Challenge
A leading specialty pharmacy was struggling with inventory inefficiencies and production delays caused by managing ambient cold packs. Excess storage space was consumed by inventory; resources were tied up in dead stock, and production schedules were constantly disrupted. These challenges were impacting operational costs and limiting the pharmacy’s ability to scale output for critical GLP-1 medications.
Solution
Veritiv partnered with the pharmacy to design a streamlined cold chain packaging solution tailored to daily production needs. Instead of maintaining large quantities of ambient inventory, Veritiv implemented a just-in-time delivery system for pre-frozen ice packs calibrated to match each day’s production requirements. This approach was supported by a comprehensive Total Cost of Ownership (TCO) analysis, which identified opportunities to:
- Reduce storage and handling expenses
- Eliminate dead inventory costs
- Repurpose existing assets to improve operational efficiency
Results
The impact was immediate and measurable:
- 20% reduction in material costs, improving overall profitability
- Significant improvement in cash flow through inventory optimization
- Increased warehouse space
- Increased daily GLP-1 output
By aligning packaging logistics with production demand, Veritiv helped the pharmacy transform its cold chain operations into a lean, cost-effective system that supports growth and sustainability.
