Logistics

Under the conditions of intensive sales volume growth and increasing competition it becomes a matter of high priority for the distributor to quest for the new forms of optimization of market activities and cost reduction in this sphere. In this regard, the major tasks of the Company's Logistics Department are as follows:

Structuring the distribution chain with the optimal dislocation of the distribution centers (warehouses) and other members of the logistics distribution chain;

Maintaining quality standards for logistics services;

Freight forwarding and transportation of the finished product;

Warehousing, storage and materials handling of the finished goods in the inventory system;

Logistics costs analysis and logistics services pricing.

The system of goods distribution which is well-organized throughout the overall distribution chain, allows significant reducing of costs for providing services to the consumer all the way through, from start to the completion, contributing to active reduction of inventory, facilitating the process of obtaining information, enhancing the level of service.

The structure of OOO Pharmcomplekt distribution chain comprises the central warehouse and five regional warehouses.

The central warehouse is located in the city of Nizhny Novgorod. The total area of the warehouse is 6,000 square meters. The structure of the warehouse includes pharmaceutical warehouse, providing high-quality warehousing, storage and materials handling for pharmaceutical products, the customs storage area designated for safe goods storage prior to customs clearance, and the warehouse of foreign economic activities, for products storage prior to shipment to other countries.

The shipment of goods is carried out from the central warehouse to the regional warehouses, the Company's wholesale customers, pharmacy chains and retail outlets located in Nizhny Novgorod Oblast, Kirov Oblast, Chuvash Republic, the Republic of Mordovia, Vladimir Oblast, Ivanovo Oblast, Kostroma Oblast, Kazan, Penza Oblast, Yaroslavl Oblast, etc. The service area of the Central warehouse comprises more than 800 km.

The Regional warehouses are located in the cities of Krasnodar, Voronezh, Ufa, Yekaterinburg and Novosibirsk. The service area of the regional warehouse is more than 800 km, which is achieved due to location of the distribution platforms within 400 km distance from the warehouse.

All the warehouses components of the Company's distribution system are represented in conformity with up-to-date pharmaceutical and technological requirements, making it possible to provide high-quality storage for pharmaceutical products and materials handling. Owing to optimal locations of the regional warehouses, the geography of products sales has significantly expanded, alongside with a slight increase of logistics costs. Permanent enhancing of the storage technology allows maintaining of the high level of logistics service quality.

The delivery of goods is provided by means of outsourcing. The Company cooperates exceptionally with reliable Suppliers of transport services which guarantees proper quality of delivery.

In order to optimize and improve the logistics services quality, the Logistics Division permanently analyses the logistics costs.