Improving inventory management
We designed a new process and solution for the production and distribution of inventory, generating dramatic savings in storage and disposal.
The Situation
The Production and Distribution (P&D) division of a major pharmaceutical company wanted to improve its management of field aid inventory. The segmenting of the P&D division into small teams organized by therapeutic area hindered the operational efficiency of producing and distributing field aid, which was costly to store and destroy. Research indicated that, with improved inventory management, our client could save as much as 9% of its field aid budget, which ran in excess of $100 million annually.
The Satori Solution
We developed a new process for the production and distribution of field aid inventory, based on just-in-time methodology and the use of historic data to forecast distribution needs. We built that logic into a pilot database, which contained automated reporting functionality that captured current expense and savings figures. We also established a governance structure, deriving its authority from P&D senior management, which detailed the roles, accountabilities, and timing necessary to execute the revised process. Finally, we designed, developed, and deployed a new, centralized online solution for managing field aid inventory.
The Results
The new solution required less time to administer, and it more accurately and efficiently managed the production and distribution of field aid inventory. Our client was able to dramatically reduce its annual destruction and storage expenses.
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