Digital Strategy: Data-driven Replenishment Optimization (DDRO) Solution Pilot Yielding a EUR 20m Business Case in 12 Weeks

SITUATION

• Tremendous savings opportunities existed for a Top 5 pharmaceutical company who was spending 4bn USD p.a. on production-related materials with external suppliers 
• Global and local managers from procurement and SC struggled to sytematically trigger fully-optimized purchase orders due to inaccessibilitiy of information at the time of ordering

SOLUTION

• Genioo’s proprietary solution consisted of a unique data cleaning and visualization tool, a streamlined transparency process and local execution support and training approach
• It centrally enabled measurement of inventor performance on a real-time basis
• Conducted training for local site managers on how to use the DDRO and derive enhanced decision-making on inventory and purchasing 

IMPACT

• Business case of >20M value opportunities across 2 large sites identified through a detailed proof of value phase of 12 weeks
• Lowered purchasing prices and optimized inventory levels through better measurement of inventory performance on a real-time basis
• The results were partially already implemented in  >5M