Better distribution results in better sales for Adcock Ingram

2014-03-12 09:39
The improved service levels at Adcock Ingram’s distribution centres are being complemented by the company’s owner-driver-scheme, which is an Adcock Ingram enterprise development initiative.

Adcock Ingram’s recent upgrade of its distribution centre in Cape Town is paying dividends as customers enjoy ‘next day’ delivery across the product range.

As the only locally-based pharmaceutical company doing its own distribution, Adcock Ingram has distribution hubs in Midrand, Cape Town, Durban and Port Elizabeth. Recent expansions at the Midrand and Cape Town sites has given the company not only increased capacity and improved service levels but also earned regulatory approval from the Medicines Control Council and the SA Pharmacy Council.

“The expansion in Cape Town, which cost R20-million, was a necessity to ensure dependable service levels to our wide customer range, which includes pharmacies, hospitals, wholesalers and Critical Care home-based patients,” says Jurinda Lubbe, manager of the distribution centre.

The upgrade of the warehouse allows better stock cover and thus improved service levels. As a result, the distribution of the complementary medicines, which was previously outsourced and done from Johannesburg, has been brought in-house. There is capacity for future expansion, some of which is currently being utilised for the products of principles and other manufacturers.

“We are delighted with our progress since bringing the distribution of our complementary medicines back in-house,” says Lubbe. “As with the rest of our product ranges, we are now delivering the complementary medicines to pharmacies and hospital depots on a ‘next day’ basis and as a result have seen a marked increase in sales. I am gratified to have customers compliment us on our speedy delivery times and accurate order fill,” she says.

An expanded workforce, better systems and an increased customer focus have all contributed to achieving the improved service levels. These achievements are being complemented by the company’s owner-driver-scheme, which is an Adcock Ingram enterprise development initiative, offering drivers the opportunity to own and run their own businesses rather than being directly employed by the company.

The high standards maintained at the distribution centres are applicable to all aspects of the business. The Adcock Ingram distribution centres in Cape Town and Port Elizabeth were jointly the proud recipients of the Marsh Africa floating trophy for 2013, for the best performing operations in compliance with environmental controls.

Due to the success at the Cape Town operation, there are plans afoot to bring the complementary medicines distribution in-house in Durban and Port Elizabeth.


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