Success story

iNova Pharmaceuticals breaks free from the constraints of spreadsheet-based planning.

Logility helped pharmaceutical company iNova consolidate knowledge and processes across geographies and systems, improve productivity through automation and support rapid growth.

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Improved forecast accuracy

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Reduced manual PO creation through automation

Significant improvements

Safety stock modeling

50% Icon arrow up

Improved forecast accuracy

-40% Icon arrow down

Reduced manual PO creation through automation

Significant improvements

Safety stock modeling

Challenges

iNova Pharmaceuticals develops, markets and sells a wide range of prescription medicines and non-prescription consumer health products to over 20 countries and distributors across Asia, Australia, New Zealand and South Africa.

Its 500+ employees deliver a product portfolio spanning weight management, cough, cold and flu, pain management, health supplements, dermatology, sun care and female health products. Since 2017, under new ownership iNova has focused on expanding its product offerings.

iNova knew that achieving its growth goals meant unifying and synchronizing its approach to supply and demand planning, sales and operations planning, and inventory management. Excel-based planning created a planning process which differs across each geography, with compromised sustainability.

“Our business is complex. In addition to accounting for widely dispersed geographies, our planning processes have to reflect and synthesize different market dynamics. For example, consumer products are promotion-sensitive and, where ranged in pharmacy, products are also driven by ranging and grading. The prescription product portfolio relies heavily on statistical forecasting – a limitation for us in the Excel environment. The different planning processes hosted in Excel was a real impediment to growth, and that problem would only have grown worse. Planning in Excel is not sustainable due to the personalized nature of the tools used,” says Rowan Seccombe, iNova’s Sales & Operations Planning Manager.

Implementing Logility’s digital supply chain platform in 2019 was an important component of the company’s growth strategy, providing a future-proof and flexible technology to underpin its expansion plans.

Problems using Excel for demand and supply planning

The company is exposed should owners of key spreadsheets depart. Inconsistent use of spreadsheets across the team inhibited adoption of best practice.

Different processes

iNova’s planning process differed based on region-specific data. No ‘one source of truth’ across planning process/systems.

Inefficient data management

Time was wasted on loading data into, and analyzing information from, disconnected solutions that existed only to compensate for functional gaps in spreadsheets.

Cumbersome safety stock management

Safety stock scenario planning was cumbersome, difficult to implement and only able to change periodically (2x per annum), leaving the business exposed to stock-outs or over-supply. Aged inventory presented challenges in terms of visibility across supply planning, also presenting risk of a stock-out.

Solutions

Before implementing the Logility platform, iNova relied on spreadsheets, integrated ERP and data warehousing, and a third-party analytics tool to plan and measure its business. All patchwork solutions are inefficient to manage, but iNova’s situation was particularly challenging given its large geographical footprint, multiple business units and rapid growth.

iNova implemented Logility’s integrated solutions for data management, demand and supply planning, replenishment planning and analytics. What was once a very fragmented and time-consuming operating framework became greatly streamlined, with cohesive planning across the business and process automation that saves planners time. Allowing the statistical forecast to operate greatly freed resource to concentrate on high-volume and volatile A-class SKUs.

“We benefited from the industry expertise at Logility, and their local partner Demand Management Systems, as well as the platform. Our implementation consultants constantly challenged us to justify and reconsider current processes, and that was healthy in the end. The implementation went quickly and wasn’t without some challenges, but we’re committed to a journey of incremental improvement and are well supported by Logility to do so,” remarks Seccombe.

Demand Planning and Optimization

Supply Planning and Optimization

Data Management

Results

iNova has benefited across the organization following the implementation of the Logility® Digital Supply Chain Platform, and now enjoys consistency in planning and reporting across all regions. This collaboration has reduced “misfires” and enhanced communication and decision-making across the entire enterprise.

Logility has also supported iNova to move away from manual processes and toward greater automation, bringing real efficiency gains to the business. For example, automating purchase order (PO) creation between the Logility platform and the ERP system resulted in a 40%   decrease in manual PO creation, making PO data maintenance far more efficient.

In addition, the Logility platform offers user-defined multi-level forecasting, a critical technique for iNova in supporting their S&OP processes as well as where the business fits within the FMCG sector. This forecasting capability saves times by automatically updating group-level forecasts when changes are made to individual SKUs, and vice versa. The ‘pyramid’ approach also aggregates demand history into logical groupings, resulting in more stable and accurate statistical forecasts. The results can then be pushed down the pyramid via a ‘fair share’ method to the item level if needed.

Using statistical models for forecasting iNova’s more stable SKUs has essentially freed up planner time to think creatively about managing more volatile SKUs. The models for the more stable SKUs reduced demand error by more than 50% and provided better methods for optimizing safety stocks.

Finally, the Logility suite of integrated solutions contains much of the functionality that previously resided in disparate tools, so time and effort spent on the disparate processes in those tools is greatly reduced.

“The flexible and configurable design of the Logility platform has greatly reduced our reliance on legacy systems and has established a trustworthy source of truth,” Seccombe states. “What’s more, the platform supports our need to manage forecasts across regions and at different hierarchical levels, such as supermarket and pharmacy distribution centers.”

The flexible and configurable design of the Logility platform has greatly reduced our reliance on legacy systems and has established a trustworthy source of truth.