Revolutionizing Pharmaceutical Distribution in Africa

The medicine store network across Africa has for a long time stayed divided, egging challenges with transportation as well as quality concerns with counterfeit and wrongly specified medications flooding the market. However, these issues facing the supply chain are fixable.

Chibuzo Opara and Adham Yehia, both familiar with the issues of weak pharmaceutical supply chains, aim to scale up Drug Stoc, an e-health procurement platform that tackles these challenges by linking pharmaceutical companies with institutions like hospitals and pharmacies in Nigeria.

DrugStoc is currently on an aggressive expansion plan to provide quality medications to 100 million people in Nigeria. They recently closed a $4.4 million Series A funding and plan to expand into 16 states within Nigeria before extending to other African markets.

The availability of quality medications in Nigeria alone means preventing numerous avoidable deaths, such as those caused by blood loss during childbirth or children succumbing to diarrheal diseases.

In Nigeria, they aim to serve over 100 million individuals, up from the 14 million they currently serve, by expanding to more states. After accomplishing their goals in Nigeria, they plan to move to other countries.

DrugStoc's funding round was led by Africa HealthCare Master Fund (AAIC), with participation from other investors including Chicago-based Vested World and the German Development Bank (DEG).

"We are excited to support DrugStoc. The pharmaceutical market in Africa has enormous growth potential, and we are pleased to back a company that is well-positioned to be a major player in sub-Saharan Africa's development," said an AAIC principal.

Founded in 2015 by Opara and Yehia, DrugStoc's roots date back to 2010 when they created Integra Health, a hospital management company based on Yehia's master's thesis. They first met as students at Maastricht University in the Netherlands.

Their first company, Integra Health, initially managed 20 hospitals. It was during this time that they realized the gaps in Nigeria's pharmaceutical supply chain. This insight led to the creation of a tech-based platform in 2015 that connected manufacturers with distributors. However, they quickly learned that a platform alone wouldn't suffice. By 2017, DrugStoc officially launched, now focusing on distribution, following a stint at the Stanford Institute for Innovation in Developing Economies.

Looking back, Yehia remarked that just having a tech platform would not have solved the issues in the pharmaceutical distribution chain. DrugStoc also needed a distribution license and to build physical infrastructure, such as distribution centers and customer service hubs.

DrugStoc now connects 400 manufacturers to over 3,200 hospitals, clinics, and pharmacies. Opara says that the platform's monthly revenue has grown over 1,500% in the last three years, driven by the quality assurance DrugStoc provides. The startup earns a commission on each sale made.

In 2019, DrugStoc won a share ($65,000) of the $1 million Africa Netpreneur Prize Initiative by the Jack Ma Foundation, a competition that awarded startups solving key challenges in Africa. They have also received grants from the Bill and Melinda Gates Foundation and seed funding from Vested World.

With new funding, DrugStoc is expanding to more locations through larger fulfillment centers and transportation networks, offering better logistics for last-mile deliveries. They are also partnering with financial institutions to provide affordable supply chain financing and making further investments in supply chain infrastructure to ensure the safe distribution of sensitive medications.

Smart Warehouse Technology Solutions

Customers today expect things quickly, and 69% of them would be more likely to purchase online if they had access to one-day shipping. However, 77% of warehouses struggle to meet same-day delivery. Finding ways to accelerate the supply chain and maximize efficiency is critical to meet changing customer expectations and for suppliers to remain competitive. The need for speed, accuracy, and efficiency is a priority, with 80% of operational leaders agreeing that new technology is needed for work advancement to achieve this. The warehouse is at the center of any producer or distributor's supply chain, so implementing a smart warehouse system is an effective way to streamline processes, maintain control, and keep up with the competition.

Redesigning Legacy Cycles and Technology

Many warehouse processes are labor-intensive and inefficient, with some organizations still relying on pen-and-paper processes or outdated technology. This can lead to errors in order handling, stock management, shipping delays, and resource wastage. In a recent survey of 1,403 IT and operational leaders, 77% agreed they needed to upgrade their warehouse technology but admitted they were slow to do so. While some have introduced new technologies to accelerate processes, an incomplete smart warehouse solution will result in technical fragmentation. A fully integrated smart warehouse solution can increase efficiency, accuracy, and reduce costs in time, money, and resources, as well as leverage data to help shape future strategies.

Integrating a Smart Warehouse Management System

An effective Warehouse Management System (WMS) is a vital record that manages everything from goods to assets to people, through to transactions and shipping. By 2024, 90% of operational leaders plan to introduce a WMS to modernize work planning and management. A successful WMS also helps support a well-trained workforce, integrate automation, and generate useful data for decision-making. It can also create an essential link between the warehouse and transportation.

Introducing Smart Technology in the Warehouse

It is now possible to integrate smart technology at every stage of the warehouse process, from goods in, stock management, to picking, packing, and shipping. A recent study showed that 94% of repetitive tasks were performed with human input, but 75% plan to improve workforce performance by equipping them with purpose-built technologies to increase efficiency, accuracy, and reduce downtime. From wearable scanners, mobile and vehicle-mounted computers, to smart labeling and voice-directed picking solutions, a connected smart warehouse can streamline workflows and support quick turnaround.

Automation in the Warehouse

Automation and new technologies are essential for warehouse operators to remain competitive. Over 75% of leaders plan to equip the workforce with smart technology to introduce automation in the warehouse. Many are investing in devices such as smart watches, mobile printers, wearable computers, and smart glasses. Voice-integrated picking devices, which can increase efficiency by 15-30%, are now being incorporated into processes.

A Smart Workforce for a Smart Warehouse

Equipping the workforce with smart technologies not only increases productivity but can also help retain key talent. As of 2020, half of the workforce comprised millennials, a generation that grew up with tablets and smartphones and expects a digital work environment. Using outdated technologies and pen-and-paper processes will not appeal to this workforce. A smart warehouse will attract a smart workforce and enable companies to retain key talent. Additionally, smart solutions can make repetitive tasks less tedious and more fulfilling, improving worker satisfaction. Voice-Directed Picking (VDP) solutions, for example, allow workers to perform tasks naturally while reducing cycle times. New lightweight wearable technology can also reduce muscle strain compared to older handheld devices.

How to Integrate Smart Working

Talk to our team about our range of cutting-edge technologies to keep your warehouse and supply chain moving. Whether it's a mobile computer, scanner, printer, or wearable technology, we have solutions to complement your strategy.