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


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


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

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