Lead times and costs drastically reduced by digital supply chain

More orders in ever-smaller batch sizes and with short lead times: this increases the degree of complexity that already exists in the pharmaceutical industry’s entire supply chain. It also led to severe production bottlenecks for one of the world’s leading manufacturers of pharmaceutical products. Even the procurement of the secondary packaging was unnecessarily costly and time-consuming. The packaging specialist company Faller Packaging helped the manufacturer make this process faster and more reliable.

The company had been relying on Faller Packaging for the procurement of secondary packaging materials for some time. The packaging specialist supplied folding cartons, labels and package inserts to the nearby production site from a single source - but the customer always submitted a separate order for each product. 

Together with Faller Packaging, the pharmaceutical company optimised its procurement process. In the first step, Faller Packaging and the customer bundled the orders for folding cartons, labels and package leaflets by product – so instead of three orders, Faller Packaging only received one. The packaging specialist could then optimally distribute the KIT orders to its internal production capacities in the various plants, produce the items and subsequently put them together on pallets, even before they were shipped to the customer. 

The support provided by Faller Packaging reduced lead times in the pharmaceutical company’s production by an average of 65% and cut its expenses by around €400,000.

You can read the detailed case study here.

For more information on the case study, please see our press release