Medservice Plus: WMS implementation for one of the largest pharmaceutical DCs in Kazakhstan by TeamIdea

Medservice Plus is Kazakhstan's leading pharmaceutical distributor. Handling everything from medicines to medical equipment, they connect over 130 manufacturers with more than 2,500 customers, including pharmacies and healthcare providers. The company's warehouse is one of the largest pharmaceutical facilities in Almaty, processing over 12,000 pharma SKUs.

In 2016, Medservice Plus achieved maximum throughput capacity, thus its ability to scale operations in the region was limited. To address this challenge, the company initiated to open a new Class A warehouse complex, operated by SAP EWM. TeamIdea was chosen as the trusted partner for the WMS implementation, development and support. 

Project Features

1. The warehouse is designed for handling pharmaceuticals, a highly specialized commodity that requires strict storage conditions and temperature control.

• The warehouse area is divided into 3 temperature zones and equipped with special sensors activating when deviations from the norm occur. 

• Constant temperature monitoring (24/7, year-round), with fluctuations recorded at specific points at various heights.

• Integration of a WMS system with SSI Schaefer's conveyor and the company’s existing ERP system based on SAP S/4HANA. The warehouse structure allows installing a second mezzanine line.
  
  

2. Medservice Plus is committed to ensuring that all its warehouses meet international GDP standards.

GDP (Good Distribution Practice) is an international standard that sets requirements for the wholesale distribution of medicinal products. It ensures the quality, safety, and security of medicines and medical equipment throughout the pharmaceutical supply chain.

To comply with the standard, warehouses must reduce risks related to the safety of goods and minimize process failures that could lead to quality issues. As a result of these efforts, the company earns the trust of customers and recognition from leading pharmaceutical manufacturers, for whom the reputation of their partners is of utmost importance.

Functional Scope of WMS implementation

Project results

The project began in March 2016, and 7 months later the WMS system went live.

Within just 2 months after the go-live, the warehouse met its target performance KPIs. With SAP EWM it can process over 1,000 orders daily, with capacity to scale and expand its warehouse operations without any limits.  

The system automates the receipt of goods and instantly updates the database. It also enabled advanced warehouse management strategies, including scheduling of goods receipt and shipment, and automatic compliance labeling.

The new warehouse complex meets all of Medservice Plus' storage needs while ensuring optimal inventory levels.

This project also aligns with Medservice Plus' roadmap for the gradual transition of all its branches in Kazakhstan to GDP standards.

Testimonials

“Reliability is a fundamental requirement that we apply to both our partners and ourselves. This was the key criterion when we selected the management system for our new distribution center. The automation  with SAP EWM has significantly improved the quality of our logistics services and strengthened our competitiveness on the pharmaceutical market. Thanks to the even distribution of load across all control points, our warehouse operates at maximum productivity. By using the 'double-check' principle, we quickly and safely ship batches of orders from the warehouse directly to pharmacies”, Saida Erdenbekova, Director of Quality Assurance, Medservice Plus LLC.

“SAP's solution for automating warehouse logistics helps companies reach a new level of efficiency. As a result of the project, Medservice Plus order processing and placement in the warehouse, and can now effectively allocate its resources.
We believe that SAP EWM will become the foundation for future successes, industry leadership, and the achievement of strategic goals for Medservice Plus”, Maxim Lamskov, Managing Director of SAP Kazakhstan.

Awards and recognition

In 2018, the project of WMS implementation by TeamIdea and Medservice Plus won the highest Platinum SAP Value Award in the category of “Logistics for Competitiveness”.

This award recognized operational improvements from implementing SAP EWM, making Medservice Plus a leader in competitiveness in Kazakhstan’s pharmaceutical sector.

“Working on the project required us to deeply immerse ourselves not only in the specifics of the pharmaceutical company's business processes but also in the intricacies of the GDP standard, which the current logistics center of Medservice Plus complies with. One of the key features of a pharmaceutical warehouse is the mandatory temperature zoning of storage areas for drugs with different temperature requirements. The new warehouse operates on the FIFO principle and meets the highest global quality standards”, Pavel Malko, Partner, Director of SAP Practice Development, TeamIdea.

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