Logistics network planning is comprehensive and systematic for company’s logistics nodes. Changes in raw material supply system or distribution system could affect the logistics network operation. Due to “two-invoice” policy, many pharmaceutical enterprises adjusted the sales network system in recent years. It also raises new requirements for current pharmaceutical logistics system. Thus, Novo Nordisk (China) Pharmaceutical Co., Ltd delegated Fablog to do the nationwide logistics network planning.

Novo Nordisk (China) Pharmaceutical Co., Ltd is a global leading pharmaceutical company which focuses on healthcare, benefits patients, doctors and society by advanced technology. According to the implement of “two-invoice” policy and business growth, current logistics network cannot satisfy the further development. Thus Novo Nordisk hopes to establish nationwide RDCs to face the market changes and save cost.

 Fablog divided the work into three phases. RDC site selection model was set up based on the analysis of Novo Nordisk current logistics situation. Then Fablog provided site selection options, inventory optimization and IT system optimization option with the combination of practical operation.

Firstly, Fablog assessed the distributors logistics status, transportation status, orders distribution, RDC operation and then found the problems.

 Next is to set up the site selection model. Fablog evaluated different options with different RDC numbers and then analyzed the cost and timeliness.

Finally, Fablog analyzed inventory strategy and management supporting system after the communication with Novo Nordisk about site selection options, and then offered suggestions.

By adjustment and improvement of RDC layout, inventory level, operation process and logistics information system, Novo Nordisk could save over 1 million logistics cost, reduce logistics pressure of the factory, and improve the response speed for market in the meantime.