Case Studies Alliance Boots achieves immediate inventory savings and improved service levels with Manhattan solutions

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	Alliance Boots achieves immediate inventory savings and improved service levels with Manhattan solutions

Alliance Boots achieves immediate inventory savings and improved service levels with Manhattan solutions

Technology Category	Functional Applications - Enterprise Resource Planning Systems (ERP) Functional Applications - Inventory Management Systems
Applicable Industries	Healthcare & Hospitals Retail
Applicable Functions	Logistics & Transportation Warehouse & Inventory Management
Use Cases	Inventory Management Predictive Replenishment Supply Chain Visibility
Services	Software Design & Engineering Services System Integration
Challenge	Following the merger of Alliance UniChem PLC and Boots Group PLC, Alliance Boots needed to redesign its European logistics function and replace the Group’s various proprietary replenishment systems. The solution would be deployed in most of the European countries encompassed by Alliance Boots and integrated rapidly to all the company’s suppliers. The solution would have to offer a proven, reliable and upgradeable forecasting and replenishment system that would enable the group to better identify and exploit buying opportunities, reduce inventory levels, improve service levels, improve replenishment processes, and gain a much clearer understanding of stock value. Read More
About Customer	Alliance Boots was formed in July 2006 following the merger of Alliance UniChem PLC and Boots Group PLC. Alliance Boots offers a range of products and services to customers in 20 countries through Group owned operations, joint ventures, and associates. The Group has two core divisions—pharmaceutical wholesaling and retail pharmacy. Alliance Boots leads the retail pharmacy market in Europe with approximately 3,200 retail outlets operating in nine countries. The wholesale and distribution network serves 135,000 pharmacies, hospitals, and health centres via 370 depots. Read More
Solution	Alliance Boots selected Manhattan Associates’ Demand Forecasting and Replenishment solutions after a thorough investigation into the solutions available on the market. Together, the companies assembled a dedicated group of 15 people—including Alliance Boots employees from the UK, Holland, France, and Italy, as well as three consultants from Manhattan—to undertake a thorough study of Alliance Boots’ needs. The group detailed the specific business requirements of Alliance Boots’ European operations, the optimum systems configuration to support those requirements, and the benefits that could be expected from the use of Manhattan’s solutions. The UK deployment—the first phase of the European Wholesale project—started two months after Manhattan’s selection. The solution went live within six months across an initial group of 20 suppliers. The full integration of Alliance Boots’ supplier base—close to 1,000 suppliers—took an additional three months. Following the successful conclusion of the UK implementation, Alliance Boots and Manhattan Associates switched the project’s focus to the rest of Europe, with implementations in Spain, Turkey, France, Italy, the Netherlands, and Norway. Read More Log in to view content
Contents

Technology Category

Functional Applications - Enterprise Resource Planning Systems (ERP)

Functional Applications - Inventory Management Systems

Applicable Industries

Healthcare & Hospitals

Retail

Applicable Functions

Logistics & Transportation

Warehouse & Inventory Management

Use Cases

Inventory Management

Predictive Replenishment

Supply Chain Visibility

Services

Software Design & Engineering Services

System Integration

Challenge

Following the merger of Alliance UniChem PLC and Boots Group PLC, Alliance Boots needed to redesign its European logistics function and replace the Group’s various proprietary replenishment systems. The solution would be deployed in most of the European countries encompassed by Alliance Boots and integrated rapidly to all the company’s suppliers. The solution would have to offer a proven, reliable and upgradeable forecasting and replenishment system that would enable the group to better identify and exploit buying opportunities, reduce inventory levels, improve service levels, improve replenishment processes, and gain a much clearer understanding of stock value.

About Customer

Alliance Boots was formed in July 2006 following the merger of Alliance UniChem PLC and Boots Group PLC. Alliance Boots offers a range of products and services to customers in 20 countries through Group owned operations, joint ventures, and associates. The Group has two core divisions—pharmaceutical wholesaling and retail pharmacy. Alliance Boots leads the retail pharmacy market in Europe with approximately 3,200 retail outlets operating in nine countries. The wholesale and distribution network serves 135,000 pharmacies, hospitals, and health centres via 370 depots.

Solution

Alliance Boots selected Manhattan Associates’ Demand Forecasting and Replenishment solutions after a thorough investigation into the solutions available on the market. Together, the companies assembled a dedicated group of 15 people—including Alliance Boots employees from the UK, Holland, France, and Italy, as well as three consultants from Manhattan—to undertake a thorough study of Alliance Boots’ needs. The group detailed the specific business requirements of Alliance Boots’ European operations, the optimum systems configuration to support those requirements, and the benefits that could be expected from the use of Manhattan’s solutions. The UK deployment—the first phase of the European Wholesale project—started two months after Manhattan’s selection. The solution went live within six months across an initial group of 20 suppliers. The full integration of Alliance Boots’ supplier base—close to 1,000 suppliers—took an additional three months. Following the successful conclusion of the UK implementation, Alliance Boots and Manhattan Associates switched the project’s focus to the rest of Europe, with implementations in Spain, Turkey, France, Italy, the Netherlands, and Norway.

Impact #1	Manhattan’s Demand Forecasting and Replenishment solutions enabled Alliance Boots’ 15-person UK planning team to make highly accurate forecasts for each of the company’s 384,000 SKUs and 30,000 product lines.
Impact #2	Decisions about replenishing stocks are made from forecasts based on sales history, demand estimates, and the potential effect of promotions.
Impact #3	The Demand Forecasting component runs the forecast calculations and automatically suggests the majority of order quantities, while the Advanced Exception Management capability allows users to focus on the smaller but highly significant percentage of orders that can be expected as a result of store promotions or events that may trigger sudden swings in demand.

Impact #1

Manhattan’s Demand Forecasting and Replenishment solutions enabled Alliance Boots’ 15-person UK planning team to make highly accurate forecasts for each of the company’s 384,000 SKUs and 30,000 product lines.

Impact #2

Decisions about replenishing stocks are made from forecasts based on sales history, demand estimates, and the potential effect of promotions.

Impact #3

The Demand Forecasting component runs the forecast calculations and automatically suggests the majority of order quantities, while the Advanced Exception Management capability allows users to focus on the smaller but highly significant percentage of orders that can be expected as a result of store promotions or events that may trigger sudden swings in demand.

Benefit #1	The UK deployment went live within six months across an initial group of 20 suppliers.
Benefit #2	The full integration of Alliance Boots’ supplier base—close to 1,000 suppliers—took an additional three months.
Benefit #3	Alliance Boots’ 15-person UK planning team manages 384,000 SKUs and 30,000 product lines.

Benefit #1

The UK deployment went live within six months across an initial group of 20 suppliers.

Benefit #2

The full integration of Alliance Boots’ supplier base—close to 1,000 suppliers—took an additional three months.

Benefit #3

Alliance Boots’ 15-person UK planning team manages 384,000 SKUs and 30,000 product lines.

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Overview

Alliance Boots achieves immediate inventory savings and improved service levels with Manhattan solutions

Operational Impact

Quantitative Benefit