At present, most medical suppliers are facing the need to streamline an increasingly complex supply chain. The existing models in medical services sales have resulted in a stipulated increase in inventory management costs. Moreover, the extensive cost pressures faced by the medical suppliers are forcing manufacturers to optimize inventory to reduce costs and increase their returns. To curtail the challenges associated with legislation and changing global demand, the medical device industry is moving toward inventory optimization. Inventory optimization helps manufacturing industries reduce excess inventory costs across the supply chain. Consequently, organizations can optimize supply chain, understand the causes of cost fluctuations in the supply chain, and calculate the ideal stocking location and size of inventory buffers.
Quantzig’s inventory optimization techniques help the client manage the delicate balancing act between supply and demand. Also, inventory optimization techniques also help the client by providing insights so that they can stay ahead in production planning. It further assists the client to devise alternative safety stock strategies to meet store level inventory needs.
The Business Challenge
A global conglomerate in medical devices was facing challenges keeping a track of their inventory levels as certain stores were out-of-stock on items. The client was also facing challenges in terms of maintaining a robust supply chain as this would help them significantly increase their profit margins. The primary objective of the client was to identify supply chain improvements that would help optimize inventory levels and raise profits.
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To gain actionable insights into the medical supply market space, Quantzig’s business intelligence experts conducted extensive interviews with suppliers, procurement executives, and others who are responsible for effective supply chain functions. In addition, the business intelligence experts also teamed with supply chain managers to understand current process and systems.
Inventory Optimization Solution Benefits
- Increased profits by 20 to 30 percent
- Identified the promising improvement opportunities
- Developed business cases-including estimated savings for each opportunity
- Created a robust roadmap including the detailed action plans and guidelines
- Included recommendations for supplier management, product assortment, and planning
Inventory Optimization Solution Predictive Insights
- Increased inventory turns
- Reduced product allocation changes; thereby, curtailing out-of-stock items
- A considerable increase in the sales
- Improved availability and variable supply chain costs
- Improved inventory shrinkage[spacer height=”20px”]
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