The How

Valcon worked with Takeda to define how to transform their complex distribution and took over the project management to secure a fast and smooth implementation.

As Takeda needed more transparency in their distribution performance, our first step was to improve their performance management. To avoid a long and painful change process, the key success criteria for the project were speed and momentum.

Takeda’s new distribution set-up was fully implemented in the course of one year. Most of the complexity and costs were due to the large number of logistic partners and agreements, so the new simplified distribution set-up certainly looks very different.

Takeda Pharma went from having 38 local distribution centres to four regional distribution centres.  Their 16 different logistic partners with 21 different contracts became three providers with one standard contract.

The result is a more flexible, transparent and easy-to-control distribution set-up and one that is much more cost effective – Takeda has reduced their total distribution costs by more than 10%.

A significant reduction of complexity in the distribution set-up took it from good to excellent.

Benny Madsen Partner, Valcon