New eyes on transport created a smart setup – and avoided price increases

How can a new transport agreement ensure better processes – and keep prices stable when vital medicines need to be delivered to pharmaceutical wholesalers and hospitals? That was the question when Nomeco, the largest pharmaceutical distributor in the Nordic region, contacted TransportRådgiverne.

The Danish company Nomeco delivers medicines daily to Danish pharmacies, hospitals and retailers, as well as pharmaceutical wholesalers throughout the Nordic region. So when Nomeco consolidated its three Danish warehouses for its 3PL services into one new modern logistics warehouse, the critical eye naturally fell on transport. How could Nomeco both optimise its processes and consolidate its finances through a new contract with the transport company?

Tender or negotiation?
Nomeco was in the unusual situation of having used the same carrier for decades. So the question was whether the task should now be put out to open tender – or whether Nomeco should explore the options with the carrier and negotiate a completely new agreement instead.

However, they had no doubt that both scenarios required in-depth knowledge of the transport market and resources to drive the process forward. That is why Nomeco's Director of HealthCare Logistics, Søren Vesti Esbensen, decided to contact TransportRådgiverne.
Søren Vesti Esbensen, Director of Nomeco HealthCare Logistics, says:

As the largest distributor of pharmaceuticals in the Nordic region, we purchase transport services worth millions of Danish Kroner every year. So we were aware that a new transport agreement would require new professional input and more resources than we could muster ourselves. That is why we turned to TransportRådgiverne, and we have not regretted it for a moment.

Special conditions for the transport of medicinesNomeco was generally satisfied with its carrier, so the company decided to negotiate a new contract. However, an agreement on the transport of medicines is not just a question of the price of getting from A to B. The EU's guidelines on Good Distribution Practice (GDP) set a wide range of minimum standards covering everything from temperature monitoring to certifications, quality assurance and training of the carrier's employees. TransportRådgiverne was quick to understand the special circumstances, says Søren Vesti Esbensen.

For us, it made a difference that TransportRådgiverne had both industry-specific insight and experience with market standards in general. That combination made us feel confident in putting a negotiation mandate in their hands. In addition, it was an advantage to have a new negotiation team so that we weren't stuck in the past but could start with a clean slate.

On target with both finances and processes

The contract negotiations themselves took four months. Prior to this, TransportRådgiverne had prepared a complete tender document, which provided a very precise basis for the final agreement. As a result, Nomeco also achieved its financial ambition of keeping prices stable. During the negotiations, TransportRådgiverne took the lead in a process to ensure optimal processes, both in terms of internal transport procedures and in relation to the new central warehouse. This process resulted in a complete update of Nomeco's transport SOPs (Standard Operating Procedures) and a detailed schedule for production and collection at the new warehouse. Among other things, transport distances and efficient handling were taken into account.

The new warehouse gave us the opportunity to think outside the box, and TransportRådgiverne demonstrated their expertise throughout the process. We ended up with a model that is optimal for our clients, their customers and Nomeco,

About Nomeco
Nomeco is the preferred pharmaceutical wholesaler for pharmacies, a supplier to hospitals and a strategic service partner to the pharmaceutical industry. Nomeco specialises in healthcare logistics.

The company ensures that Danes always have timely access to medicines. This is achieved through a value-creating partnership with pharmacies and the pharmaceutical industry – a partnership based on security, high ethics and trust. Nomeco develops in close contact with the market and authorities, and this development is based on a solid foundation of knowledge and values. Nomeco is a Danish company with deep roots in the pharmaceutical industry, and at the same time, the company is part of the pan-European PHOENIX Group.

5 good reasons why Nomeco recommends TransportRådgiverne

• TransportRådgiverne has extensive insight into and experience with the transport market and understands the special conditions for GDP pharmaceutical transport.
  
  
• TransportRådgiverne knows what requirements we can reasonably impose in terms of both quality and price structure.

• TransportRådgiverne has the weight to negotiate on our behalf.
  
  
• TransportRådgiverne is able and willing to challenge us, even on the details.
  
  
• TransportRådgiverne provides a highly qualified team that gives us expert transport advice at a high level and ensures that the project progresses smoothly.