2019

Magnit Pharma.png

COMPANY

Pharmaceuticals wholesaler

Nationwide pharmaceutical products distributor: distribution center and 15 branches. The product mix is about 10,000 SKU, 50 suppliers, lead time from 3 to 20 days

SITUATION

Overstock and other issues

SIA International (SIA International or SIA Group is the name of the company before acquisition by MAGNIT) announced a tender to improve the efficiency of the inventory management system: reduce surplus inventory and nonconvertible stock, ensure uniform goods distribution, automate orders formation, and reduce the time spent. The solution proposed by Inventor Soft won over SAP, IBM, Goods4Cast, and some others.

SOLUTION

  1. ​Scalable layered system of automated inventory management for DCs and branches

  2. Advanced scarce units distributing mechanism implemented

  3. Approval procurement process interface implemented 

  4. Extended ERP integration with the Inventor Supply system designed and installed​

RESULTS

Improving process efficiency through a single system embedded in the company's IT landscape

  1. ​The inventory level stabilized within one month after launching into commercial operation

  2. The product mix has been increased by 10%

  3. The service level has been increased by 1.5 times during the first month, and according to the half-year results, the service level was increased by another 1.5 times

  4. Forecasting and replenishment fully automated while maintaining the possibility of recommendatory edits by regional employees and employees responsible for managing inventory

  • Gross profit raised by 8%

  • Sales up by 11%

  • Inventory level decreased by 20%

  • Service level increased by 8%

  • Working capital decreased by 40%

  • Replenishment frequency decreased by 12%