Our client is a global leader in pharmaceutical manufacturing operating a major production facility in the North American region. Specializing in large-scale pharmaceutical production, this international manufacturer faced factory automation and logistics optimization challenges while maintaining strict GMP (Good Manufacturing Practice) compliance standards. With 100% manual pallet handling, the pharmaceutical company sought to reduce operational costs, improve warehouse efficiency, and implement industrial automation solutions including AGVs (automated guided vehicles) and autonomous trucks to transform its pharmaceutical supply chain operations.
competitiveness and growth, the pharmaceutical company initiated a continuous improvement approach and digital transformation of its operations. The main challenges to overcome included:
- Aggressive cost reduction targets
- Data complexity and operational visibility
- Balance between continuous improvement and strategic automation
- Proof of concept for global deployment
Operational assessment and data collection (Phase I - Starter: 4-5 weeks)
- Develop pallet transport and transfer data analysis method to identify supply chain optimization opportunities and operational cost reduction;
- Conduct one-week on-site visit to assess material handling operations, warehouse productivity, and pharmaceutical material flows;
- Map current logistics processes and document operational gaps impacting manufacturing efficiency;
- Develop warehouse automation master plan and propose layout redesign with comprehensive vision integrating production and logistics 4.0;
- Identify critical areas requiring automation technologies including AGV, warehouse management systems (WMS), and autonomous vehicles.
Automation roadmap development (Phase II - Deep Dive: 3-4 weeks)
- Create three-year digital transformation roadmap (2026-2028) combining lean continuous improvement and strategic automation;
- Develop technical specifications for pharmaceutical AGV systems, autonomous trucks, and Industry 4.0 technologies;
- Document and review current logistics processes (internal and external) to improve service levels and optimize supply chain;
- Calculate cost savings, required investments, and ROI for each optimization and automation project;
- Implement "Optimize First, Automate Second" methodology to maximize manufacturing productivity and improve operations quality.
Vendor selection and planning (Phase III - Planning: 6-8 weeks)
- Issue requests for information (RFI) to approximately 10 industrial automation and AGV system solution providers;
- Conduct multi-criteria analysis of pharmaceutical automation vendor proposals;
- Coordinate automation technology demonstrations, reference site visits, and GMP compliance verifications;
- Negotiate contracts with selected vendors for AGV systems, autonomous trucks, and WMS solutions.
Coordination and implementation of recommendations (Phase IV - Execution: 18-36 months)
- Establish continuous improvement and operational excellence teams to supervise automation project implementation;
- Implement AGV systems in three phases: end of packaging lines → warehouse → front of packaging lines to optimize material flow;
- Deploy autonomous trucks for trailer handling between buildings and improve yard operations;
- Team coaching on new industrial automation technologies and organizational change management;
- Monitor manufacturing performance indicators (KPIs) including cost reduction, productivity, quality, and safety with feedback as required;
- Train super users and users of AGV systems, WMS, and Industry 4.0 automation technologies;
- Ensure GMP compliance and pharmaceutical quality standards throughout digital transformation.
4 years