Revamped inventory management for a global Life Sciences company, achieving a 15% cut in excess inventory and a 25% boost in stock availability, bolstering profitability and service levels sustainably.
Approach
- Analyze effectiveness of current inventory management processes, policies, and solutions comparing these to best in class.
- Evaluate value stream models and SKU classification.
- Analyze end-to-end processes that support materials, information, and financial flows for select representative products, e.g. S&OP, forecasting, inventory control.
- Review potential causes and solutions for inventory leakage.
- Utilize best practices to support process changes.
Results
- Prioritized based on an assessment of expected value and ease of implementation - phased rollout to balance value and ease of implementation, along with key organizational capacity.
- Improvement across inventory levels, processes, policies, controls, and roles & responsibilities.
- 15% This initiative resulted in a 15% reduction in excess inventory and a 25% improvement in stock availability for critical items, directly impacting the bottom line and service levels.
- Institutionalized and established mechanisms to sustain the inventory improvement and leakage control program.
Segment: Pharma & Biotech · Services: supply-chain-planning, process-excellence