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Case Study: Pharmaceutical Market Distribution

Summary

Nautilus Systems conducted a market distribution study for an international pharmaceutical company producing both prescription and over-the-counter drugs. Identifying trends in the sales of allergy and cold medication by geographic area, by month, saved the company over $2 million per year by adjusting the timing of allergy and cold medication reaching retail sales locations.

Nautilus researched and identified information sources, including resource, financial, product, sales, and customer data, and developed a workflow model. The workflow model is used to track and monitor the factors that provide product and service quality assurance. The vast amounts of data exist in different formats and different databases.

Nautilus Systems used data mining and On-Line Analysis Processing (OLAP) techniques to analyze millions of data records from different perspectives to detect patterns, trends, data associations and critical factors not readily apparent. This analysis allowed Nautilus and the client to identify areas for improvement described below.

Nautilus Systems also developed automated extraction programs addressing data standardization, clean-up, and discrepancy reconciliation. Nautilus integrated the data mining and OLAP tool set. These programs fed the decision support database, enabling ongoing monitoring of the identified trends. This database became the core of the CI system.

On a more abstract level, what was investigated was the application of artificial intelligence methodologies to Competitive Intelligence (CI) exploration. CI is the collection and analysis of information focused on the company's external business environment which includes competition, regulatory processes, the economy, the industry, and the internal company environment.

Nautilus Systems also developed automated extraction programs addressing data standardization, clean-up, and discrepancy reconciliation. Nautilus also integrated the data mining and OLAP tool set. These programs fed the decision support database, enabling ongoing monitoring of the identified trends. This database became the core of the CI system.

Benefits

ROI: Over $2 million/year. Trends in the sales of allergy and cold medication by geographic area by month were identified.

Maximizing sales of each type of medication involved adjusting the timing of allergy versus cold medicine reaching retail sales locations. Changes affected marketing, warehousing and distribution, the scheduling of pharmaceutical compounding, and the storage and delivery of compounding materials and packaging. The resulting adjustments produced the significant savings of over $2 million the first year.


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