In the high-stakes world of pharmaceutical distribution, precision and efficiency are paramount. Febelco, Belgium’s largest pharmaceutical wholesaler, recognized an opportunity to enhance their warehouse operations, which had long relied on traditional, paper-based processes. This realization marked the beginning of a transformative journey, with Yitch guiding Febelco toward a future defined by cutting-edge technology and streamlined operations.
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Identifying opportunities for improvement
For decades, Febelco's warehouses operated using well-established, paper-driven methods. Martine Anthoon, a seasoned Febelco-employee with over 23 years of experience, recalls her early days at Febelco fondly. “In the beginning, we were bound to paper for nearly everything, from noting down product locations to handling dispatch notes. It was a straightforward process, but as the company grew, it became clear that there was room for improvement.”
While these paper-based processes had served the company well for many years, they also presented certain limitations. As Febelco expanded, the potential for inefficiencies grew, particularly in areas like put-away, replenishment, and picking. The reliance on manual documentation sometimes led to delays or minor errors, which, while manageable, suggested that more efficient methods could be explored.
“Our operations were becoming more complex as we expanded,” explains Filip De Breucker, Director of Operations at Febelco. “We saw an opportunity to enhance our processes by moving away from manual methods and leveraging technology to keep pace with growing demand.”
A holistic approach to warehouse optimization
Recognizing the potential benefits of a technological upgrade, Febelco enlisted the expertise of Yitch, known for its innovative solutions in automation, digitalization and data-driven insights. The collaboration began with a detailed analysis of Febelco’s operations, followed by a strategic roadmap to implement a Warehouse Control System (WCS) that would optimize their processes.
Step-by-step transformation
“We started with workshops with both management and order picking operators to understand Febelco’s specific challenges and needs,” says Sander Verbruggen, BU Manager Automation at Yitch. “From there, we moved on to strategy development and technology selection, ensuring that the chosen solutions were perfectly aligned with Febelco’s operational goals.”
- Workshops and strategic planning
Yitch conducted a series of workshops with Febelco's key stakeholders to map out existing processes and identify areas for improvement. This collaborative approach ensured that everyone had a clear understanding of the objectives and the benefits of the impending changes. - Technology selection
Based on the insights gained, Yitch recommended the implementation of a WCS tailored to Febelco’s needs. This system was designed to integrate seamlessly with their existing infrastructure while offering new capabilities such as real-time tracking, automation, and advanced analytics. - Change management and training
Understanding the importance of acceptance from the workforce, Yitch provided extensive support throughout the change process. Training sessions were held to familiarize employees with the new system, including the use of innovative tools like wearable wrist scanners. - Phased roll-out
The WCS was implemented in stages to minimize disruption. The initial focus was on ensuring that inventory levels were accurately documented, and product locations were correctly logged. This set the foundation for improvements in picking and cycle counting, which are critical for maintaining operational flow.
The result: tangible improvements
The transformation resulting from the new WCS was profound. The integration of real-time data tracking, combined with wearable technology like the wrist scanner, drastically reduced errors and improved efficiency.
“Introducing the wrist scanner was a significant shift from our old ways,” Martine reflects. “At first, it was a bit overwhelming, but with the training, we quickly adapted. It’s much more efficient, and the risk of error is almost non-existent now.”
“To me, the biggest advantage lies mainly in the efficiency gains. Today we can map data that we didn't see before, which means we can now make constant optimizations, ultimately resulting in better service to customers. ,” says Joeri Mels, Maintenance Project Manager at Febelco.
“The biggest gains were seen in our put-away and replenishment processes,” concludes Filip De Breucker. “Accurate documentation and real-time location tracking have streamlined these operations, leading to faster picking times and fewer mistakes.”
A blueprint for success
The digital transformation at Febelco delivered several key benefits, according to Yitch:
- Enhanced efficiency
Automation and real-time tracking significantly reduced the time needed for critical operations like picking, replenishment, and put-away. - Error reduction
The elimination of paper-based processes and the adoption of wearable scanners led to a drastic decrease in human error, improving overall accuracy. - Improved inventory management
With better documentation and real-time updates, Febelco could maintain optimal inventory levels, reducing the risk of stockouts or overstocking. - Employee empowerment
Comprehensive training and user-friendly technology helped employees transition smoothly, leading to higher productivity and job satisfaction.
Lessons learned / Looking forward
Febelco’s journey with Yitch provides valuable insights for any organization looking to modernize its warehouse operations. According to Sander Verbruggen, the keys to a successful WCS implementation are thorough planning, involving all stakeholders early in the process, and providing continuous support throughout the transition.
“Investing in the right technology is crucial,” Verbruggen advises. “But it’s equally important to ensure that your team is fully onboard and equipped to make the most of these tools. A phased approach, with ongoing optimization, is essential for sustaining the benefits in the long term.”
As Febelco continues to grow, its investment in technology and its partnership with Yitch have positioned it well for the future. The case of Febelco is a perfect example of the power of digital transformation in enhancing operational efficiency and maintaining a competitive edge in the pharmaceutical industry.
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