CASE STUDY

Accelerating Logistics Services Providers Integrations for a Japanese Pharma Company

Accelerating LSP integrations with the Hub by Veratrak

Learn how a leading Japanese pharmaceutical client achieved significant cost savings and streamlined their Logistics Services Providers (LSP) integration development by leveraging Veratrak’s Integration Platform, the Hub.

This case study explores how a proactive approach to this client’s LSP integrations transformed integration dynamics, paving the way for enhanced agility and cost-effectiveness across their global operations.

Customer Profile

Top 20 Global Pharma
£300K per LSP integration
+6 months to complete each integration

Background

A Top 20 Global Pharma company faced significant integration development costs, support costs, and time constraints when building operational interfaces for new third party logistics providers and entering new markets. On average, this client spent £300K per integration, with each project taking six months to complete.

The Challenge

The company aimed to streamline and expedite the process of setting up LSP partners while retaining flexibility to switch providers seamlessly. Their objective was to reduce both the time and cost associated with establishing these integrations.

The Solution

To achieve their goals, the Pharma company collaborated with Veratrak to implement the following strategic actions:

Standardisation with JSON Format:

Leveraging the Hub Platform, the Veratrak team mapped a standard set of EDI operational interfaces into an internal JSON standard, improving partner compatibility and simplifying integration processes for future connections.

Pilot Testing in Two Markets:

The Veratrak team led E2E pilots with LSP partners of the pharma company in France and Germany to measure the efficiency gains of their streamlined integration approach, and to demonstrate capabilities to handle unique scenarios for these markets.

Customised Integration Alerts:

Alongside the pharma business end users, the Veratrak team helped advise alerts and information routing to the appropriate user for each business process at regional and market level.

Key Benefits

The initiative yielded significant improvements, as follows:

Accelerating Logistics Services Providers Integrations

☑️ Cost Savings:

The Pharma company achieved a cost reduction of 42% on average per integration, demonstrating substantial savings on operational expenses such as development, mapping, testing, support.

The team’s work with this client forecasts a €4m cost savings opportunity over a 10 year period.

☑️ Time Efficiency:

The Hub’s pilot demonstrated reducing LSP integration time from an average of 6 months to <3 months. This acceleration allows the client to establish connections with new 3PL providers swiftly and efficiently in line with new market entry and new product approvals driven by the business.

☑️ Increased Visibility:

The Hub platform provided key stakeholders with visibility of potential error scenarios which their current P2P integrations failed to cover, providing business end users with advance alerting to ensure medicine moves along the supply chain to patients.

Conclusion

By adopting a standardised approach and leveraging the Hub to integrate with their LSP global partners, the Pharma company not only slashed costs but also accelerated their ability to onboard new logistics partners and enter new markets.

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Using Veratrak’s Hub to streamline their integration process, they gained the flexibility to adapt to changing business needs quickly. As a result, they are better positioned to enhance operational efficiency and maintain competitive advantage across their markets.

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