Nahdi Medical Company transforms pharmacy retail using Oracle Logistics

Saudi Arabia’s largest pharmacy retailer accelerates distribution and supply chain capabilities with Oracle Transportation and Warehouse Management.

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With Oracle, we managed to drive certain efficiencies after exactly two months of operation—almost five times what we used to drive through the old distribution center—resulting in more than 95% availability across all guest touchpoints.

Eng. Raed Jameel MonagelChief Supply Chain and Business Support Officer, Nahdi Medical Company

Business challenges

Nahdi Medical Company has grown into one of the largest pharmacy retailers in the Kingdom of Saudi Arabia. With roughly 6,000 employees and over 1,150 pharmacies serving more than 140 cities and towns around the Kingdom, Nahdi strives to provide a healthier future for communities.

Nahdi Medical’s order volume jumped from a few thousand online orders per day to more than 20,000 per day during the COVID-19 pandemic. The incredible increase in demand for the retailer’s lifesaving services were putting a severe strain on its logistics operations.

To keep its pharmacies stocked and meet the demands of the communities it serves, the company relies on a fleet of more than 160 trucks dispatched from four distribution centers. Manual shipment planning processes, such as spreadsheets and wall maps, resulted in a limited capability to manage shipment execution. The company needed to automate shipment planning, improve truck utilization, and accelerate proof of delivery evidence.

Our network, online and supply chain capabilities enable us to provide 97% of the Saudi population with direct access to health and wellness products and services.

Khalid TadlaouiVice President of Information Technology, Nahdi Medical Company

Why Nahdi Medical chose Oracle

Oracle’s innovation in the cloud and demonstrated leadership in the market led the company to choose Oracle as a partner to fulfill its mission. Nahdi Medical selected Oracle Logistics, which includes Oracle Transportation and Oracle Warehouse Management systems, to support its state-of-the-art distribution center in Jeddah. Company leaders were impressed by the ease of use, support, and scalability of Oracle Logistics, part of the Oracle Cloud Supply Chain Management suite of applications.

Oracle Cloud Transportation and Warehouse Management services have brought Nahdi Medical real-time visibility into supply chain and compliance. The company has replaced manual processes with a streamlined value execution chain to support growth and competitive advantage.

Results

In order to curb the effects of the pandemic and modernize its supply chain processes, Nahdi Medical implemented Oracle Transportation Management and Oracle Warehouse Management to optimize its fulfillment operations, streamline its delivery services, and tap into real-time data throughout the supply chain.

Oracle Logistics enabled Nahdi Medical to optimize its operations and provide benefits for the business, its employees, and customers. The company improved visibility into its supply chain from the thousands of products that leave the distribution center to the time that they arrive to their guests.

The company increased its vehicle utilization rates by an average of 5% to 10% through fully automated shipment planning and tracking using Oracle Cloud Transportation Management (OTM). OTM led to greater stock availability of products in its pharmacies through more efficient deliveries to more than 1,150 stores in over 140 cities. The route optimizations  in OTM cut the time for shipments and lowered the cost of operations.

Nahdi Medical increased the speed of communicating proof of delivery by an average 10 hours per shipment and replaced paper copies of bills of lading with OTM’s mobile capabilities. The greater efficiency improved compliance with Saudi Food and Drug Authority regulations, provided greater visibility into retail shelf availability, and led to a more accurate financial forecast.

The company delivers about 50,000 cargo shipments a day using Oracle Warehouse Management. Empowered with reliable data, Nahdi can track its inventory and evaluate the business performance on a granular level. Moreover, Warehouse Management’s automation system enhanced order cycle time with higher productivity, accuracy, and ultimately better quality to its guests. Today, the company efficiently manages more than 400 suppliers for the vast number of products that require special attention and handling, improving customer service standards.

The system enhancements also improved the quality of work for employees. The company saw a 96% satisfaction rating from pharmacists only two months after implementing Oracle Logistics, and an 80% satisfaction rating from its drivers. Pharmacists were happy to receive shipments from distribution centers in a timely manner, and drivers benefited from OTM’s mobile application and improved route planning.

Partners

Nahdi Medical Company selected U.S.-based Inspirage as implementation partner because of its deep expertise in supply chain execution and knowledge of Oracle Logistics applications.

Published:15 август 2022 г.

About the customer

Nahdi Medical Company launched the country’s first  state-of-the-art smart distribution center. Covering an area of 250,000 square meters, the facility features temperature-controlled logistics, a flexible distribution center, and automated order fulfillment using cutting-edge technology and systems.