How GenAI Transformed PHOENIX group Operations

The Obstacle

With its significant scale, PHOENIX group was facing the same complexities that are typical of a pan-European distribution network.

Manual processes in areas such as transport invoice validation and customer service created opportunities for greater efficiency. Additionally, a diverse data landscape and varying levels of digital maturity presented challenges to scaling innovation consistently across all markets.

Our Approach

To move beyond scattered experiments, PHOENIX group partnered with BCG to turn AI from a “tech curiosity” to a strategic business priority. Together, they built the GenAI Factory—a scalable, holistic model to streamline inventory management, validate complex logistics costs, accelerate procurement, and scale impactful use cases.

The first wave of solutions included the following:

• AI-Powered Inventory Cockpit to give country teams real-time visibility and forecasting capability to optimize working capital
• Transport Invoice Validator to automate the review of logistics costs and uncover hidden savings
• AI Customer Service Agent to handle high-frequency queries and free human agents to focus on complex cases
• GenAI RFQ Machine to streamline procurement processes through automation

BCG supported PHOENIX group with cross-functional delivery teams and a structured model, from ideation through validation, MVP, and scale. Only use cases with clear, near-term business returns advanced, ensuring that value was realized quickly and embedded into day-to-day operations.

The Result

The GenAI Factory was fully integrated into PHOENIX group’s digital transformation agenda and has enabled PHOENIX group to scale proven use cases rapidly across its European operations.

Early deployments are already delivering across four critical areas: sharper inventory forecasting, more accurate logistics cost control, faster customer service, and streamlined procurement. By focusing only on high-return use cases, PHOENIX group has been able to turn prototypes into fully operational products within a year.

These gains are not just incremental—they translate directly into measurable benefits for the business and its stakeholders. This, in turn, promises reduced working capital being tied up in inventory and more resilient supply chains, lower operational costs through the automation of manual processes, improved customer and partner experience with faster and more accurate responses, and employees freed from repetitive work to focus on higher-value activities.

For PHOENIX group, this has translated into a scalable AI Factory model embedded into the business, ensuring ongoing innovation.

For customers and partners, the transformation helps to ensure a reliable and consistent supply of medicines and health care products across markets, improved service levels, as repetitive inquiries are handled instantly by AI, and faster, data-driven decision-making that strengthens transparency and trust.

PHOENIX group will continue to build on its strengths by scaling and amplifying programs that have already delivered measurable value. Wave 1 solutions are already being rolled out across multiple European markets. And a strong pipeline of new use cases is underway, alongside efforts to expand the reach of AI productivity tools to employees across Europe.