| Andre Grigjanis at IBS Pharma tells us how to gain increased profitability with inventory optimisation
One of the largest capital expenses for pharmaceutical wholesalers is stock. Finding a balance – ensuring that products are available when customers need them, yet do not become an excess product – is critical for a successful business. However, most companies make these decisions without looking at the full picture. They don’t consider how to plan accurately for demand on the basis of detailed purchasing histories, or how to handle returns effectively. An inventory optimisation solution is designed to help companies overcome these issues in order to enhance customer service and lower operational costs.
WHAT IS INVENTORY OPTIMISATION?
Inventory optimisation tools help companies to make reliable decisions regarding product replenishment. Making the correct decisions raises efficiency and profitability by improving the forecasting of future demand and by creating a more economical stock holding. The physical distribution network is the basis for an effective inventory and supply chain management solution. Inventory optimisation defines a unique multi-level distribution network for each product, covering where the product is stored: either at an external supplier or within internal production or warehouse locations. Replenishment recommendations created by an inventory optimisation system can help companies decide when to buy, produce or ship goods between warehouses, thereby optimising the total inventory situation.
All pharmaceutical wholesalers have fastmoving products, such as aspirins, that they need to be available all the time. However, there may be some specific drugs that are required much more rarely. They may be expensive, but if a customer asks for them and they are not available, the customer is not going to wait. A dedicated solution for optimising inventories helps to ensure that the right products are available when and where they are needed. In addition, by automating many of the procedures required for effective inventory management, the people who deal with purchasing can concentrate on more profitable items. |
