Phoenix Medical Supplies Limited

The challenge

The group is large and complex, being made up of nine different brands, including Phoenix Healthcare Distribution, Rowlands Pharmacy, PSUK and Numark, employing more than 6,500 people, operating some 4,500 pharmacies both owned and independent to deliver 262 million units of pharmaceutical product via 13 depots across the UK every year.

Our goal was to help PHOENIX make deliveries cost-effective and cut carbon emissions as much as possible.

To reach this goal our team spent time with the PHOENIX operations team and analysed orders, deliveries and value of goods delivered. At the start of our project Lyreco had made more than 21,000 deliveries across the PHOENIX network across 12 months in 2019/20 with orders averaging £58 a time. Using our Carbon Emissions reporting tool we were able to see that the delivery process was creating 113 tonnes of CO2 due to an excess of deliveries made.

There was a clear opportunity to improve through some practical changes as well as some communication and encouraging PHOENIX teams to change how and when they were ordering.

The solution

We recommended a minimum order value (MOV) that was to be implemented across the network. It was crucial that any MOV applied would prove practical, workable and achievable for the PHOENIX. As each Phoenix brand had differing requirements, we agreed on varying minimum order values for each division.

Due to Phoenix’s vast network of pharmacies, this meant a huge internal communications piece was needed to help bring teams on the journey to greater efficiency.

Alongside the MOV changes, which was applied via the SAP-powered Lyreco Webshop, we provided information and educational messaging about why the changes were taking place, including saving the company time and money, but also the positive impact on the environment by making fewer deliveries. This ensured that all team members were well-briefed, and it was relatively simple to implement a new sales protocol across a 4,500+ strong network.

The results

Although only implemented recently, the impact has been profound, with the number of deliveries reduced by a third. There have been 7,966 fewer deliveries with the average order value is now £88. This has seen carbon emissions cut by a staggering 37 per cent, or around 42 tonnes of CO2 less a year.

Services provided

• Workplace solutions service to all UK locations
• Bespoke replenishment
• Stocking and logistics support for Phoenix owned print.

‘’In line with our environmental goals we were looking at ways in which we could reduce our impact on the environment and at the same time drive efficiency through our retail estate. Working closely with Lyreco and using the data they provided gave us an understanding of what we needed to do what improvements that would deliver. Once agreed, Lyreco were able to apply the required changes and support us with the messaging to our business.’’

Anna Mills
Head of Indirect Procurement
Phoenix Medical Supplies Ltd