Case Study: Pharmaceutical Manufacturer's Rx For Shifting Market Forces: Strategic Outsourcing

Novartis knew that partnering with a third-party logistics provider (3PL) could offer many advantage, including a supply chain infrastructure that could adapt to marketplace changes while reducing cost. In addition, other business units in the company had successfully worked with 3PLs to achieve strategic goals.

This forward-thinking company recognized that changing industry dynamics might require a major shift in supply chain strategy in order to in provide needed flexibility. Novarti's in-house warehouse and distribution operation, centralized at its U.S corporate headquarters on the east coast, was designed only to support a wholesale market strategy.

It decided to move forward with 3PL outsourcing with Exel. Exel had a well- established national and global infrastructure, extensive experience with other life science companies, IT expertise, reputation for excellent customer service, and proven ability to deliver cost savings.