A Slow-Moving Object’s Success Story

Effortlessly automate processes, provide curated forecasts, and optimize SKU with Syren’s intelligent queuing and unified data platform for inventory management.

Improving Inventory Management For a Pharma Organization

Supply chain management is always evolving, and progressive solutions are what keep the needle moving. Syren has been working closely with a major pharmaceutical company to enhance its operational efficiency and granular departmental or SKU and profitability. Pharmaceutical SLOB inventory presents significant challenges, including tying up working capital, consuming valuable storage space, and disrupting demand forecasting.

Understanding SLOB Challenges

Managing a pharmaceutical supply chain is not easy. Slow-moving and obsolete inventory can tie up funds, take up valuable space, and make predicting demand tricky. Here are the key issues we helped the pharmaceutical company address:

Capital Constraints

Slow-moving inventory ties up working capital, impacting profitability and investment capacity.

Storage Space Limitations

Slow-moving items occupy valuable warehouse space, leading to inefficiencies and potential order fulfillment delays.

Demand Conundrum

Predicting demand for slow-moving items is complex, often resulting in overstocking or understocking situations.

Obsolescence Uncertainty

Obsolete products can lose value due to market shifts, necessitating continuous monitoring and proactive decisions.

Holding Time

Extended warehouse stays increase carrying costs and tie up working capital, affecting liquidity.

Revenue-Margin Balancing

Balancing revenue generation and margins for SLOB products requires precise strategies.

Collaboration with Suppliers

Navigating supplier constraints that may not align with slow-moving items complicates SLOB inventory management.

Elevating Pharma’s SLOB Management

Harnessing innovation and analytical precision, Syren unveiled a comprehensive solution to reshape SLOB management for our pharmaceutical partner.

Automated Analytics

Syren analyzed diverse data sources to generate key metrics related to SLOB, aiding in demand forecasting and material planning.

Advanced Demand Forecasting

Custom algorithms and statistical models enabled accurate customer demand forecasting, identifying slow moving items.

ABC Analysis

Classification aided in inventory management, facilitating the adoption of specific mitigation strategies like liquidation, discontinuation, or campaigns.

Inventory Optimization Dashboard

Real-time insights analyzed demand patterns, supported decision-making, optimized inventory levels, and mitigated financial risks.

Syren's Approach

Our approach drilled down to the minutiae of SLOB management, fostering proactive mitigation and process enhancement:

SLOB Evasion

SKU-level pre-SLOB analyses highlighted trends, empowering agile actions like demand shaping and repackaging. Reason codes assigned to SLOB instances enable process improvements such as MOQ adjustments and capability enhancements.

SLOB Performance Management

A comprehensive framework validated SLOB performance metrics within financial records. Standardized reason codes facilitated strategic insights and implementation.

Application Attributes

Scope

Encompasses all Slow Moving and Obsolete materials across material types and nodes in the Supply Chain.

Time Horizon

Focuses on 12 months, with emphasis on the initial 6 months for reduction and process enhancement.

Granularity

SKU-level actions, reason codes, and higher-level process improvements.

Reporting

Aggregated SLOB trends, focusing on significant SKUs (Stock Keeping Unit).

Frequency

Quarterly financial updates, increasing operational reviews and actions in line with maturity and monthly cycles.

Unlocking Syren's Impact on Pharma Enterprises

SLOB Tool

Enhanced functionalities, reduced workload, and improved visibility into SLOB drivers for Global Planning.

Global SLOB Reporting

Aligning Financial and Global Planning processes, creating a unified global SLOB number

Process Automation and Machine Learning

The third high-level feature of the SLOB project involves the automation of destruction avoidance, collaborative workflows, and a self-learning tool

KPIs and Benefits in the Pharma Enterprise

Total SLOB Value($)

Total Inventory at Risk

Inventory at Risk with Action

Inventory at Risk with No Action

Total SLOB Quantity

Total Healthy Inventory

Process Adherence

Total Inventory

Healthy Inventory

EPL Process Adherence

Total to be Destroyed

Benefits

Enhanced mitigation visibility through tool-generated suggestions.
Streamlined collaboration on a unified platform, involving relevant stakeholders for destruction avoidance actions.
Boosted visibility and cooperation between finance and planning, enhanced data quality and focused on impactful SLOB reduction.
Attained productivity gains with automated dashboard creation, saving 480 hours in planning and finance.
Improved efficiency by eliminating non-value-adding tasks that resulted in a gain of 1800 hours.
Reduced reliance on third-party support that cut down 500 hours.

Holistically, the synergy between Syren and our pharmaceutical collaborator ushered in a transformative solution. Our advanced analytics, automation, and collaborative tools revamped inventory management and mitigated SLOB-associated risks.