Success Story Supply Chains

Inventory & Order Management: Pharmaceutical Wholesaler

Precise consumption forecasting and order quantity optimization is a key success factor in today’s economy – for example in pharmaceutical wholesale. Predicting article demand is a challenging task. It is not only a question of how high demand will be in the future, but also when demand will occur. The use of state-of-the-art mathematical forecasting methods makes it possible to ensure the supply of medicines to a wide range of patient groups.

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reduction of inventory levels with better service levels

Goals

  • Ensuring ideal stock levels striking a balance between lean inventory levels and the risks of missing out on sales.
  • Avoidance of excess stock & high capital commitment
  • High level of automation
  • Distribution of stock within warehouse networks and hierarchies

Challenges

  • Many order variants and specifications from suppliers
  • Uncertainty and random influences with regard to demand and replenishment times
  • Need for consistent flow of incoming stock without peaks
  • Frequent price changes, promotions & special conditions
  • Quick reaction time to peaks in demand & delivery issues
  • Shifts in demand (new products, legal requirements, etc.) and article specifics (order units, chilled goods, shelf life, high-price products, quotas, etc.)
  • Seasonal influences on demand and delivery behavior

Solution

  • Creation of billions of forecasts in the last 20 years
  • 100 million items ordered fully automatically daily
  • Automatic differentiation of the methods used based on demand structures, marketability, uncertainty and defect patterns
  • Flexible control via service level specifications, demand data or order date specifications
  • Extensive analysis data to support control and connected processes
  • Creation of reliable demand forecasts
  • Flexible intervention and control options to quickly react to changes

Result

The customized solution Spare from mi Solutions maps the entire process: The application can monitor all incoming goods and consumption. This is the basis for efficient and effective forecasts, order quantities to be optimized across all items and bottlenecks to be identified at an early stage. Various options such as preventive provisioning to bridge delivery breaks or the consideration of demand peaks at the beginning of the month are examples of the flexibility of the solution.

Your Contact

Carlos Ayala Jiménez

Carlos Ayala Jiménez

Phone:  +49 1516 2 60 74 21

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