Otsuka

Flexible distribution models

Thanks to a smooth, transparent and extensive system of interconnected, decentralised storage facilities, Otsuka can adapt to a variety of distribution models and to the unique demands of each market, such as emergency pharmacy orders (EPOs) in France. Different kinds of customers are supplied depending on the market: in Northern Europe, Otsuka predominantly serves wholesalers and hospitals, whereas in Italy, Spain and France, the majority of clients are pharmacies. Otsuka’s regional proximity to patients gives the Japanese pharmaceutical company supply reliability.
This approach also makes it easier for them to conform to each country’s specific legal and regulatory requirements.

By expanding the international network of facilities and storage locations, Arvato is able to fulfil the needs of the customer and tailor the supply chain to the demands of the ever-changing pharmaceutical industry. In line with this approach, the locations in Germany, Spain, Italy and France are all equipped with a dedicated customer service workforce. Functioning as a central point of contact, an international Key Account Manager works to coordinate the collective know-how of the most significant departments and also manages local projects.

Alongside the development of the decentralised warehouse structure, Arvato has also been pressing ahead with networking and interconnecting the order-to-cash processes across all locations so that the client’s high demands can be fully satisfied from a systematic perspective as well. The international locations are all tied to the unified European quality management system as well as the fully integrated, SAP based IT landscape. With this, we can offer the customer standardised processes, data security, high transparency (including BI reporting) and holistic training management with MasterControl all across Europe. This also allows for a reduction in the number of interfaces and points of contact.

Distribution across Europe

With all of this, Arvato is enabling Otsuka to monitor all movement of goods as well as the cash flows for all ordering, logistical and financial processes throughout Europe. Arvato also oversees Otsuka’s transportation with its transport management service, including track and trace. Expectations are being met with same or next day delivery. Further distribution within Italy as well as San Marino is taken care of from the Calcinate location in Bergamo. Similarly, operations in Spain and the surrounding islands are centred around Alcalá, near Madrid. This makes it possible to guarantee delivery in under 24 hours. Deliveries to France and her overseas territories are made from the site in Chanteloup-en-Brie. The multi-user site in Harsewinkel, meanwhile, assumes responsibility for distribution in all central European markets and is also responsible for replenishing stock levels at the satellite sites named above.

Additional benefits for the customer

The solution provided by Arvato enables Otsuka to react more flexibly to the demands of different countries, particularly in relation to changes in the market and different distribution models. By using a single service provider for all of its processes and procedures (international customer service, warehousing, transport, financial processes), the Japanese pharmaceutical company was able to reduce its processing times and transport costs, while also saving the money it had previously spent on services such as linehaul solutions for temperature-controlled transport in local transport networks. All locations are certified according to the highest quality and industry standards with one IT and QA system. Otsuka also benefits from a centralised and efficient risk management process for Europe.