"During the transition, UPS moved 5,000 pallets of products in three weekends. It was an enormous undertaking with minimal interruption to our customers. The conversion was tremendous."
The Challenge
One-third to one-half of all generics come from India. Lupin Ltd. is one of the five largest global pharmaceutical companies on the subcontinent, imports thousands of pallets of generic pharmaceuticals annually, mostly by air freight. Lupin has low tolerance for delays. Without a ready supply, pharmacists can't meet patients needs.
Lupin was seeking an efficient provider of warehouse distribution services that could also be a long-term global growth partner that could solve supply chain issues, help meet fluctuating demand, and reliably manage inventory while in the warehouse.
The Solution
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 helps 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 center. 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.
The Results
Because of our ability to flex to any volume of inbound inventory, Lupin's 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 now proactively manage product staging at strategic points nationwide.
We 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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