Modernizing systems is more than just facelifting! The modernization of a company’s internal logistics taking a pharmaceutical company as an example.

Modernizing internal logistics systems is essential to increase productivity and improve quality. In the ever-changing scenario of a globalized economy, updating means surviving. The challenge was to make this process economically viable. Well, Stöcklin Logistics Ltd, which in Brazil is represented by Vast-Besth (phone 55 11-5093 9211), showed its competence in Europe, Mexico and in Brazil, not only planning new installations but also in the modernization field. “The modernization of the internal logistics at Boehringer Ingelheim do Brasil reflects this new investment philosophy, and is an example not only to the pharmaceutical industry, but to industries in general as well”, says Peter Riesterer, Stöcklin’s South America Operation Manager.

Reasons for conveying

The warehousing and traffic of a company’s products affect their final cost, the preservation of their quality, and the length of their shelf life. Therefore, these factors are considered to be measurable requirements for quality and operational cost reduction.

This topic gained significance due to the safety and quality requirements. This does not only apply to the pharmaceutical industry, which, through its validation processes to assure compliance with GMP (Good Manufacturing Practices) determinations, imposes strict requirements regarding quality in logistics, but to all industry sectors. 

The need to maintain a fast and efficient supply flow justifies the measures adopted to modernize, and its benefits largely outweigh the required investment of capital. When one talks about modernization, one talks about profitability.

Changes in systems requirements

Regarding supply availability, flexibility and quality, the market is becoming more demanding by the day. The urgency of modernization is determined by factors, such as: the need to increase performance; the need to increase storage capacity; changes in product volumes, and the resulting changes in the distribution strategy; changes in the market or in the product mix; reduction of inventory and, therefore, the higher turnover and ergonomic improvements; procedures and validation processes, etc.

At the same time, new possibilities allow for a significant improvement in profitability: integration of information technologies (IT); objective increase in the degree of automation, resulting from a constant quality level with increased capacity; higher storage density, and, therefore, a higher volume stored due to the use of stacker-cranes instead of stackers; reduction of power costs due to the application of new technologies; significant reduction of maintenance and operation costs; reduction of the daily workload, etc. 

The importance of planning and of having the client as a partner

To modernize it’s essential to plan in advance. When planning, possible weaknesses and risks and the eventual strategies or procedures for the transition period are to be detected and recognized. It’s necessary to consider whether or not the plant will be fully or partially functional while the project is being completed.  Interruptions, delays in delivery dates or problems regarding the start-up of operations can have fatal consequences to the user.

Besides the supplier’s experience, the project’s success depends greatly on the client’s input. 

Regarding modernization, it’s important to keep in mind that there is no total solution, since all projects are subject to technical and financial restraints. However, it’s possible to find an optimal solution, which takes the client’s experience and reality into account. The key to success lays in a true partnership between the client and the supplier.

Modernization in the pharmaceutical industry :
the Boehringer Ingelheim do Brasil

Stöcklin’s challenge consisted of: increasing the storage capacity by, at least, 50%, by building a vertical warehouse for finished products next to the conventional warehouse for raw-materials; creating a conveying system for raw-materials and finished products that would satisfy the company’s actual and future needs; developing a commissioning request for boxes and fractionated items, with automatic replenishment; establishing an interconnection through conveying techniques between production, warehouse, commissioning of orders and expedition; developing an automatic goods transfer system from the wooden transport pallets to the aluminum ones; establishing an online connection between the warehouse manager and the new yet to be installed host system; creating a system that is fully compatible with the GMP; modifying and expanding the existing shelving system; realizing the modernization while keeping a fully functional plant; supervising the project until the turnkey delivery of the system.  

Things from the past...

Storing raw-materials, primary and secondary packaging materials and finished products in the general storehouse; transporting materials with heavy stackers; commissioning orders through a platform integrated to the conventional shelving system; lack of technical connection of conveying in production, warehousing and expedition. Manual hydraulic stackers carried out the internal transportation to the different areas.

Modernization concept
The planning of the Boehringer Ingelheim do Brasil and Stöcklin concept proved that it was essential to build a new vertical warehouse, since this investment would allow for: a better use of the existing space (which prior to modernization was about 60%) in the conventional warehouse; reusing the warehouse building and shelving; combining manual and automatic operations perfectly in different areas; a better information flow (IT); restructuring the material flow and improving the speed of operational processes.

These concepts brought the solution for the system: automatic pallet deposit in, approximately, 6,000 pallet positions for finished products; automatic connection with the manual handling of raw-materials and packaging materials; automatic connection with central receiving of materials; connection of packaging lines with the warehousing system through the automatic sorting and palletization system; manual handling of finished products with integrated commissioning for customers’ orders; automatic connection of production or packaging with manual handling of raw-materials and packaging material; technical integration of information of all areas in the central computer.  

Achieved goal

Besides the increase in capacity and volume, the technical integration of information and the completion according to the strict GMP validation criteria were also successfully achieved goals.

The solution stands out for its system flexibility and for having a great expansion potential. Not only were the budget and the corresponding profitability observed, but even optimized.

A new tendency

The changing economic environment forces logistical system clients to adapt to the new requirements. Therefore, investments in innovations, such as using existing spaces, offer a real opportunity to adapt companies in a profitable manner to the new requirements and to achieve a short-term capitalization of the investment.

Magazine:  Movimentação & Armazenagem  - No. 123 ­ Nov./Dec. 2000