Gartner Research

Inventory Optimization in Life Sciences Requires Coordinated Strategy, Initiatives and Metrics

Published: 18 November 2016

ID: G00294843

Analyst(s): Paul Lord , Stephen Meyer

Summary

Life science supply chain leaders can use this research to align their inventory strategy, initiatives, and metrics so they balance customer service and risk exposure with corporate efficiency expectations.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • Inventory strategies created by life science supply chain leaders are often a response to top-down goals, and can compromise customer service and risk mitigation
    • Inventory Strategy Should Reflect Alignment With Business Goals and Customer Expectations, Not Just "Do More With Less"
    • Inventory Strategy Must Evaluate How Changes to Inventory Impact Other Supply Chain Deliverables
    • Inventory Strategy Must Create a Path to Optimized Levels
  • Inventory reduction projects sponsored by life science supply chain leaders often focus on eliminating waste inventory, and can unknowingly increase risk exposure
    • The Danger of the Classic Inventory Project Approach
    • Strategies for Different Inventory Types
  • Common, demand-centric inventory metrics provide an overly narrow view of inventory, and can cause supply chain leaders to make inventory decisions that jeopardize the ability to achieve customer and corporate goals
    • Inventory Quality Ratio
    • Inventory Quality Ratio — Shelf Life
    • Excess/Obsolete

Gartner Recommended Reading

©2020 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client

Learn how to access this content as a Gartner client.