Oracle Customer Success — Nahdi Medical Company

Nahdi Medical Tightens Shipment Planning with Oracle SCM Cloud

Oracle Transportation Management Cloud Service has brought us real-time visibility into supply chain and compliance. We have transformed shipment planning and compliance by replacing manual processes with a streamlined value execution chain to support growth and competitive advantage.

— Sayed Al-Sayed, Supply Chain Applications Department Manager, Nahdi Medical Company

Nahdi Medical Increases Pharmacy Fleet Utilization Rates by an Average of 5% to 10% and Speeds Delivery Tracking with Oracle

Nahdi Medical is a leading retail pharmacy chain that manages and operates a nation-wide network serving about 85 million consumers annually in more than 130 cities and villages across Saudi Arabia, making it one of the most prevalent and fastest growing companies in the region. As the company continues to grow their pharmacy retail and services footprint, Nahdi relies on more than 10,000 employees to keep customers returning. The company prides itself to be ‘5 minutes away from 80% of the community’.

To keep its pharmacies stocked, the company runs a fleet of more than 160 trucks from four distribution centers. Previous manual shipment planning processes such as spreadsheets and wall maps resulted in limited capability to manage shipment execution. For continued expansion the company needed to automate shipment planning, improve truck utilization, and accelerate proof of delivery evidence.

Challenges

Replace manual shipment planning methods with an automated system for improved truck utilization, route optimization, and tracking of pharmacy deliveries
Get faster, more reliable, and compliant proof of delivery sign-off for medicines, beauty and baby products, and everyday essentials

Ensure maximum product availability in pharmacies to meet daily demand, and increase satisfaction of pharmacists, drivers, and consumers
Avoid penalties for non-compliance through enhanced control of shipment delivery and reverse logistics

Grew vehicle utilization rates by an average of 5% to 10% through fully automated shipment planning and tracking using Oracle Transportation Management Cloud Service, leading to greater shelf availability of products in pharmacies across Saudi Arabia through more efficient deliveries from distribution centers to more than 1,000 stores in over 100 cities
Increased the speed of communicating proof of delivery by an average 10 hours per shipment of pharmacy goods, replacing paper copy bills of lading with Oracle Transportation Management Cloud Service’s mobile capabilities, enabling tighter compliance with Saudi Food and Drug Authority regulations, and leading to greater visibility of retail shelf availability and more accurate financial forecasting

Achieved a 96% satisfaction rating from pharmacists for every shipment received during the first two months of going live with Oracle Transportation Management Cloud Service, and an 80% satisfaction level from drivers using the new mobile solution for track-trace, proof of delivery, and route planning
Obtained complete visibility of reverse logistics flow by instigating mobile data entry by pharmacists and drivers of damaged, expired, or recalled products, strengthening compliance and alerting supply chain teams on time to replenish inventory
Avoided potential chain of custody—losses amounting to billions of Saudi Riyals by automating evidence of proof of delivery, eliminating overlooked or mislaid pharmacist delivery sign-off
Improved route planning and tracking of trucks delivering outbound finished pharmacy store products and inbound supplies, giving supply chain teams real-time visibility of products in transit and the ability to mitigate the impact of any problems that could arise
Reduced total cost of ownership by using Oracle Transportation Management in the cloud, integrated with Al Nahdi’s Oracle Retail and Demantra demand forecasting applications for optimizing the supply chain of medicines, cosmetics, everyday essentials, and beauty, health, and baby care items
Enjoyed significant indirect cost savings through process optimization and more efficient utilization of supply chain resources across the organization, upgrading operations with cloud processes for pharmacy order management, shipment planning, shipment execution, and fleet management
Used My Oracle Support to rapidly resolve any technical issue, and worked with an Oracle Customer Success Manager to ensure that implementation moves as smoothly as possible

When it comes to supply chain logistics, Oracle Transportation Management Cloud Service is the world’s leading solution. Our choice was simple because it integrates with Oracle Retail and, being a cloud solution, was fast to implement versus an on-premises application. There is also no customization required.

— Sayed Al-Sayed, Supply Chain Applications Department Manager, Nahdi Medical Company

About Nahdi Medical Company

Headquarters

Jeddah, Saudi Arabia

Employees

10,000

Nahdi Medical Company

In 1986, Sheikh Abdullah Amer Al Nahdi acquired two retail pharmacies in Jeddah. By providing better accessibility to prescription medicines and over-the-counter drugs—presented in bigger and well-planned stores with friendly customer service—Nahdi Medical has redefined the retail pharmacy market in Saudi Arabia. By 2004, the Nahdi Medical Company had grown to 200 outlets, a milestone figure at the time. Today Nahdi Medical serves 85 million customers annually in more than 125 cities in Saudi Arabia.

Partners

Nahdi Medical selected US-based Inspirage as implementation partner because of its deep expertise in supply chain execution and knowledge of Oracle Transportation Management applications. Inspirage implemented the solution in 14 weeks, with 75 users including drivers at the Riyadh Distribution Center first going live with OTM Shipment Planning. Full Oracle Transportation Management Cloud Service mobile capabilities were rolled out in Riyadh and Jeddah as of January 2017. Execution included integration with Oracle Retail solutions including Demantra for demand forecasting, plus Inspirage’s integrated mobility solution for logistics linked with Global Positioning System (GPS) tracking and the real-time location platform of www.here.com.