Product Expiries Optimisation for a listed pharma player within the chronic & acute categories of branded formulations market
The client founded in 2007 was one of the fastest growing companies within the chronic and acute categories of the Indian Branded Formulations market. It was witnessing expiries to the tune of 3% of sales, which the management believed was higher than the industry benchmarks (0.75%). It had requested UC to diagnose underlying reasons for high expiries & recommend solutions to reduce the same.
To diagnose underlying reasons for high expiries, UC conducted the following analysis:
● Expiry & Sales Analysis by various pivots
● Demand Variability analysis using Co-efficient of Variation for each SKU.
● Inventory Cover analysis using Primary & Secondary sales data by various pivots.
● First Expiry First Out compliance
● Production Planning analysis
● Batch Offloading Period for all expired stocks using weighted average & FIFO.
● SKU Prioritization into runner, repeater & stranger
● Conducted primary research with industry experts to ascertain best practices related to inventory management, expiry optimisation & supply chain.
● Conducted stockiest interviews to assess their feedback on client expiries, sales process & inventory management practices followed.
The client received factors causing high expiry & solutions that can be adopted to bring it to industry benchmarks of less than 1%.