How PSP, one of the largest distributors of medicines in Georgia, implemented the complete digitization of the distribution warehouse

PSP is a distributor of guaranteed quality medicines from over 100 leading pharmaceutical manufacturers in Georgia. The company has a wide pharmacy network, with more than 300 pharmacies located in the regions of Georgia and all districts of the capital.

  • Industry: Medicines distribution and retail trade
  • Country: Georgia
  • Website: psp.ge
Software and services SMART WMS

The continuous growth of PSP’s distribution warehouse, which involves receiving a large number of SKUs from different manufacturers and delivering goods to over 300 pharmacies and partner companies, has significantly increased the warehouse workload. As a result, there is a need for complete automation of existing warehouse processes to ensure fast and efficient reception, scanning, inspection, stacking, picking, control, and dispatch of products without interruption, at a fast pace, and without human errors.

Over time, with the growth of the company, the volume of work and complexity of managing the warehouse increased. In order to ensure efficient functioning of the company, it became necessary to automate the existing software and mechanical processes. This led to the idea of introducing a unified ERP system. We began to consider which system would be most convenient for us, requiring full automation of warehouse processes, time-saving capabilities, and batch control functionality. After evaluating various solutions and company presentations, we ultimately chose Microsoft Dynamics and its associated product, SMART WMS.

Мамука Брегвадзе
Mamuka Bregvadze
Administrative Director

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This is how the process of SMART WMS implementation started

At the beginning of the warehouse process automation project, SMART business experts conducted an analysis of business process compliance with the standard functionality of the SMART WMS system. Based on the results, a Gap Analysis document was created that listed all tasks requiring modifications and configurations. Subsequently, the prototype was developed, including system configuration, technical documentation, and changes. Active preparations for the Go-Live stage were conducted, which included data import, integration testing, and training for roles and security rights. Following the completion of the preparatory work and the launch of the SMART WMS system, SMART business employees continue to provide support to the partner.

PSP has 2 warehouses in Georgia, one located in Tbilisi with an area of approximately 15,000 m2, and the other in Kutaisi with an area of 2,000 m2. During the system implementation, it was important to place approximately 25,000 brand-name medications on appropriate trays and assign them unique barcodes to indicate the medication’s location, expiration date, and batch number. Along with aligning the data, the biggest challenge was to ensure continuous warehouse operation without interruption. Parallel to the implementation, the warehouse operation could not be interrupted, as the main task was to ensure the continuous and timely supply of products to 300 pharmacies and partner companies.

Мамука Брегвадзе
Mamuka Bregvadze
Administrative Director

Implementation results

Up to the present time, PSP has successfully optimized its warehouse operations, improving accuracy and efficiency while reducing the time required for order control, packing, and shipping.

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PSP also experiences an increase in staff productivity due to the automatic prioritization of warehouse operations and recording the actions of each employee in the system, which minimizes the number of manual errors.

The implementation of SMART WMS optimized the medication accounting system, making information on the batch, balance, and location of each medication available in the system interface. Warehouse operations have been restructured, and each warehouse employee is now equipped with a special mobile device loaded with specific tasks to be performed.

Мамука Брегвадзе
Alex Lomadze
Business Development Manager

“The accurate accounting of goods in the system provides the opportunity for the user to generate orders promptly, and the speed of order processing significantly increased in the first month of system operation. The implementation of targeted storage facilitates real-time inventory control, and now the warehouse stocks are transparent because complete monitoring of the information is carried out in the SMART WMS system.”

Currently, approximately 200 warehouse employees are utilizing the mobile application to perform their tasks. This has led to a 2-fold increase in efficiency of warehouse operations through optimal utilization of human resources. More tasks are now being completed and new employees can be quickly integrated into the workflow without the need for extensive training.

Мамука Брегвадзе
Mamuka Bregvadze
Administrative Director

As a result of the cooperation with SMART business Georgia, PSP has achieved a high level of warehouse control and transparent inventory management, which has greatly simplified the daily activities of each employee. This is clear evidence that the company genuinely cares about its employees.

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