With Inact Now, Specific Pharma A/S has gained a clear overview and can more easily understand when they need to make purchases. This has enabled them to save a lot of money by canceling old backorders they might not have noticed otherwise.
Case: Specific Pharma A/S
We saved DKK 500,000 in one click
“Inact Now tells us so much about our products, customers and suppliers, it makes a huge difference”
– Interview with Project Manager at Specific Pharma A/S, Josefine S. Christensen
We don't want to make decisions based on gut feeling
Why did you decide to invest in Inact?
We wanted to minimize bottom-line losses and improve profitability. We’ve had an overstock that has been increasing and we lacked both strategies and the tools to deal with it. In addition, we operate with products that have a very short shelf life. This means that our window to sell them quickly closes, which can result in some losses.
Many may feel that they know the business and have a good gut feeling. But we just felt that we could no longer make decisions based on gut feeling. There were several situations where we weren’t hitting the mark in terms of customer needs. And where we couldn’t win tenders because we didn’t bid properly. In addition, we have also grown a lot in a short time. And the market and our competitors have changed. So we need to manage our business more intelligently. And we needed a tool to manage and differentiate our inventory so that we have the right products in stock when we need them.
Focused work on selected areas and specific goals
What specifically have you done to solve the challenges?
Together with Inact, we have defined three focus areas for our products. We call these areas ‘sellable’, ‘minimize loss’ and ‘avoid loss’. Inact recommended that we set some goals that we can work towards and use to keep an eye on how we’re doing. So, for example, we’ve decided that for our A-products, we need to have a reach of three to four months and a service level of 98%. And to achieve this, we’ve set up reports to help us monitor and reach those goals.
Inact Now tells me everything I need to know. I have a report of open purchase orders, backorders, customer info, etc. It’s all pulled from our ERP system. In addition, Inact has made sure we can see reports on:
What we have sold in the last three months
The development in sales
How many days of availability I have based on the forecast
And those three reports are absolutely brilliant and actually form the basis of everything, you could say. So this rather simple solution makes a world of difference for us.
One click saved us DKK 500,000
Since we have Inact Now, we can see that we don’t need to make the same purchases as before. And this has saved us a lot of money.
In fact, we saved half a million DKK by canceling a number of old backorders that we would otherwise have missed. All in one click using one of the reports we built in collaboration with Inact.
This tool, which can teach us about our assortment, our products, suppliers and the distribution of our business, has made a huge difference.
It has actually become the cornerstone of our purchasing department. So, the inventory value may be the same, but the quantity represented in the ABC categories is completely different. And that means that our inventory value is worth more. In other words, we make more money on the inventory we have now than we did before.
And it saves us a lot of time. Before, we had to pull a lot of queries from our systems, compile it into an Excel file and share it with everyone. Now, our quality manager can, among other things, pull an updated report every day of all the items we may have in quarantine.
"This tool, which can teach us about our assortment, our products, suppliers and the distribution of our business, has made a huge difference"
Results
Direct savings of DKK 500,000
Dialogue with the board
Every month, Specific Pharma A/S uses Inact Now as a reporting tool for the board. The platform makes it possible to quickly see the development in their inventory value and explain how it is distributed across their products.
Improved communication with sales
The sales manager and purchasing department share information about items in Inact Now. This enables everyone to understand why their inventory looks the way it does. And it saves them a lot of time-consuming status meetings.
Specific Pharma A/S
Specific Pharma A/S was established in 2010 and specializes in supplying unlicensed medicines for special purposes such as clinical trials and shortages. Today, Specific Pharma A/S is the largest supplier of unlicensed medicines in the entire Nordic.
www.specificpharma.com
