Balancing reliable speed to market with fluctuating demand is crucial. When one of India's biggest pharma companies wanted to improve its U.S. logistics, they turned to us. Because even though the drugs were generic, their supply chain couldn't be.
Generic pharmaceuticals are one of the fastest-growing healthcare sectors. Lupin Ltd., one of the largest pharma companies in India, and parent of Baltimore-based Lupin Pharmaceuticals, Inc., supplies generic and branded medications to global healthcare providers and patients. Lupin wanted a logistics partner to warehouse and distribute imported generic drug products at facilities built to certain quality standards. They had to meet speed and reliability requirements, scale to handle fluctuating volume and expertly stage new product launches.
"UPS somehow, some way, got a package off another plane and delivered it, by van, same day. It's clear that when UPS says 'It's a patient, not a package,' they really mean it."
Dave Berthold, Vice President of Sales, U.S. Generics Lupin Pharmaceuticals, Inc.
Lupin wanted an efficient provider of warehouse distribution services. More importantly, they wanted a long-term global growth partner that could solve supply chain issues, help meet fluctuating demand and reliably manage inventory while in the warehouse. Lupin imports thousands of pallets annually, mostly by air freight, and they have a low tolerance for delays. Without a ready supply, pharmacists can’t meet patients’ needs, and patients can’t medicate.
In seven weeks, UPS converted Lupin’s entire U.S. supply chain, a process that normally could take up to five months. They moved 5,000 pallets of products in three weekends, with minimal interruption to customers. UPS now warehouses and distributes Lupin’s generic drug inventory, helping to avoid back-orders and delays. Plus, UPS can meet the needs of Lupin’s entire portfolio, from temperature-control to licensed storage. In Louisville, KY, UPS receives trailers with pallets of pharmaceuticals. Products are taken to a special healthcare-licensed distribution centre. As orders come in, UPS quickly picks, packs and ships them. To manage frequent volume swings, UPS leverages a multi-client campus environment and flexible, fully trained distribution staffers to meet the ebb and flow without a hiccup.
For Lupin, UPS can flex to any volume of inbound inventory. Speed to market and reliability improved and Lupin was able to quickly stage new product launches, making them very competitive when new generic drugs receive regulatory approval. With UPS’s infrastructure and expertise, Lupin can proactively manage product staging at strategic points nationwide. UPS also helped Lupin reduce transportation costs by converting 6% of its air volume to ground…at the same speed. That saved $.50 per pound, not small change for a company that ships millions of pounds each year.
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