National Distribution Centre of the Manufacturer

Algorithm of NDCM establishment

The first stage

Determination of customer’s needs and inspection of goods traffic

At the given stage pursuant to the customer’s needs a technological project of the future National Distribution Centre of the Manufacturer is established. It comprises:

• a constructive solution in which the lay-out and the internal organization of future NDCM will be described in details.
• a resource solution defining the number of people maintaining the project and settlement of technical equipment.

Meanwhile, main goods traffic options are adjusted:

• Amount medical products delivered to the warehouse;
• Storage periods;
• Distribution mechanisms.

Integration of processes

At this stage two business processes constituting NDCM technology – FARMAT’s and the Manufacturer’s ones - are verified and synchronized.

• Coordination of business processes at the level of actions.
• Integration of ERP-systems, coordination of the electronic exchange protocol.
• Testing of interaction schemes.

Following the results of the adjusted process regulations of mutual relations are drawn up, which establish terms of reception of notifications about intentions and actions, frequency and type of information exchange.

The beginning of NDCM operation is executed by a lease arrangement and an agreement of rendering of warehouse services. If necessary, mutual relations are formalized by other agreements.

Obtaining of license for pharmaceutical activity

The second stage

Beginning of NDCM operation

If necessary, within the framework of additions to main contracts, NDCM Experts render Manufacturers a complete or partial service package on support.

According to our experience, the following additional services appear to be the most often used ones:

• Drawing up of foreign-economic contracts.
• Organization of licenses obtaining from the Ministry of Economic Development and Trade for import.
• Organization of system of customs registration and certification.

The third stage

Industrial operation

The stage commences from the moment of goods arrival at the NDCM territory.

At this stage the Manufacturer of medical products is granted the following services:

• Acceptance of consignments at the warehouse.
• Maintenance of optimum storage regimes.
• In the course of storage FARMAT experts constantly and in real time inventory goods and operate warehousing.
• Pallet, box and packing operations.
• Preparation of consignments for distribution.

Information NDCM service is carried out by the module «Warehouse management», using data collection radio-terminals, and network connections are carried out using Wi-Fi of-technologies.

Constant control over availability, quantity and location of goods essentially reduces time necessary for formation of the order.

The system also allows carrying out analytical and marketing researches which promote revealing of manufacturers’ requirements in relation to dynamically developing market.

Quality assurance for services rendered:

• Quality indexes of qualified personnel labour efficiency, time specifications of acceptance, warehousing, processing of goods and other are fixed by the interaction Standard in the Agreement on rendering of services of the Certificated Center.
• All productions in the National Distribution Centre of the Manufacturer are arranged according to Goods Manufacturing Principles (GMP) of the European Union, based on the International quality control system, and also are in full accordance with the Branch Standard 91500.05.0005 - 2002 «Rules of wholesale trade in medical products. Main provisions».
• Goods traffics of different National Distribution Centers do not cross. Information on medical products movement is accessible only to NDCM employees. Each NDCM is served by special staff.
• All goods which have arrived at the territory of the FARMAT complex are insured.


There are equipped offices for the manufacturer’s employees to supervise goods traffic and process documents on the territory of NDCM. If necessary, control over document circulation can be carried out by the expert of CC.
At any time upon any request the Manufacturer is granted an operative report on NDCM actions.

The fourth stage

Efficiency assessment and control

At this stage information on NDCM work at the previous period is analyzed. The analysis is facilitated by the fact that the base of all the necessary data is completely available and is always accessible to the customer.