This company is engaged in manufacturing and distributing branded and generic pharmaceutical products. The demand profile for their products is characterized by extreme volatility caused by the drug wholesalers.

We were asked to perform a demand planning process audit to review their process versus industry best practices. We reviewed the entire process from customer input generation, to statistical modeling to intelligence generation to metrics.

Demand Planning, LLC studied their demand planning tool and implementation to highlight that the models were not being correctly generated and used by the demand planners

  • We observed that the customer level forecasting process was too complex. We outlined a series of recommendations to simplify and rationalize this process.
  • We help them fine-tune the customer collaboration initiatives with wholesalers and help incorporate customer information into the demand plan
  • Our simplifications resulted in almost 90% savings in processing time and close to 50% savings in planner time in reviewing and re-running the customer forecast models.
  • We also recommended accountability changes with regard to new product forecasting process.

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