Tapajós Group invests in technology to fine-tune product replenishment process

• The intention is to grow in double digits next year, to open 20 more franchise stores and 20 own stores.
• Thus, the company contracted Neogrid’s solutions to increase collaboration with suppliers and, especially, to add intelligence in supply and distribution planning, enabling increased operational efficiency and profitability throughout the chain.
• Neogrid will support a business network of more than 300 suppliers, six Distribution Centers and 126 stores among wholesalers and retailers.

Currently, Tapajós Group, located in Manaus, has six Distribution Centers (Manaus, Porto Velho, Guajará-Mirim, Boa Vista, Belém and Santarém Rede), its own network with four brands (Farmabem, Santo Remédio, Flex and Flex Atacadão) totaling 126 stores. Today it is responsible for 50% of the medicine distribution in the region, its revenue was R$ 1 billion and it wants to grow in double digits in 2021. For next year, there are also plans to have 20 more franchise stores and to open 20 own stores. “And for that to happen, the company decided to improve all the purchasing and distribution processes, making them even faster, smarter and aligned with market reality,” comments Fernando Ferreira, director of sales, marketing and CX at Tapajós Group.

“We have many different challenges from other regions. Our lead time is extremely long, as a merchandise can take more than 30 days to arrive in Manaus. Therefore, stores want more availability, there is pressure from the financial area to reduce inventories, a lot of product transfer among stores. It is an orchestra that we have to conduct with great care and affection, any wrong note on an instrument can make the music be out of tune. And, for this reason, we contracted Neogrid to assist us in this process,” he says.

To accelerate its digital journey and increase collaboration with suppliers, Tapajós Group will deploy Neogrid’s Commercial EDI and DAR (Demand Activation Retail) platforms, automating the order flow and providing sales performance insights to manufacturers.

In its supply chain, the company opted for DRP (Distribution Requirements Planning), which, in an automated and smart way, calculates the volume of purchases to match inventory to demand, through better management of delivery times, level service, storage capacity and turnover of goods. Therefore, the retailer is better able to reduce the incidence of out-of-stock – which generates loss of sales and customers – and excess merchandise – avoiding idle cash in inventory. The tool also assists in controlling store inventory levels, indicating how to execute product distribution more efficiently among stores.

 “Neogrid has been innovating, investing in technology and people to meet the demands, dynamics and trends of pharmaceutical retail, always having customers and consumers as the core of its actions. We are certain that our solution will be the competitive advantage for Tapajós Group to advance in its medium- and long-term strategies,” comments Kleber Marinho, commercial manager at Neogrid.

“With Neogrid providing insights on how to improve our product mix, replenishment and improve the intelligence system for operations, to reduce inventory levels and out-of-stocks, we can also increase availability at stores. In the future, we still hope to implement an S&OP (Sales and Operations Planning) tool that helps us in sales planning,” completes Ferreira.

For Paulo Lucena, commercial director of Neogrid, it is very gratifying to be chosen as a partner of one of the most important groups in the country’s pharmaceutical segment. “We are immensely proud to be part of this investment in the processes of digitizing orders, collaborating with suppliers and supply intelligence at Tapajós Group. We will work together to bring even more expressive results to the company”.