Healthcare/pharmaceutical companies (manufacturing, distribution and retailing) are usually expected (or may even be required) to deliver very high customer service levels, even for slow moving products. As one of our pharmaceutical customers says, “The cardinal sin in our business is running out of stock and not being able to fulfill an order.”
Insuring against this requirement by holding excessive safety stocks inevitably leads to waste, obsolescence and ultimately higher costs. But armed with advanced supply chain planning and optimization software, ToolsGroup customers navigate this difficult trade-off to make a huge difference in price and availability. They obtain sustainable fill rates, often above 99%, yet typically with 20% less global inventory.
Demand modeling generates reliable forecasts that your organization can count on to fulfill customer orders. Beyond just the product level, you can forecast demand specifically from your most important customers. It incorporates internal and external elements such as: market trends, seasonal demand profiles, new product forecasting, promotion forecasting, and returns and substitutions. It also handles sell-by expiration constraints.
Demand sensing acquires fresh daily demand data for sensing short-term changes in the demand signal. Inventory optimization and replenishment delivers high customer service levels, even across multi-echelon networks. It also addresses Vendor Managed Inventory (VMI) and S&OP.