BaDM
Pharmaceutical products distributor (distribution center and branch network). The product-mix is about 12,000 SKU, 460+ suppliers, lead time from 2 to 50 days. Annual revenue was about $300MM
Project highlights
Situation
The company "BaDM" turned to Inventor Soft having some supply chain performance issues. The objectives for the project were to propose solutions to reduce inventory level while increasing service level in the branches, reduce the load on the distribution center assembly department, reduce the load on the acceptance departments of the branches, reduce the number of different batches in the branches, improve the efficiency of inventory management rare demand goods
Solution
As part of the project, the following work was done:
Assessment of the inventory management system based on the analysis of historical data
Implementation of a demand forecasting system for a period of 13 weeks (1 quarter)
Implementation of the inventory optimization system in the branches of the company
Integration of company ERP and INVENTOR SYSTEM
Results
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The stock is reduced by 25-30% in money and by 30% in volume; as a result, the construction of two new warehouses was canceled as unnecessary
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The inventory reduction occurred without an increase in the frequency of deliveries
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Workload fluctuations for the distribution center and regional warehouses were mitigated effectively
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Weekly load cyclicity at the distribution center equipment and the acceptance of regional warehouses smoothed out
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Human factor when preparing orders for replenishment of branches eliminated
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The purchasing department employees are freed from routine replenishment tasks and focused on interaction with suppliers​
“Thanks to the implementation of the optimization system for inventory management, the BaDM company optimized inventory in the company’s regional warehouses by 20%, with the potential for further reduction”
Viktor Chicherin
BaDM, Director