JDA Warehouse Management to the rescue
Written by John Bailey, JDA’s Vice President of Solutions Consulting
Case study: Teva Logistics and JDA Warehouse Management
The company supplies more packs of medicines to the National Health Service than anyone else, making it one of the biggest pharmaceutical companies in the UK. Teva is part of Israel-based Teva Pharmaceutical Industries Ltd, which is among the top 15 pharmaceutical companies in the world.
Enable pick-rate accuracy, quality control and regulatory compliance when fulfilling an average of 140 orders — or 9,200 carton picks — on a daily basis.
• JDA Warehouse Management
• JDA Consulting Services
• JDA Support Services
• Increased pick-rate accuracy in excess of 99 percent
• Increased dispatch per shift volumes
• Enhanced customer service
As a major supplier of pharmaceutical products to the UK health service, Teva UK Limited adheres to stringent quality procedures in order to safeguard the integrity of its stock, tracking products both by EAN number and batch number. Stock must be kept in temperature-controlled conditions and in an environment that meets the highest standards of cleanliness.
Due to the growing complexity and scale of its business, Teva decided to build a new logistics center that would support its increasing volume and provide new ways to service its customers.
The company sought a warehouse management solution, with advanced features such as automated storage and retrieval, pick by light, a powered conveyor and a paperless operation, that would enable it to increase efficiencies, save costs and improve service in the new facility.
After evaluating eight technology providers, Teva selected a warehouse management solution from RedPrairie, now a part of JDA Software, due to the company’s strong partnership and experience in the pharmaceutical industry. The warehouse management solution enables Teva to optimize all of its processes — from goods-in to customer dispatch — as well as trace inventory across the supply chain.
Creating a Premier Logistics Centre
Today, Teva’s operation includes storage of more than 24,500 pallets, of which 2,808 are controlled in a fully automated high-bay area. Conveyor automation is used to move cases, picking totes and cartons to the picking areas, onto the packing stations and finally into the shipping dispatch lanes and loading areas. Incoming goods, primarily from Eastbourne, Sussex and Teva’s European manufacturing sites, must be weighed, measured and cubed, then positioned in the correct storage or pick location by JDA Warehouse Management. Precision and quality control are critical.
From goods-in, stock must be accurately moved to the high-bay area, then transferred to either the adjacent automated storage and retrieval system facility or to the pick and drop front location for full-pallet picks by crane, which either go straight to dispatch, or to the item pick area.
Teva’s customer order lead time varies between one and five days. A next-day emergency delivery service is offered, mainly for hospitals. The company processes approximately 140 orders daily, with total pick volumes averaging more than 9,200 carton equivalents.
Maintaining a consistent process is critical to the company’s quality control, as multiple products must be inspected and a final automatic weight check is calculated for each completed carton.
Achieving Maximum Efficiency
Teva implemented JDA Warehouse Management to ensure a high level of stock and dispatch accuracy, as well as support its batch inventory management process and manual and automated materials handling systems. The warehouse management solution underpins Teva’s inventory management operation, and integrates pick by light, radio frequency equipment, and product data metrics capture.
The scalable solution manages throughput in Teva’s 280,000 square foot (25,000 square meters) facility, and enables Teva to integrate hazardous, odd-shaped and high-value items at a single site in order to achieve maximum efficiency. Teva stores more than 850 stock-keeping units in its facility.
The company uses pick-by-light technology in its dedicated item pick area, with multiple orders picked from a specific zone. When complete, cartons are transported on conveyors to the next appropriate zone for customer order packing. Automated processing ensures that finished orders are sent to one of 78 shipping lanes, cartons are labeled and secure strapping is applied.
At dispatch, the warehouse management solution ensures cartons are automatically directed by conveyor to the correct shipping lanes appropriate to the final shipment destination by different carriers for the UK and Ireland.
