Farmacias Chávez

Farmacias Chávez, one of Bolivia’s leading pharmacy chains, transformed its operating model to guarantee access to medicines throughout the country. Through an ambitious strategic plan and with the help of Slimstock, the company has aligned key areas, freeing up working capital and reinforcing its commitment to the well-being of Bolivian families.

With more than 110 pharmacies in Bolivia and a corporate culture based on teamwork, commitment and efficiency, Farmacias Chávez is the country’s second largest competitor and is committed to providing health and well-being to Bolivian families through professional service and affordable prices.
As it expands, in addition to its value proposition, it is characterised by the effectiveness of its physical points of sale, with a mix of medicines and products tailored to the demographic characteristics of its branches in seven of the country’s nine departments.

As one of the main companies of the Chávez Group, in addition to pharmaceutical retail, the health-focused holding company has two CENSAL Health Clinics, which also provide nursing and vaccination services, with the firm purpose of contributing to a better quality of life for people at no cost.

Recognised for six consecutive years as one of the best companies to work for in Bolivia (Great Place To Work), the company has balanced a good corporate climate with technological innovation. To solidify its commitment to its customers, Farmacias Chávez has implemented a logistics transformation project in its supply chain, implementing Slimstock as a key partner in the process.

A transformation driven by strategic vision

In the wake of the 2019 pandemic, the company saw an opportunity to redefine its operating model. This led to the creation of the 2020–2025 Strategic Plan, “In Search of the Perfect Store,” with a comprehensive transformation as its guiding principle: from a limited liability company to a public limited company, with a new organisational structure, a more robust approach to corporate governance and a strong commitment to modernisation and process automation.

The rapid growth of the pharmacy chain brought with it challenges of structural reorganisation to streamline processes, as a result of the increase in branches and operations.  As Juan Carlos Salinas, Project Manager at Farmacias Chávez, mentions: “The core of our business is health and access to medicines, taking into account the importance of focusing actions on improving the logistics and financial areas.” For this reason, these functions became strategic areas. “We knew we had to strengthen our demand planning, automatic replenishment and commercial offers to ensure the timely supply of medicines to our branches, thus ensuring the sustainability of our purpose as a chain,” explains Juan Carlos, Project Manager at Farmacias Chávez.

Investment in technology to achieve the “perfect store”

Farmacias Chávez adopted Slimstock as a strategic partner in its restructuring process. Following the implementation of Slimstock’s supply chain planning and management platform, Slim4, the pharmacy chain has:

• Reduced inventory by 50%
• Strengthened its inventory forecasting process.
• Automated processes and freed up working capital.
• Improved seasonality and new product management.
• Implemented an efficient product categorisation system.

The implementation of Slim4 marked a turning point. Automating planning processes allowed the company to optimise its inventory, improve product availability and adapt each store’s product mix to its customer profile.

“Thanks to Slim4, we achieved a 7-8% improvement in sales, purchasing and inventory. But beyond the numbers, what’s important is how it helped us align key areas through the S&OP committee and deliver a better experience to our customers,” says Juan Carlos.

Operational improvements

Before implementing the Slimstock platform, planning was done manually in Excel, and the budgeting and commercial adjustment process took up to ten days. With Slim4, this same process is completed in just seven hours overnight, and adjustments are uploaded automatically, eliminating the need for manual intervention.

“Previously, the budget outlook was short-term, limited to one month. Thanks to Slim4, we now have an extended view that allows us to manage planning on a quarterly basis, facilitating more strategic decision-making that is aligned with medium-term objectives,” explains Juan Carlos.

At the same time, they implemented a warehouse management system (WMS) and, together with the Slimstock solution, managed to optimise distribution to achieve 100% coverage in the store. “This process has been an evolution. We started walking, then we jogged, and today we are running, thanks to the benefits we have gained from these tools,” says Juan Carlos.

As a result, the company has not only improved its operational efficiency but also significantly increased its productivity.

Seasonality and stock management

Before implementing the Slimstock solution, seasonality and new products were calculated manually, which affected replenishment accuracy. Today, these factors are integrated into the planning model, enabling more proactive management that is adapted to actual market behaviour.

“Procurement, which was previously based on static minimum and maximum parameters, is now carried out according to coverage and service levels, optimising available inventory and reducing stock shortages,” highlights Juan Carlos.

The distribution model evolved from a simple logic based on minimums and maximums to a more dynamic replenishment system, initially prioritising 75% of room requirements under a priority 3 model, thus ensuring greater availability with less logistical effort.

Looking ahead to 2028

As part of the consolidation process of the Grupo Chávez holding company, the Farmacias Chávez chain is moving forward with determination in its transformation process. The implementation of rigorous planning practices has made it possible to reduce inventory by 50% without compromising service levels or sales, demonstrating effective strategic management.

Looking ahead to the coming years, the focus will be on further improving operational efficiency, maintaining profitability and sustainability criteria in the expansion of new branches, especially in La Paz, where we will seek to strengthen our presence and increase market share.

“Our priority has always been people’s well-being. Technology, when applied correctly and with the help of Slimstock, brings us closer and closer to that goal,” concludes Juan Carlos.