Wholesale distributors (WD) are the bridge between the pharmaceutical manufacturers, retailers and healthcare providers. WDs purchase inventory from manufacturers, either entire product lines or specific products based on downstream demand. They redistribute those products to a variety of outlets - namely hospitals, pharmacies, clinics, and independent drug stores.
WDs struggle with the same problem that nearly all stakeholders in the global pharmaceutical supply chain face: visibility. For distribution, one of the most important business processes is forecasting, which becomes incredibly difficult when there is little visibility beyond immediate supply partners. Most tracking systems stop once a packet of drugs reaches its next destination, but that may only be the very beginning of the packet’s journey. If a WD were able to unlock their downstream supply data, they would be able to drastically reduce forecast error and lag/lead times, in turn greatly lowering the cost of logistics.
Using Farmatrust’s Zoi Platform, Wholesale Distributors will be able to lower costs by enhancing the visibility and compliance throughout their entire supply chain. Using the Tracking Map combined with the Events Timeline and Transaction History tools, supply chain managers will have a wildy improved picture of the entire supply chain in greater detail than before. The platform’s interoperability features will also help to overcome the data silos and incompatibilities between legacy systems that plague the industry. As a result of their new visibility, companies will be able to respond to events and create better, more accurate demand and inventory signals to ensure that the supply of drugs meet the demand. In addition to lowering costs, the Zoi platform will enable WDs to be fully compliant with the product-level track and trace requirements outlined in the Drug Supply Chain Security Act and the Falsified Medicines Directive. For a specific example of how FarmaTrust would improve visibility and compliance for Wholesale Distributors , see the Case Study below.
Company: Global Farmaa Distribution
Employee: Amil, Senior Operations Manager
Amil is a Senior Operations Manager at Global Farma Distribution, a multi-billion-dollar primary wholesaler that purchases drugs in bulk from manufacturers for storage and distribution around the world. Global Farma Distribution is one of the many companies that act as the bridge between manufacturers and retailers and healthcare providers, processing and delivering orders for pharmaceuticals to hospitals, pharmacies, and independent drug stores. Their supply chain is complex and has thousands of stakeholders around the globe that depend on receiving the quality product on time, which makes visibility and rapid responses to problems a must-have.
Amil has been tasked with overseeing the implementation of new track-and-trace procedures ahead of the upcoming FMD and DSCSA regulations in the EU and US. Starting in 2018 (and 2019 for the EU), Global Farma Distribution will be required to track pharmaceuticals at the product level as opposed to the batch level, which will require significant investment to implement and strong tech and team to maintain.
Amil has heard about the FarmaTrust Zoi Platform, and he thinks it will be a good option for updating the company’s track and trace capabilities. Given that it was designed with these impending regulations in mind, the Zoi platform provides tracking functionality at the product level, while most every other SCM solution only provides data at the batch level. Utility Tokens will provide Global Farma Distribution with valuable data on their upstream and downstream partners, allowing Amil and his team remain compliant and identify opportunities that would have been impossible to see otherwise.
Over the last several years, Global Farma Distribution has been expanding into Central and South America. As the expansion has progressed, there have been increasing quality concerns followed by reports of substandard product. Leadership suspects that fragmented supply chains and a larger number of stakeholders in the region leaves more room for malpractice, and has tasked Amil with securing the supply chain. Amil believes that there are bad actors within the supply network that are salting product - mixing products and swapping labels to create more volume, thereby sacrificing the integrity of the product.
To address the visibility and quality concerns in the Central and South American Expansion, Amil has decided to enlist the help of FarmaTrust’s Zoi Platform. With it, Amil hopes to be able to secure the supply chain by creating end-to-end visibility with FarmaTrust’s tracking capabilities. With the help of the Zoi platform, individuals products will be tracked throughout the supply chain, leaving behind an immutable trail that will make any counterfeit products obvious. Additionally, the Zoi Platform’s interoperability will make implementing the solution and collaborating with an extensive supply partner network exponentially more efficient and less costly.
Choice to integrate with their own serialization system or for the creation of a new S/N system through the Zoi Platform, which is compatible with a wide array of labelling and management systems
The Transaction History and Chronological View allows the Zoi platform to flag problematic transactions with pinpoint accuracy, allowing for more effective responses to supply issues and instances of counterfeiting
The Tracking Map will provide an intuitive view of the entire supply chain, both upstream and downstream, allowing management to identify pain points as well as improvement opportunities.
Analysis / Reporting
The Zoi Platform was built with the FMD and DSCSA in mind, the new gold standard for supply chain and anti-counterfeit good practices, and is the perfect tool for staying compliant in the shifting and increasingly strict regulatory landscape around the world
Through the use of Zoi tokens, companies will be able to coordinate much more efficiently with supply partners, seamlessly integrating real time logistical data to improve collaboration and create new efficiencies
Armed with a wealth of data, the Zoi platform will eventually be able to implement AI functionality that will reduce costs, shorten lead times, and improve the effectiveness of responses to supply problems.