Pharmaceutical companies rely on postponement solutions in the framework of distribution.

Increasing competition and cost pressures caused by political structural reforms are keeping the health market in constant flux. To continue on a successful course despite declining margins and tough competition for market shares, it is necessary to have flexible new approaches that simultaneously reduce costs. For this reason, more and more pharmaceutical companies are relying on logistics services which have already proven their value in other industries.

In logistics, postponement refers to a delaying strategy and generally means delaying a decision in order to make use of the better informational status that comes with a shorter forecasting period.

In practice, it means that the medications initially packed by pharmaceutical manufacturers are stored in a neutral manner in central warehouses. The products receive their final packaging by a logistics service provider and are provided with the appropriate labels, package enclosures and directions for use only after an order has been received.

The advantages at a glance:

• Increased flexibility
• More reliable supply at lower stock levels
• Better utilisation of storage capacities
• Exploitation of economies of scale in production

The above information in detail can be found here.

As a full-service provider for the pharmaceutical, health care industry, arvato services healthcare has government permits for the packaging, repackaging, labeling and release of medications. Thus, the company guarantees GMP-compliant production of pharmaceuticals under the highest safety standards in a strictly isolated area with monitored temperature and controlled access. Validated processes and specially trained personnel guarantee that processes will be correctly performed and documented at all times.