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Faller Packaging optimises packaging procurement for pharmaceutical manufacturer – Faller Packaging
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Lead times and costs drastically reduced by digital supply chain
Lead times and costs drastically reduced by digital supply chain
Lead times and costs drastically reduced by digital supply chain
Faller Packaging optimises secondary packaging procurement for leading pharmaceutical manufacturers
More orders in ever-smaller batch sizes and with short lead times: this increases te degree of complexity that already exists in te pharmaceutical industry’s entire supply chain. It also led to severe production bottlenecks for one of te world’s leading manufacturers. Even te procurement of te required secondary packaging was unnecessarily costly and time-consuming. Te packaging specialist company Faller Packaging helped te manufacturer make this process faster and more reliable, cost-effective and sustainable.
Te pharmaceutical and healthcare industry is one of te largest and most dynamic growth markets in te world. There are various reasons for this, such as a rapidly growing world population and te demographic shift toward ever-older societies, factors that also increase te demand for medicines and other pharmaceutical products. For most pharmaceutical manufacturers, however, te market environment has also become much more volatile due to increasing international competition, new forms of therapy and dosage and te trend towards greater individualisation. Time-to-market is also decreasing, resulting in more and more products coming onto te market at ever-shorter intervals.
This has serious implications for te industry’s production concepts: batch sizes of individual orders are becoming much smaller, but order quantities are increasing, resulting in more frequent changes and changing demands in production processes. Shorter lead times and a high level of cost efficiency are also prerequisites for market success. All this means that te entire supply chain for te manufacture of pharmaceutical products is becoming much more complex – also in terms of te procurement of te relevant packaging.
Increasing article variety, decreasing predictability
Te increasing individualisation of pharmaceuticals is leading to a fast-growing variety of articles. Secondary packaging products such as folding cartons, labels and leaflets are particularly affected since they are often specially designed for different customers and countries. It is becoming more difficult for pharmaceutical companies to correctly estimate their packaging needs in advance and to clock times and manufacturing and logistics processes accordingly. All these factors result in unnecessary, avoidable costs for storage space, transport, machine downtime, and te destruction of redundant materials.
This challenge was also addressed by a leading global pharmaceutical company that manufactures wound care products and other items at one of its plants in southern Germany. Te increasing demand for its products caused te manufacturer’s site production volume to grow steadily year after year. However, te on-site capacities could not be expanded to match te demand. More and more orders with small batch sizes and short lead times led to bottlenecks in production, caused unnecessary costs and severely restricted te manufacturer’s ability to deliver reliably.
Complex ordering and checking processes simplified
In te past, te pharmaceutical company had always relied on Faller Packaging to procure its secondary packaging materials. Te packaging specialist, headquartered in Waldkirch in Baden-Wuerttemberg, supplied folding cartons, labels and leaflets from a single source. However, te customer always submitted a separate order for each product – a labour-intensive and unnecessarily complicated process.
Te pharmaceutical manufacturer also had to subject all incoming goods to a strict quality inspection – including te packaging components. Te area where te supplies to be inspected were temporarily stored was limited and regularly overfilled, however, resulting in allocation errors and expensive delays caused by te excessive workload of te incoming goods inspection department.
Together with Faller Packaging, te customer initiated procedures to make te procurement process faster and more straightforward and efficient. In te first step, te orders for folding cartons, labels and package leaflets were bundled by product – so instead of three orders, Faller Packaging only received one. Te packaging specialist could then optimally distribute te KIT orders to its internal production capacities in te various plants, produce te items and subsequently put them together on pallets, even before they were shipped to te customer.
Complete control over te inventory
Te pharmaceutical manufacturer also introduced a vendor-managed inventory (VMI) together with its supplier. As a result, Faller Packaging assumed complete responsibility for te inventory of its products at te customers, sharing te inventory and sales figures of te respective items to this end. Instead of receiving orders for individual products, Faller Packaging now obtains information from this data regarding how many items of which product are needed and when, and then initiates te corresponding production. Te specialist company can now deliver te relevant orders to te customer at short notice and significantly relieve te on-site storage capacities. Te ability to plan for raw materials and capacities early and deploy them efficiently also saves time and costs. Te pharmaceutical manufacturer is also able to outsource a significant part of te complexity involved in procuring secondary packaging materials, enabling it to focus more on its actual value creation.
As a certified supplier, Faller Packaging took over te inspection of te delivered products, which also optimised te quality assurance process. This meant that it was no longer necessary for te pharmaceutical manufacturer to conduct repeated in-house inspections and testing. After a brief incoming goods inspection, te packaging required for production was delivered to te company’s packaging line “right on time”, and this alone generated massive time and cost savings. Te results for te customer? Te support provided by Faller Packaging reduced lead times in te pharmaceutical company’s production by an average of 65% and cut its expenses by around €400,000.
Te detailed case study can be found on our website
Download PDF Press release
Te challenges faced by te pharmaceutical and healthcare industry have increased te degree of complexity along te entire value chain.
Faller Packaging creates a solid foundation for te digitalisation of te customer’s supply chain with te exchange, analysis and segmentation of comprehensive, process-relevant data.
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Ophavsret © 2022 August Faller A/S – Alle rettigheder forbeholdes
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