NACDS’ collaborative supply chain event spotlights growing role for technology, logistics

ORLANDO, Fla. Supply-chain logistics and sophisticated replenishment and forecasting technologies are a lifeline to a secure future for the chain pharmacy industry, the chairman of the National Association of Chain Drug Stores told industry strategists and technology gurus early last week.

Addressing the 2009 NACDS Supply Chain & Logistics Conference here, NACDS chairman Andy Giancamilli said the role played by supply-chain managers is critical to the continued profitability and viability of large-scale retail pharmacy.

“Because of technology, innovations, competition, regulations and other dynamics, [supply chain and logistics functions] have become vital topics in boardroom discussions,” said Giancamilli, who is CEO of Snyder’s Drug Stores and CEO of Katz Group North America. “Just as you have been called upon to have answers on how to maximize the outcomes during periods of growth, you also will be called upon to have answers to maximize outcomes amid the current environment.”

The conference, held March 15 to March 17 at the JW Marriott Orlando, provided a platform for retail executives, product manufacturers, distributors, and companies that sell transportation and distribution services to come together and work collaboratively on “key industry issues that impact the supply chain system,” according to NACDS.

Among the highlights: a talk by NACDS president and CEO Steven Anderson. Addressing conference-goers Tuesday, Anderson proudly recapped two regulatory victories for community pharmacy in the technology and supply chain arenas last year. Those victories, he said, highlight the organization’s lobbying efforts and the “return on investment” membership in NACDS brings.

“Working with our state partners, we secured a delay of California’s e-pedigree requirement – an estimated $90 million in savings for NACDS members operating there,” Anderson told industry leaders at the event. “Last year, we were vocal in our opposition to a federal track and trace mandate that could have cost more than $110,000 per store in the first year, without living up to its lofty expectations.”

The three-day meeting also included a presentation on the economy and ways in which retailers and manufacturers can assist financially-challenged consumers today – and ways in which mega-trends will play out at the retail level in coming years. Attendees also got their first look at “NACDS Econ ’09,” a multi-meeting, multi-media program launched last month to deliver “timely and actionable” information to NACDS members and participants in NACDS meetings.