In 1995 Becton Dickinson (BD), a leading global medicine technology company, established its sub-Suharan office in Johannesburg. The South African Business strategy required inventory decentralization from the Belgium-based multimarket distribution warehouse UTI Pharma SA.
In January 2012, BD worldwide changed its ERP System, which lacked a replenishment planning and inventory optimization module for decentralized inventories.
The supply and demand planning team was based in Europe. Each commercial business segment had its own silo decision-making processes. This resulted in a lack of collaboration and consensus on forecast and inventory policies amongst the organization’s functional silos.
These challenges created a need to find a sustainable advanced planning solution aimed at optimizing inventory, from procurement throughout the supply chain network to the end distribution points. To support BD’s transition from an inventory challenged environment to a demand driven supply chain network, UTI SDi proposed a procurement replenishment solution which would address the inventory inefficiencies. This project achieved impressive results over two years without compromising services levels to customers. This understanding was pivotal in the initial arrangement between BD and UTI and ensured a rapid turnaround to a complex and expensive process. The collaborative engagement ensured the success of the project as all parties brought their expertise to improve the supply chain holistically.