Biotech Case Study
In the biotechnology field, where production lead times are long, equipment constraints and sales periods are limited, it is essential to develop a comprehensive and strategic long-term sales plan for each product. This plan should take into account the unique characteristics of the product, such as its production lead time, equipment constraints, and sales period. This will allow the company to better anticipate and manage product demand, ensuring that there are adequate resources in place to meet customer needs.
|Business content||Manufacture and sale of vaccines and other pharmaceutical products|
|Installation module||Sales Plan | Analysis & Report|
"Company A", which had primarily focused on domestic operations, was rapidly expanding its overseas presence in the vaccine and biopharmaceutical business due to the diversification of sales destinations driven by an increase in product offerings and product types. However, this expansion presented significant challenges in terms of sales planning and inventory management. The company was struggling with a labor-intensive, manual process of compiling sales plans in Excel, created by the sales staff for each product and business partner. This process was time-consuming and prone to errors, resulting in low accuracy of sales plans. Furthermore, the lack of visualization of supply chain management (SCM) data caused frequent stock-outs and returns, negatively impacting customer satisfaction and financial performance. To overcome these challenges, the company needed to implement a more efficient and effective sales planning and inventory management system that leveraged the latest technology and data visualization tools.
Bio products are produced over an extended period, using limited equipment and resources. Once produced, these products have a limited shelf-life and must be sold within a specific period of time, otherwise, they will be discarded. This creates a significant risk of overproduction, resulting in significant financial losses for the company. Additionally, stock-outs of bio products not only have financial implications, but also have a direct impact on national security in certain situations, such as COVID-19.
To mitigate these risks, it is crucial to implement a comprehensive and strategic inventory management system that can simulate sales targets, inventory operations, and supply volumes on a weekly basis. This system should enable sales and marketing teams to formulate accurate sales plans and effectively manage inventory levels and availability.
In addition, it is important to thoroughly implement an inventory management plan for products that have been completed and to set up alerts to ensure they are sold within their expiration period. This can minimize waste and maximize the value of the company's resources. This will not only improve the company's bottom line but also help ensure that the bio products are available to those who need them.
Minimize out-of-stock and oversupply by holding weekly S&OP meetings
Global PSI results (inter-base supply, replenishment, shipping, movement result analysis)
Return on Investments
Implementing an effective inventory management system enables the company to maintain appropriate stock levels for each product, preventing stock-outs and returns. This can help the company to improve customer satisfaction and reduce financial losses.
The system also provides real-time monitoring and analysis of key performance indicators (KPI), eliminating the need for manual data collection and analysis. This allows the company to quickly identify and address any issues that arise.
With the system in place, communication between different departments within the company is greatly improved. Data-driven communication allows for faster and more accurate decision-making, and departments can now collaborate more effectively to achieve the company's goals.
Moreover, the system provides transparency in decision-making by providing relevant data to decision-makers. This allows the department to work more cooperatively and make better decisions based on the data. Overall, this system can help the company to improve efficiency and make data-driven decisions that can lead to increased profitability.
By using AI algorithms and statistics to generate demand forecasts appropriately modeled for product's attributes and market trends, stocks-outs and excess inventory have been minimized.
Baseline Forecast (AI & Statistics) | Sales Plan | Replenishment Plan | Supply plan | Factory Plan | Inventory Management | Analysis & Report
The supply chain planning system can simulate various scenarios involving various raw material supplies and their prices, and come up with the best scenarios that would maximize profits while keeping the sufficient supplies to meet the demand.
Baseline Forecast (AI & Statistics) | Sales Plan | Supply Plan | Factory Plan | Analysis & Report