Client Challenge
How does a small biotech firm based in the UK and manufacturing in Nepal offer next
day service to its U.S. client base?
Founded in 2000 by a group of biochemists at the University of Oxford, Everest Biotech
manufactures and distributes high-quality novel antibodies for the research market,
with a particular focus on human disease research. Manufacturing is located in Kathmandu,
Nepal, while product design, sales, and distribution are based in Oxfordshire, UK.
The current catalogue lists more than 1500 antibodies, and approximately 45 new
products are being added each month. Initially products were sold through re-branding
vendors. But in 2005, it became possible to sell direct to customers in the United
States under the Everest Biotech brand. Advantages for the customer would
include faster delivery times, quicker and better informed technical support, and
lower prices. In order to offer customers in the U.S. the same quick and reliable
service available to customers elsewhere, however, it would be necessary to maintain
sufficient stocks of all the products within the U.S. to enable overnight delivery
and avoid potential customs delays.
Owing to the perishable nature of the products, it was vital to find a logistics
partner able to receive and store products at -20°C, ship to customers quickly and
reliably using cold packs, and manage variations in lots across the catalogue.
Given the large initial size and rapid growth of the catalogue, it was also important
to find a partner with sufficient storage capacity to accommodate future growth
and an IT platform that could process a large number of SKUs quickly and accurately.
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Solution
Outsource U.S. distribution and store a complete inventory of catalogued products with LifeScience Logistics.
Based in the U.S., LifeScience Logistics is able, under
permit from the USDA, to import in bulk, thereby reducing transportation costs and
avoiding customs delays, while allowing Everest Biotech's U.S. clients to order
from a U.S. entity. LSL's warehouse management software allows Everest to track
their inventory, plan replenishments, and take orders remotely. LSL's Louisville,
Kentucky, facility was selected as the single point of distribution. Its strategic
geographic location, in close proximity to UPS's all-points U.S. hub, made it an
ideal location for cold-chain distribution. Orders are processed the same day, and
Everest Biotech's clients anywhere in the U.S. are guaranteed delivery the following
morning.
Results
Everest Biotech is able to offer next-day delivery to its U.S. customers, and its direct brand sales double in three months.
Thanks to LSL providing a solution that delivers next-morning delivery to U.S.
clients, Everest Biotech has streamlined the customer acquisition process and quickly
established their brand in the U.S. research market. “Our successful partnership
with LifeScience Logistics has allowed us to double direct sales of our own brand
in three months,” reports Dr. Claire Thompson, Marketing Manager for Everest Biotech.
“We are extremely satisfied with the professional service that LSL provides.” In
addition to significant revenue gains, order and inventory accuracy have been 100%.
As a result of increased sales volume, Everest plans to add a call center to its
package of LSL services.
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