Case Studies HARVARD DRUG GETS A HEALTHY OUTLOOK with Inventory Optimization

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	HARVARD DRUG GETS A HEALTHY OUTLOOK with Inventory Optimization

HARVARD DRUG GETS A HEALTHY OUTLOOK with Inventory Optimization

Technology Category	Analytics & Modeling - Predictive Analytics Functional Applications - Inventory Management Systems
Applicable Industries	Healthcare & Hospitals Pharmaceuticals
Applicable Functions	Procurement Warehouse & Inventory Management
Use Cases	Inventory Management Predictive Replenishment
Services	Software Design & Engineering Services System Integration
Challenge	Despite tremendous growth in catalog products, Harvard Drugs’ buyers were still using Excel spreadsheets to manage inventory across the company’s four warehouses. Silos across the organization created additional inefficiencies. By early 2011, new CEO Terry Haas led a three-month evaluation of processes throughout the enterprise. Hass brought in Kerry Porter in May of 2011 to enable a new vision for Harvard Drug. The turn on inventory was identified as a critical issue, and the company was more of a 'sourcing' organization than a replenishment organization. Read More
About Customer	Harvard Drug is a privately-held company distributing a deep catalog of brand and generic pharmaceuticals, over-the-counter medications, and supplements to more than 15,000 wholesale and retail customers. The company’s offerings grew through a series of acquisitions that began in 2006, and today includes more than 18,000 products over multiple divisions: Major Pharmaceuticals, Wholesaler & Distributor, Retail Pharmacy, Medical, Compounding, and Veterinary Sales. The company operates four warehouses and has seen significant growth in its catalog products. Read More
Solution	Harvard Drug selected Manhattan’s Inventory Optimization solution to improve productivity throughout purchasing and allow buyers to forecast and replenish more strategically. The implementation of Manhattan’s 'fast track' solution allowed Harvard Drug to see results quickly. Inventory Optimization enabled Harvard Drug to ditch the spreadsheets and break down silos across the divisions. The solution allowed buyers to plan for seasonal demands and make smarter purchasing decisions based on previous trends. The system also standardized processes for buyers, making the organization more nimble and allowing staff to focus on analytics and planning rather than just placing purchase orders. Read More Log in to view content
Contents

Technology Category

Analytics & Modeling - Predictive Analytics

Functional Applications - Inventory Management Systems

Applicable Industries

Healthcare & Hospitals

Pharmaceuticals

Applicable Functions

Procurement

Warehouse & Inventory Management

Use Cases

Inventory Management

Predictive Replenishment

Services

Software Design & Engineering Services

System Integration

Challenge

Despite tremendous growth in catalog products, Harvard Drugs’ buyers were still using Excel spreadsheets to manage inventory across the company’s four warehouses. Silos across the organization created additional inefficiencies. By early 2011, new CEO Terry Haas led a three-month evaluation of processes throughout the enterprise. Hass brought in Kerry Porter in May of 2011 to enable a new vision for Harvard Drug. The turn on inventory was identified as a critical issue, and the company was more of a 'sourcing' organization than a replenishment organization.

About Customer

Harvard Drug is a privately-held company distributing a deep catalog of brand and generic pharmaceuticals, over-the-counter medications, and supplements to more than 15,000 wholesale and retail customers. The company’s offerings grew through a series of acquisitions that began in 2006, and today includes more than 18,000 products over multiple divisions: Major Pharmaceuticals, Wholesaler & Distributor, Retail Pharmacy, Medical, Compounding, and Veterinary Sales. The company operates four warehouses and has seen significant growth in its catalog products.

Solution

Harvard Drug selected Manhattan’s Inventory Optimization solution to improve productivity throughout purchasing and allow buyers to forecast and replenish more strategically. The implementation of Manhattan’s 'fast track' solution allowed Harvard Drug to see results quickly. Inventory Optimization enabled Harvard Drug to ditch the spreadsheets and break down silos across the divisions. The solution allowed buyers to plan for seasonal demands and make smarter purchasing decisions based on previous trends. The system also standardized processes for buyers, making the organization more nimble and allowing staff to focus on analytics and planning rather than just placing purchase orders.

Impact #1	Harvard Drug saw a 6% growth in its institutional division within one year due to higher fill rates.
Impact #2	Fill rates improved by 430 base points year over year.
Impact #3	Obsolete inventory was reduced by 35%, making overall inventory more productive.

Impact #1

Harvard Drug saw a 6% growth in its institutional division within one year due to higher fill rates.

Impact #2

Fill rates improved by 430 base points year over year.

Impact #3

Obsolete inventory was reduced by 35%, making overall inventory more productive.

Benefit #1	6% growth in the institutional division within one year.
Benefit #2	Fill rates improved by 430 base points year over year.
Benefit #3	Obsolete inventory reduced by 35%.

Benefit #1

6% growth in the institutional division within one year.

Benefit #2

Fill rates improved by 430 base points year over year.

Benefit #3

Obsolete inventory reduced by 35%.

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Overview

HARVARD DRUG GETS A HEALTHY OUTLOOK with Inventory Optimization

Operational Impact

Quantitative Benefit