Rep Virtual Logistics Network (VLN)
Situation
In North America most pharmaceutical manufacturers create demand by driving samples (literature and promotional materials) through company sales representatives. Reps may keep these products in their garages, their basements, their cars, their attics...
We estimate that the average pharma rep loses 1 to 3 days each month – 10 to 20 hours – acting as a personal inventory manager. Translate that time lost into dollars, apply those dollars to physician appointments, and the result is roughly a $30 to $50 penalty, per appointment. Such requirements as:
- waiting for shipments
- chasing orders
- preparing for audits
- packing boxes
- reconciling trunk inventory
wastes their time and your marketing budget. The effect on turnover is even more expensive. All the while, manufacturers continue to add reps to get in front of more physicians.
Implementation Services
Consulting
Kuehne + Nagel's professional services team knows what's required to successfully deploy, grow, and support Web-based pharmaceutical solutions. They draw on their expertise in pharmaceutical business practices and technology, as well as Kuehne + Nagel's deployment methodology, to understand your requirements and then qualify, plan, manage, build and deploy world-class solutions.
Our professional services team provides you with expertise in:
- Pharmaceutical business requirements
- Project management
- Creative design and branding
- Web navigation and design
- Web and communications technologies
- EAI and messaging methodologies
- Systems
Methodology
Kuehne + Nagel's implementation methodology ensures timely and predictable delivery of quality private marketplace solutions. It does not enforce an "all or nothing" approach to solution implementation; rather it is sensitive to business issues and timelines. We know business rules drive the business – technology only supports them. This flexibility enables Kuehne + Nagel to speed solution deployment, enabling customers to realize the fastest time-to-value.
The process is comprised of four key phases:
Inception
Gain understanding of the business vision, goals and strategy. Develop a high-level understanding of the application requirements and associated priorities. This phase introduces the project teams, defines the scope of the initial project and identifies future solution phases.
Collaboration
Focused on the communication and documentation of the required application functionality, including business, technical, and user acceptance requirements. A gap analysis is performed and a project work plan for solution implementation and configuration is generated.
Configuration
Performance, security, and redundancy requirements are analyzed to develop network and server hardware specifications. System enhancements and modifications are developed and tested, and the system is deployed and tested.
Deployment
Focused on deployment and launch of the solution on the production hardware configuration. Client acceptance testing is performed, user and administrative training is provided, and post-launch support is initiated after a successful "go-live."
Rep VLN – Benefits
Though a "virtual logistics network" encompasses more than outbound logistics, one way to look at value opportunities is by measuring transportation, an out-of-pocket logistics expense shared by all manufacturers. Our research shows that manufacturers typically spend from $10-$13 per shipment on service that isn't exclusively next-day, but a mix of next-, two- and three-day fulfillment just to move product to the field.
The value proposition: Our comprehensive VLN fulfillment solutions likely can be implemented for what you are currently spending on transportation – or less. Our solution includes:
- systems management
- storage
- pick/pack
- putaway
- tracking
- transportation
- fulfillment
- reporting
- unsurpassed PDMA compliance
Factor in current storage and handling expense (especially intense for product launches), and our VLN solution can drive real value.
Most important is the recovery of time-out-of territory. Our VLN models allow you to recover 50 to 100 percent of rep time currently lost to personal inventory management. When reclaimed time-out-of-territory is applied to selling, the corresponding top line increases can be substantial.
Logistics is not just about saving money, it's about making money, too.
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