medi Relies on Intelligent Inventory Optimization Software from INFORM
The medical device manufacturer medi relies on the solution suite ADD*ONE for its inventory management. Thanks to well-founded forecasts, the global company can significantly reduce its inventory levels, automate its scheduling processes and noticeably reduce the workload on its employees.
With the help of the software, we were able to achieve savings in themillions, and this result has more than exceeded our targets.
Given the special requirements in the healthcare sector, it is no easy task to guarantee reliable and, above all, economical product availability. "Our compression stockings and orthoses have strict best-before dates that must not be exceeded," explains Heidi Kätzel, Head of Production Management at medi. "In total, we have well over 100,000 active products in stock. Our stock levels should, therefore, be as low as possible," says the head of the department. At the same time, the company must be able to deliver at all times.
In order to meet these challenges, the medical device manufacturer has been optimizing the inventory planning of all departments, both in purchasing and production management, with the help of the ADD*ONE solution suite.
By using intelligent forecasting in ADD*ONE, medi was able to significantly reduce its inventory, resulting in millions of euros in savings. The software also supports automated replenishment processes and "Management by Exception" approaches that enable employees to focus on critical orders. In addition, a vendor management inventory (VMI) tool was developed that simplifies delivery processes and improves supply chain performance.
CHALLENGES
- Strict minimum shelf lives in the healthcare sector
- Keep more than 100,000 items available at all times
- At the same time, as little stock as possible
- ERP weaknesses in ordering and scheduling processes
RESULTS
- Significantly reduced inventory leads to savings in the millions
- Automation of all standard orders means more time for critical orders
- Relieving the burden on employees and easing the problem ofskilled workers
- More security thanks to simulations and reliable forecasts
Christoph Wiericks
Expert for Supply Chain Optimization
Christoph Wiericks focuses on process analysis and project planning in the internal supply chain with a focus on inventory optimization. He has been working in the Inventory and Supply Chain division of INFORM GmbH since 2016.
