PROBLEM/CHALLENGE        Printer Friendly (PDF File)

In April 1997 continued growth forced a major pharmaceuticals company to re-evaluate its North American warehouse capacity requirements and business processing priorities. Its immediate response was to consider outsourcing sales sample distribution or re-locating the process from its Midwest distribution center in Indiana to its East Coast operations in New Jersey.

The founders/owners of MD Logistics (who have worked closely with the pharmaceutical company’s logistics division since 1992) convinced the company that MDL’s rapid response capabilities were up to the task of securing environmentally-controlled facilities in Central Indiana. This effort would preclude the pharmaceuticals company from the costly disruption of an East Coast relocation.

Ten days after making the challenge, MDL had executed favorable lease terms for a 45,000-square-foot, pharmaceutical-compliant warehouse and begun receiving products.

As the pharmaceuticals company’s pipeline increased product offerings, sample inventory requirements grew as well. The growth coupled with new industry regulatory and compliance mandates necessitated additional sophisticated capacity. In November 1997, MDL relocated into an expandable, state-of-the-art, 78,000-squarefoot facility in Plainfield, Indiana. MDL signed a long-term contract with the pharmaceuticals company parallel with the executed lease. The agreement was extended twice to accommodate facility expansion to a total of 183,900 square feet.

As Dave Kiebach says, “We truly wake up to the morning and go home at night believing we are (this company’s) employees. The partnership strength comes from open doors, books, and minds that covet success.”

In January 2003, the vice president of global logistics for the pharmaceuticals company, advised MDL of the company’s intent to close the East Coast Distribution Center in New Jersey. Consistent with the closure date, it was necessary to have “ready” facilities to relocate refrigerated products by an April 20, 2003 target date. With a firm handshake on a seven-year commitment, MDL went to work.

SOLUTIONS

“MDL did a phenomenal job on a very aggressive timeline,” stated the vice president of global logistics. “They became a part of our company’s team… strategically, tactically and operations-wise… to get up and running and with certification… they enabled us to make our productivity goals and provided impeccable customer service.”

“The unusual part of this relationship was the timing,” stated the director of the pharmaceutical company’s warehousing. “There was a very short window of time within which to accomplish this project.”

With a finite objective, MDL executed a new 312,000-square-foot facility which includes:

• A 20,000-square-foot racked refrigerator
• Temperature/humidity-controlled and –monitored space
• Sophisticated video surveillance and security systems
• Local, state, and national pharmaceutical drug licenses and certifications
• Systems integration with the pharmaceuticals company

RESULTS

Through a trusting collaboration, MDL and the pharmaceuticals company entered into a multi-faceted, bilateral long-term agreement for product storage, order fulfillment, cross-dock and global distribution services for both trade and sample products.

In October 2004, MDL and the pharmaceuticals company completed the Phase I Warehouse Management System (WMS) deployment objectives for disaster recovery, redundancy and control in the Plainfield facility.

BENEFIT TO MANUFACTURER-CLIENT

Relationship: “The engagement of Mark and David and their people who feel really part of our company, makes them truly a business partner,” explained the vice president of global logistics. “They are very creative and very responsive.”

Speed: MDL’s response time earned it the pharmaceuticals company’s business and provided the client with facilities and fulfillment services without skipping a beat in the pace of its product distribution. The director of warehousing commented, “The MDL location next to the airport gives us the flexibility to take advantage of Fed Ex services.”

Compliance: MDL’s understanding of the Pharmaceutical Drug Marketing Act and thorough approach to problem-solving provides its client company with worry-free compliance in its storage/distribution operation.

Trackable records: MDL’s technological capabilities provide for complete records of temperature/humidity levels of product storage and security surveillance should the pharmaceuticals company ever be questioned.