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AmerisourceBergen - Increasing Operational Efficiency using Profit Analysis
AmerisourceBergen is a wholesale drug distribution company. AmerisourceBergen is committed to building value by delivering pharmaceutical and healthcare solutions, along with the products and services to support customer needs in innovative and cost effective ways. AmerisourceBergen’s focus is to provide the best service in the pharmaceutical supply chain with continuously improving operational efficiencies and expanded offerings and programs.
In this case study you would see how a leading wholesale drug distribution company achieved improved operational efficiency through Systech’s innovative and cost effective solution and analysis.
The client had to consolidate data from multiple transactional systems into a single enterprise data warehouse. The data consolidation would provide a single view across the entire enterprise and permit Integrated Reporting, Analysis and Decision-making, across the organization. This would provide a single Customer view/definition across the enterprise – eliminating the disconnect in processes such as sales, fulfillment and customer service & satisfaction.
The client had disparate source systems and multiple decision support systems where data could not be merged or consolidated. These data sources/elements did not map to the definitions in the financial systems either. They were able to generate reports at an invoice level and the reports were taking exceedingly long execution times. The challenges for Systech were:
- To build a single repository for information – integrating data from the disparate systems.
- To design a cost effective solution utilizing the existing hardware and software.
- To deliver within the extremely tight timelines defined by the customer(s).
- To enable flexible & detailed data analysis.
- To implement the front-end application such that it could support existing requirements and possible future developments.
- To provide visibility and insights into costs, revenues, capacity and assets, providing insight into past, present and future information.
- To measure historical performance, profits of incoming orders, initiate trend analysis, predict and optimize costs, profit, capacity; for return on invested capital of your future business.
- To ensure the delivery of undeniably accurate, actionable and widely accessible cost (direct and indirect), resource and capacity information enabling the client to operate more efficiently and in turn reduce cost.
At the very beginning, it was determined that the sheer size of the workload combined with the complexity of the organizational and data issues would require a project team with strong leadership & high level executive sponsorship from the client. The tight schedule and budget constraints worked against the traditional approach of organizing a big onsite project team with the resources necessary to accomplish those goals.
Systech team decided to split the project into manageable parts – each of which would be tackled by a small team split into an On-site project lead and an Off-site project team. The Onsite-Offshore teams adopted a fast, responsive and iterative approach to fashion a solution for their part of the puzzle. Iterations of model-build-test-fix-retest resulted in a better componentized build for the Data Warehouse.
Systech teams worked in collaboration with the client to engage, understand the business requirements, craft the technical components and deliver a cost effective analysis for key business areas including:
- Customer & Channel Profitability
- Segmentation profitability
- Sales Optimization
- Strategic Cross-Sell
- Distribution Optimization
- Reducing Operating Expenses
- Reengineering & Process Redesign
- Supply Chain Measurement and Optimization
- Resource & Capacity Planning & Utilization
- Product Profitability
- Line of Business/Segment
- SKU Rationalization
- Brand Analysis
- Corporate Performance Management
- Business Process Measurement & Analysis
- Optimized Return on Capital
- Continuous Improvement Monitoring
- The solution delivered by Systech not only addressed the pain areas but also provided additional benefits to the client.
- Datawarehouse delivered to the client resulted in improved process efficiencies, faster query response times, reduced data load windows, a flexible data model to permit a wide range of analysis.
- Systech’s solution empowered decision makers by allowing them to drill down into their data for detailed analysis.
- Additional types of analysis facilitated by the solution include profitability analysis based on segment, insight into wholesale acquisition cost and better insights of the historical data.
- Forecasting was a key functionality in the delivered solution. This function provided the scoring and tracking tools for business operations.
- Systech helped pinpoint client’s unprofitable products, customers and vendors that might require renegotiation, re-pricing or obsolescence
- Systech’s solution identified profitable products and customers and helped identify opportunities for profit improvement