers, the company is now both much closer to the customer and better able to meet the legal and regulatory requirements of the respective country.

Alongside the development of the decentralized warehouse structure, Arvato made strides in linking up the ordering, logistics and financial processes across the different locations. A central focus was the European quality management system, and a leading role was played by the IT organization of Arvato Supply Chain Solutions’ Healthcare business unit. The current level of internationalization was made possible by the digitization of all quality management processes, including training with MasterControl. All of Arvato's processes are controlled via fully integrated IT based on SAP. This reduces interfaces and guarantees the Japanese pharmaceuticals customer cost-saving, uniform and digital processes across borders as well as data security and a high degree of transparency regarding all movement of goods and payment flows in Europe.

Data analysis is becoming ever more important

One of the main driving forces behind digitization is the increase in customer requirements with regard to transparency, delivery capacity and reliability, as well as the desire for individualized products or services. With its tools and services, Arvato is well positioned to develop new digital offerings. Although the demand for appropriate solutions depends on the respective industries, which have different levels of development with regards to digitization, it is clear that the generation and analysis of data is becoming increasingly important in all processes. In the e-commerce sector, for example, data on the behavior and preferences of end customers is becoming increasingly important for companies. As a digital change agent, Arvato Supply Chain Solutions supports customers in the development and implementation of specific solution strategies and relies on intelligent data linking and the latest generation of real-time data analysis software. Using sophisticated algorithms, the order and return behavior of the end customer can be better predicted, replenishment processes improved, inventories optimized by means of real-time data on prices and sales, and deployment planning precisely controlled in the warehouse.

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The Arvato Supply Chain Solutions Healthcare Network in Europe

Our Europe-wide network of locations in the healthcare sector offers the advantages of centralized control, a consistent IT-system landscape based on a fully integrated SAP system and centralized quality management. This creates perfect conditions for individual and harmonized European solutions.

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