Parcel - August 2008 - (Page 11) was completed, I was asked to join the Operations department full-time. I was given the role of customer fulfillment, which was responsible for managing the 3PL relationship. Once that was operating smoothly, my role expanded to include customer service and, eventually, demand planning.” The Perfect Order Whether you use UPS or FedEx, the product is going on a small package line, moving at high speeds on conveyer belt, so your packages have to be sturdy. We ship glass bottles, so when that breaks, it causes a lot of problems.” The packaging changes that occurred as a result of this collaboration with UPS dramatically improved the packages’ durability in transit. “Getting the product to arrive in perfect condition is so important — I can’t stress that enough,” she notes. “Whether because of temperature issues or because of damages in the supply chain, it’s an issue that we continue to face, since Bracco’s product is liquid and susceptible to freezing.” In 2006, Cox implemented a solution by which Bracco could determine how to ship the products to destinations that were in a freezing temperature. In this new program, Bracco purchased weather data from Weatherbug.com. “We load the low temperatures by ZIP Code into our system, and we adjust the shipping method for each customer every day based on the customer’s ZIP Code temperature. This allows Bracco to expedite product to destinations experiencing low temperatures while shipping ground to customers in locations with above freezing temperatures,” Cox shares. “We ended up saving $350,000 the first winter.” The customer service side of her position is one that Cox highly values. Both she and Bracco understand the importance of satisfied customers, and it was that mindset that led to the development of the Perfect Order System. “To us, the perfect order is one processed electronically from order placement to payment receipt. It’s an order that ships cleanly and perfectly every time, arriving at the customer’s location in one piece and on time. If you can do all this electronically, it works perfectly for both the client’s company and for Bracco.” To achieve this perfect order, there are 10 elements that are measured. Bracco works in collaboration with SMI (Strategic Marketplace Initiative) Forum on the Perfect Order pilot. In this pilot program, Bracco works with one of its customers to measure and attain perfect orders. The data elements that define the Perfect Order are as follows: • Order is submitted from the customer via EDI 850 • Order is delivered to the customer on time • Order is delivered to the correct location • Order arrives without any damage • Invoice has the correct price • Order is delivered complete (Order Quantity vs. Received Quantity) • Invoice is sent to the customer via EDI 810 • Customer submits the payment for the invoice via EDI 820 • Customer submits payment on time • Customer submits payment in full Each order that meets all of the above criteria scores 100%. Bracco meets with the customer to review the monthly score and discusses methods to improve the process. “In March of 2008, Bracco achieved four out of six perfect orders and a monthly average of 97%,” Cox shares. “We are continuing to drive toward perfect months.” If the company is easy to do business with, customer satisfaction and loyalty will increase. A Patient, Not a Package Dealing with pharmaceuticals necessitates that certain measures must be taken in order to ensure that the package arrives on time, in one piece and in the right condition. Cox notes that as long as an order is received by 4:00 PM, all of Bracco’s orders are shipped that same day, and they reach the entire US within three days. “In pharmaceuticals, having a short turnaround time is beneficial for the patients,” she comments. “We really try and remember that it’s a patient, not a package.” But the packaging is still a crucial element. “We worked with UPS to change packaging,” Cox recalls. “For us, for packaging purposes, it was more than just trying to prevent damages. www.PARCELindustry.com While these specific challenges may be unique to the pharmaceutical industry, Cox notes that there are many issues that plague all parcel shippers, regardless of their product. “Customer service is such a big one,” she explains. “The biggest challenge is getting others to think the way that you think. Bracco has several core values, and that includes a very high level of customer satisfaction and orientation. And we need people to understand that we strive for perfection. Continuously driving any organization to say that 99% isn’t good enough is very difficult. But when they finally move to the mindset that you’re constantly striving for perfection, it ends up making the whole industry and organizations better.” Bracco Imaging S.p.A. is one of the world’s leading companies in the imaging agent business, with products sold in over 80 countries. Bracco Diagnostics Inc. is the US subsidiary of Bracco Imaging, which is headquartered in Milan, Italy. Bracco Imaging is a subsidiary of Bracco S.p.A, holding company of the Bracco Group, which also markets Ethical and OTC pharmaceutical products in Italy as well as Advanced Medical Technology systems on a world wide basis. The Bracco Group offers diagnosis services through the Milan-based Centro Diagnostico Italiano (Italian Diagnostic Center). August 2008 11 http://Weatherbug.com http://www.PARCELindustry.com
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