Abstract: Theobjective of this paperis to provide a strategicdesign framework for pharmaceutical warehouseoperations. The study analyzes Pfizer’s Direct to Pharmacy (DTP) strategy inGreece mainly for the selection of the major process, which is the pickingprocess in warehousing operation. The strategic designframework consists of four main steps: operation profile review, transactionaldata analysis, system and equipment review and finally a selection tool thatranks different alternatives by means of a Multi-Criteria Decision Making method.The decision alternatives are achieved by grouping several availabletechnologies according to the warehouse capacity requirements. Thestudy concludes that the use of semi-automated and automated equipment is thebest solution found in the market for the Pfizer’s DTP strategy in Greece. Examplesof such technologies are Pick-by-Light and A-frame systems.  

Key words: DTP; distribution centre; warehousing operation; MCDM

1. Problem overview

Pfizer, Inc. is apharmaceutical company that engages in discovery, development, manufacture, andmarketing of prescription medicines. In this context, Logistics Processes &Compliance Department of Pfizer, Inc. is currentlyevaluating a new distribution operation to support the implementation of a newbusiness strategy known as Direct to Pharmacy (DTP).The DTP strategy consistsin supplying Pfizer products to retailers through a single Logistics Service Provider(LSP). Figure 1shows the proposed distribution chain.

This study uses information from the Greek distribution operationandhelps Logistics Service Provider (LSP) andPfizer to choose a proper strategic warehouse solution which will allow thenecessary service level at a reasonable investment cost. Another desired learning experience from thisresearch is designing a generic framework that can serve as a guideline toevaluate similar projects in the near future. This investigation focuses on the distributioncentre operation design at the strategic level.