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Inventory Management for a Pharmaceutical company

Inventory Management at a leading global Pharmaceutical company 

Title: Inventory Reduction of 20 % (20 Cr) through elimination of NVAs and improvement in Planning Processes

Business Scenario:

  • Planning Complexities were – 6 business units, 200+ SKUs, 25+ suppliers with diff comm. terms
  • Projections of week wise and month wise schedules and stock levels were done twice a month for analysis, planning and follow-up
  • Time Bucket wise planning required a large amount of different types of data - Order wise Purchase Orders data - Ordered & Open Quantities, Expected Delivery Dates, Batch wise Receipts - Quantities & Dates, Stocks data - Item wise On-Hand, Held and Available Stock, In-Transits, Fictitious Stock, Month wise Forecasts - Item wise Base Volumes and Free Goods – all from various sources and systems
  • Supplies were sourced from several different Suppliers each with their own transactional systems

Our Solution:

  • All Base Data was changed such that they were all taken from One Source – the ERP system
  • To do this, Systems and Formats for all data exchanges between various Suppliers were streamlined
  • Electronic Interfaces between Suppliers systems where available were Customized, Tested and Deployed
  • Process Improvements and Training was done for timely and accurate updation of data in the system
  • Standardization was used for storing and working with data
  • Automation was used where possible


  • NVAs Removed: Manual Data Verification and Reconciliation tasks were eliminated
  • Data was made Reliable: No of errors in working out supply projections was reduced to zero
  • Problems relating to multiple UOMs and Multiple codes for the same item was eliminated
  • Huge Time Savings: Time for working out projections was reduced from 6 hours to less than 5 min
  • Frequency of working out projections increased from twice a month to everyday
  • Increased Time Buffers ensured that down stream work flow was streamlined
  • Up to date info implied any kind of analysis could be done at anytime with minimal efforts
  • Increased Time availability and Information visibility enabled FG Inventory Reduction by 20 C% (20 Cr)