Scaling for Growth
With JDA Warehouse Management, Teva can easily and cost-effectively manage the requirements of all of its customers. Teva distributes the majority of its deliveries to pharmaceutical wholesalers, as well as some self-distributing pharmacy chains. The pharmaceutical wholesalers will then distribute to local independent pharmacies, hospital pharmacies, and high street and supermarket chain pharmacies, which in turn dispense medicines to UK patients.
“With the full support of JDA, our facility delivers operational improvements, drives down costs and ensures Teva can optimize processes to surpass the exacting regulations required in a pharmaceutical supply chain,” said John-Paul Bednarek, head of operations and service for Teva UK Limited. “The efficient use of the storage capacity has allowed us to handle Teva’s significant growth.”
Using JDA’s solution, Teva has improved its pick-rate accuracy in excess of 99 percent, increased dispatch per shift volumes, enhanced customer delivery satisfaction and provided cost savings. Added John-Paul Bednarek, “The UK operation has set a benchmark that delivers big improvements in the supply and service that we provide to our customers.”
Google and NIST Address Supply Chain Cybersecurity
As high-level supply chain attacks hit the news, Google and the U.S. National Institute of Standards and Technology (NIST) have both developed proposals for how to address software supply chain security. This isn’t a new field, unfortunately. Since supply chains are a critical part of business resilience, criminals have no qualms about targeting its software. That’s why identifying, assessing, and mitigating cyber supply chain risks (C-SCRM) is at the top of Google and NIST’s respective agendas.
High-Profile Supply Chain Attacks
According to Google, no comprehensive end-to-end framework exists to mitigate threats across the software supply chain. [Yet] ‘there is an urgent need for a solution in the face of the eye-opening, multi-billion-dollar attacks in recent months...some of which could have been prevented or made more difficult’.
Here are several of the largest cybersecurity failures in recent months:
- SolarWinds. Alleged Russian hackers slipped malicious code into a routine software update, which they then used as a Trojan horse for a massive cyberattack.
- Codecov. Attackers used automation to collect credentials and raid ‘additional resources’, such as data from other software development vendors.
- Malicious attacks on open-source repositories. Out of 1,000 GitHub accounts, more than one in five contained at least one dependency confusion-related misconfiguration.
As a result of these attacks and Biden’s recent cybersecurity mandate, NIST and Google took action. NIST held a 1,400-person workshop and published 150 papers worth of recommendations from Microsoft, Synopsys, The Linux Foundation, and other software experts; Google will work with popular source, build, and packaging platforms to help companies implement and excel at their SLSA framework.
What Are Their Recommendations?
Here’s a quick recap: NIST has grouped together recommendations to create federal standards; Google has developed an end-to-end framework called Supply Chain Levels for Software Artifacts (SLSA)—pronounced “Salsa”. Both address software procurement and security.
Now, here’s the slightly more in-depth version:
- NIST. The organisation wants more ‘rigorous and predictable’ ways to secure critical software. They suggest that firms use vulnerability disclosure programmes (VDP) and software bills of materials (SBOM), consider simplifying their software and give at least one developer per project security training.
- Google. The company thinks that SLSA will encompass the source-build-publish software workflow. Essentially, the four-level framework helps businesses make informed choices about the security of the software they use, with SLSA 4 representing an ideal end state.
If this all sounds very abstract, consider the recent SolarWinds attack. The attacker compromised the build platform, installed an implant, and injected malicious behaviour during each build. According to Google, higher SLSA levels would have required stronger security controls for the build platform, making it more difficult for the attacker to succeed.
How Do The Proposals Differ?
As Brian Fox, the co-founder and CTO at Sonatype, sees it, NIST and Google have created proposals that complement each other. ‘The NIST [version] is focused on defining minimum requirements for software sold to the government’, he explained, while Google ‘goes [further] and proposes a specific model for scoring the supply chain. NIST is currently focused on the “what”. Google, along with other industry leaders, is grappling with the “how”’.