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Project

Data-driven replenishment optimization (DDRO) solution pilot that yielded a EUR 20m business case in 12 weeks

Read Time
2 minute read

SITUATION

  • Tremendous savings opportunities existed for a Top 5 pharmaceutical company who was spending 4bn USD p.a. on production-related materials with external suppliers 
  • Global and local managers from procurement and SC struggled to sytematically trigger fully-optimized purchase orders due to inaccessibilitiy of information at the time of ordering

SOLUTION

  • Genioo’s proprietary solution consisted of a unique data cleaning and visualization tool, a streamlined transparency process and local execution support and training approach
  • It cenrally enabled measurement of inventor performance on a real-time basis
  • Conducted training for local site managers on how to use the DDRO and derive enhanced decision-making on inventory and purchasing 

IMPACT

  • Business case of >20M value opportunities across 2 large sites identified through a detailed proof of value phase of 12 weeks
  • Lowered purchasing prices and optimized inventory levels through better measurement of inventory performance on a real-time basis
  • The results were partially already implemented in  >5M