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
Benefits:
- 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)