ROSTA

2016

ROSTA.png

COMPANY

Nationwide pharmaceutical products distributor

Nationwide pharmaceutical products distributor (distribution center and branch network) with the annual revenue of about $400MM (2015). The product mix was about 10,000 SKU, 50+ suppliers, lead time from 1 to 10 days

SITUATION

The ROSTA company turned to INVENTORSOFT to solve some issues across inventory management:

(1) to determine the efficiency reserves of the existing inventory control and distribution system with a serious financial crisis at the background,

(2) to ensure the maximum level of service in branches with some inventory constraints on the central warehouse,

(3) optimize the load on the distribution center's procurement department,

(4) optimize the load on the acceptance departments of the branches and

(5) minimize the human factor

SOLUTION

  1. Initial assessment for the inventory management system of the branches

  2. Demand forecasting implemented

  3. Inventory optimization implemented

  4. Centralized replenishment for all the branches from a distribution center implemented

RESULTS

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

  1. ​An optimal service level provided for branches with a limited resource in the distribution warehouse

  2. With the decrease in the average inventory level up to 15-20%, losses due to out-of-stock in sales points with those units available in the distribution warehouse reduced by three times

  3. The inventory management process is fully centralized

  4. Headcount decreased by 50% thanks to full replenishment automation

  5. The human factor in the routine decision-making process eliminated totally

  • Gross profit raised by 7%

  • Sales up by 17%

  • Inventory level decreased by 15%

  • Service level increased by 12%

  • Working capital decreased by 45%

  • Replenishment frequency decreased by 10%