Teaching notes: XL pharmaceuticals: effective operation and logistics
XL enjoyed several years of leadership in pharmaceutical market of GCC. But during recent years with coming of several chain pharmacies such as Bin Sina and Boots and due to their old-fashioned model of business and inefficient operation, they are losing their leadership in market. Dr Saffy studied the situation and he strongly believes that XL can enhance their operations and increase their efficiency by establishing a new warehouse in Dubai, new warehouse layout design and an integrated information system linking all the pharmacies to the warehouses and head office. By these three changes XL can enjoy saving cost, an increase in their response as well as the availability of their products. Now, he is planning to meet the senior executive to explain all his strategies for betterand well-performing XL.
This case can be used in logistics, operations and strategic management and business classes. The case provides a practical example of a company which positioned itself well to be a leading company. However, there are some inherent problems that hinder the company to reach its leading position. As cases such as this are limited in the MENA region, it would be beneficial for the students to learn through local cases.