Case Study

Evolution and excellence in a pharmaceutical group

The company

In a family organization with over a century of history, the ambition has always been to position itself as a benchmark in the pharmaceutical sector. With a mission to provide personalized and excellent healthcare, this network deeply values relationships with both customers and employees, which is at the core of its philosophy. By continuously investing in efficient processes, the organization ensures speed, precision, and quality of the services provided, effectively responding to the needs of the community.

Additionally, while maintaining quality and a distinctive personal touch, the commitment to continuous growth, innovation, and contributing to the overall well-being of the community are fundamental pillars of the company’s philosophy.

The challenge

As a result of the recent pandemic, operations were fragmented in the group’s various pharmacies and began to operate independently, losing uniformity in process execution. With the post-pandemic recovery and the anticipation of a growth scenario, there was a need to reassess and standardize essential processes. Therefore, identifying crucial needs for the proper functioning of the company including:

• Standardizing the reception, reverse picking, and replenishment processes across all the group’s pharmacies.
• Developing an efficient stock management model that would allow reducing stored volume.
• Improving the advisory board model that has been in place until now, introducing up-selling and cross-selling standards.
• Implementing a daily meeting model that is common to the group.
• Fostering a culture of continuous improvement, empowering teams to develop improvements in their daily operations.

The approach

In short, the project unfolded in three distinct phases:

• Strategic design: Identification of critical processes to be addressed in strategy design by management.
• Analysis and planning: Mapping of VSAs in key areas, including analysis of the sales process, supply chain, customer satisfaction, communication and brand development, Kaizen culture, and recruitment and training processes.
• Execution and monitoring: Implementation of a defined schedule, focusing on workshops regarding loyalty programs, visual merchandising, optimization of reception, replenishment, and stock management processes, among other critical topics for improving processes.

Lastly, a monthly Hoshin Review meeting was set up to ensure continuity and alignment of the implemented strategies.

Results

The results were considerable, reflecting a significant transformation in key indicators:

• Sharp reduction in stock-outs by 74%, decreasing from 12% to 3.1%.
• Increase in the average ticket by 16% (from €18.65 to €20.65).
• Reduction in stock coverage by 8%.
• Increase in customer satisfaction by 9%, reaching 90%.

This case study illustrates the transformative impact of a structured approach aligned with the principles of continuous improvement, even in organizations with a deeply rooted historical legacy. This network of pharmacies not only overcame the challenges posed by an adverse context but also emerged stronger to face future challenges.