Case Study: Pharmacy Chain Improves Efficiency with Cloud-based Inventory Management


     As Bolivia’s leading pharmaceutical retail chain, FarmaCorp had outgrown its inventory management approach. They needed a state-of-the art warehouse management system (WMS) that could support the company’s rapid growth plans in a highly competitive market. With LogFire’s WMS and In-Store Inventory Management systems, FarmaCorp has reduced costs, improved lot visibility and increased efficiency.

The Challenge: Moving from manual inventory management to sophisticated replenishment  

FarmaCorp is Bolivia’s premier pharmaceutical retail chain with 68 locations. This rapidly growing retailer carries a wide variety of SKUs ranging from pharmaceutical and medical supplies to personal care, cosmetics and toys. Known for its commitment to customer service over the past 76 years, FarmaCorp is constantly working to expand its mission of service excellence to help make life easier for its customer.

FarmaCorp did not have a proper warehouse management system, essentially forcing the company to manage inventory manually. But, as they opened new stores, they began to see obvious limitations in this approach, including a lack of comprehensive visibility over the entire supply chain. For example, once products were in the store, they could not effectively track item location or when to replenish them. With approximately 40 stores across the country at the time, it became increasingly difficult to manage inventory manually. “For a growing retail company, tracking inventory is the difference between losing money, breaking even and making a profit,” said Andres Valdivieso, FarmaCorp CIO. “We needed a far more sophisticated warehouse management system in order to maintain and grow our business,” Valdivieso continued.

Most importantly, FarmaCorp needed help in three critical areas:

Delivering accurate communication between stores and distribution centers (DCs) for more effective replenishment

Managing critical product expiration dates across the store network to reduce preventable expenditures

Establishing a workforce management system which tracks employee productivity

Solution: A scalable, cloud-based Warehouse Management System (WMS) Enabled Explosive Growth.

     FarmaCorp was growing rapidly and customer expectations were rising. LogFire offered a solution that allowed the expanding company to grow in the most profitable way. As a supply chain visionary, LogFire knew FarmaCorp needed a state-of-the art digital supply chain that would deliver results from day one. FarmaCorp saw cloud solutions as the future of supply chain, and chose LogFire as the vendor to help propel them forward.

“After considering solutions from a number of WMS vendors we determined that LogFire had the most visionary, cloud-based approach that would support our rapid growth and enable us to maintain our leadership in the market,” said Valdivieso.

LogFire and FarmaCorp worked together as strategic partners. Within 4 months, FarmaCorp implemented LogFire’s true cloud WMS. FarmaCorp improved its operations by leveraging LogFire’s innovative capabilities and mobile solutions which enable “on the go” WMS tasks from tablets and RF devices. With the new software, FarmaCorp’s supply chain became fully automated, reducing costs and increasing efficiency.

After implementing the WMS solution, FarmaCorp needed to handle inventory at the store and decided to implement LogFire’s new In-Store Inventory Management solution (SMS). Farmacorp2

Results: Combing Responsive Warehouse and In-Store Inventory Management Delivers Competitive Growth.

FarmaCorp has successfully used LogFire’s WMS for two years. FarmaCorp started using the SMS in one of their highly-trafficked stores in 2014, and, given the positive results, they plan to expand that technology to all 70 stores by mid-2015.

Before LogFire, FarmaCorp used a large amount of resources to keep their warehouse operations functional. Now, with the digital supply chain solution, FarmaCorp requires almost no dedicated resources. “It’s great to have more efficient operations and true inventory visibility. And since LogFire is a cloud-based solution, we’ve minimized our internal resource requirements. We no longer have this huge IT backlog for the warehouse,” added Valdivieso.

With WMS, internal staff is no longer left to guess how much to order, so they can use their time more effectively. And, through greater lot visibility, personnel can more effectively manage products, even pharmaceuticals, which have expiration dates. If pharmaceuticals approaching expiration are automatically returned to suppliers, FarmaCorp can avoid penalty costs and receive full refunds.

With the successful addition of SMS in one of their premier stores, inventory accuracy has already improved. FarmaCorp now has a powerful replenishment model with greatly increased visibility. They can now confidently plan with much more accuracy than ever before.

Using both the WMS and SMS solutions, FarmaCorp is able to keep a pulse on their entire network, provide real-time updates using fewer resources and manage a more complex infrastructure. And the company plans to take the next step by implementing LogFire’s Workforce Management solution in 2015. “By working with LogFire we’ve truly gained a competitive advantage,” concluded Valdivieso.


LogFire helps organizations of all sizes deliver fast, profitable growth with a digital supply chain solution that puts companies’ inventories to work for them. Unlike bloated, time-intensive and costly platform-based products that lock in its users, LogFire’s boundless fulfillment network uses true cloud and modern technologies to provide a solution that is nimble, responsive, scalable and Day-One ready. LogFire is headquartered in Atlanta, Georgia with offices in Chile, India, Peru and South Africa.


FarmaCorp S.A., is a national pharmaceutical retail chain in Bolivia. It is currently the fastest growing and most recognizable pharmaceutical retail chain with more than 60 locations. FarmaCorp S.A. pioneered the pharmaceutical market entry by giving its customers a perfect level of service for the past 75 years based on a combination of values, work, commitment and dedication. FarmaCorp S.A. is constantly working to expand its mission of service excellence to help make life easier for its customer, by providing modern and innovative pharmacies and services nationwide.


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