escapo stock optimization ‐ central stock
TRANSCRIPT
1 Introduction Escapo
Agenda
2 Project Scope
3 Introduction 4C Consulting
4 Stock Optimization
5 Results
6 Next Steps
7
Who is Escapo?
Farmaceutical wholesaler with a chain of approx 100 affiliated Pharmacies and 52 affiliated Homecareshops
4
LCM ARCOfin Customer Holdings
Escapo Cuyt
Limes
33 % 10 % 57%
82 %
33 %
10%5 %
Hmc91%
Annual Turnover 2009
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1. Others - Services 1.612 K €
2. Terumo3.630 K €
3. Medical Devices19.736 K €
4. Farmaceuticals101.220 K €
2.9%
80,2%
15,6%
1,3%
Strategical
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Financial Focus(shareholders )
External Focus(Customer )
Innovation - Learning(People – Upgrading) )
Internal Focus(Business Processes
Best Practices)
StrategicOptions4
1
2
3
How
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FINANCIAL CUSTOMER
Gross Margin Turnover reliability Perception
ROI Rotation Client NewCapital retention customers
Quality ShortenCoachint Lead times Reduce
Technical Sugestions to StocksKnowledge improve Avoid
process disturband ReduceEmpowerment costs
QualityPEOPLE INTERNAL
Inventory Management | SURPLUS Pharmacies –Some Figures
90.000 Products – 10.000 new SKU’s/Year
20.000 orderlines a day ‐ 3: 60” peaks
45 Employed couriers
2 to 3 orders a day – 40’
€ 8.1 Milj. Average stock value
100 Pharmacies – 52 Homecare Shops
Vianova – ViaCerta – Supply chain integration
96% SLs
Average waste is 90K / year
Average dead‐stock is 200K
Inventory Management |Optimization ‐ Solution Characteristics & Impact
Better product availability & customer satisfaction (improve SLs by 3..5%)
Lower Inventory Holding & Handling Cost (10% gain)
Reduce Dead Capital (25 %)
Better Negotiated Manufacturer Pricing
Less Obsolete Products & Dead Stock
More accurate demand forecasting
More pro‐active decision making
Dynamic multi‐echelon inventory management / optimization
Share knowledge / Awareness
Escapo Case: multi‐inventory stock optimization
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Suppliers
Central Warehouses
Pharmacy1
Pharmacy2
HomeCare3
CustomerCustomer
Phase 1
Phase 2
Finance versus Commercial Director
Balance between:
Stock too high: holding costs
Stock too low: out‐of‐stocks resulting in
● Lost sale(s)● Risk of losing customer(s)
Goal of the project:
Improve Service Levels
Minimize costs
Reduce ‘Guru’‐effect
4C Consulting | Our Mission
Ensure higher return on
customer interactions
through
smarter solutions
in marketing, sales & service
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4C Consulting | How do we do it ?
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Customer Interaction Management
Customer Insight Management
Marketing Excellence Sales Excellence Service Excellence
Consulting Outsourcing Interim Mgmt Staffing
4C Consulting | Our Customers
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Using demand forecasting...
Blue = real values; green = model
• Slow movers versus fast movers
• Based on historical data
• Model evaluation through statistics
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... And policy optimization
0
100
200
300
400
500
600
700Inventory Level
• For Base-Stock policies
Results
Stock Rotation
26 days 18 days coverage
0,5 % SKU’S 25% Turnover 9 days coverage
85 % SKU’s Intermittencie
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0
0,5
1
1,5
2
2,5
3
jan/10 feb/10 mrt/10 apr/10 mei/10 jun/10 jul/10 aug/10 sep/10 okt/10 nov/10 dec/10
Results
Service Level
From 96 % 97,4 %
Despite of higher supplier unreliability
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858687888990919293949596979899100
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%
Servicelevel Met en zonder Supplier Rating
Poly. (% excl OL) Poly. (% incl OL)