Page 46 - Case Study Annual 2015

LAA 2015 Silver

Bausch & Lomb / Imperial Health Sciences

Seeing clearly for thousands

When Valeant Pharmaceuticals International acquired vision care company

Bausch & Lomb, it was faced with the complex challenges that mark this testing

pharmaceutical category, distributing an immense product range

through optometrists, retailers and pharmacies, and including surgical

products and equipment.

Bausch & Lomb’s product range includes
contact lenses that are distributed through
optometrists; lens care and solutions that are
sold through retailers and pharmacies; and
surgical products and equipment, including intraocular
lens implants.

The Bausch & Lomb infrastructure was not equipped
for the logistics and distribution challenges associated
with this immense product range. For the one condition
of astigmatism, for example, are some 350 contact lens
prescriptions, depending on the patient’s specific needs.

The problem place to take in 30 000 Bausch & Lomb SKUs and go
live with a full, end-to-end solution for Bausch & Lomb,
Focused on developing and marketing a range of from order to debt collection. Imperial Health Sciences
professionally endorsed healthcare products to South usually runs at some 7 500 active SKUs in total.
Africa and other selected African countries, Valeant
Group was well placed to grow the product range The solution
and create demand for Bausch & Lomb’s products, but
current infrastructure was not equipped for the logistics Since vision care is a completely new and different
and distribution challenges associated with this vast product set for Imperial Health Sciences, a new division
product range. was established to meet Bausch & Lomb’s needs.

These challenges include the fact that Bausch & Infrastructure
Lomb’s product range is immense. Exacerbating this
challenge is the fact that some surgical lens product items The new, customised infrastructure that was developed
are serialised; consignment stock must be efficiently to accommodate Bausch & Lomb’s 30 000 SKUs in a
managed; and with Bausch & Lomb’s products going new 600 m2 area at Imperial Health Sciences includes
into retailers, pharmacies, optometrists, eye specialists innovative new racks and plastic shelf containers with
and hospitals, there are multiple distribution channels. adjustable dividers, providing for the storage of many
small units. They ensure easy access for fast and efficient
Faced with inventory management problems, stock batch picking, optimise space and ensure operational
write offs, expiring consignment stock, back orders that efficiency. The unique racks and shelves were designed
could not be fulfilled and call centre inefficiencies that by Resolve Capacity. The build of the new warehouse
were resulting in a high rate of abandoned calls, Valeant started on 4 August 2014 and was completed on
needed a different solution. The group partnered with 10 October 2014.
Imperial Health Sciences, Africa’s leading partner in the
healthcare supply chain, in order to turn around Bausch Stock Move
& Lomb South Africa, and transformed the operation
into a successful, efficient profit centre. Imperial Health Sciences moved approximately
24 000 SKUs in 10 days. Dedicated checking teams
Imperial Health Sciences’ greatest challenge was were placed on site at the Bausch & Lomb warehouse
meeting the testing time frame. In just three months, the
company had to have the infrastructure and systems in

44 the logistics news case study annual 2015