SAP Solutions for Advanced Inventory Management in Life Sciences

Location: Waltham, USA

Industry: Life Sciences / Healthcare / Medicine/ Warehousing

Project Background

Our client is a leader in the bioprocessing sector and is committed to enhancing biologics production. The company’s global warehouse infrastructure focuses on essential biomanufacturing technologies, including filtration, chromatography, and protein. Given the complexity and scale of its operations, effective inventory management is crucial to maintaining operational efficiency and product quality.

Challenges

Our client  faced significant challenges in managing warehouse inventory across multiple countries:

  • Delayed Updates: Managers were not receiving timely notifications about inventory issues, hindering effective decision-making.
  • Inefficient Inventory Tracking: A unified system for tracking inventory across different geographical locations led to consistency and inefficiencies.
  • Inaccurate Batch Information: Frequent errors in batch numbers led to incorrect order dispatches, which resulted in returns and negatively impacted Repligen's reputation.
  • Inventory Shortages: There was a lack of real-time data on inventory levels, leading to shortages of critical items.
  • Operational Inefficiency: Daily physical inventory checks were impractical for managers due to their demanding schedules.
  • Data Silos: Isolated data sets hindered effective data analysis and forecasting, impacting inventory optimization.
  • Manual Data Entry: High reliance on manual processes for entering and updating inventory data increased the risk of human error.

Solutions

To address these challenges, Allied Consultants implemented the following challenges: 

  • SAP Integration: Enhanced SAP Warehouse Management systems integration to streamline both inbound and outbound inventory processes.
  • Automated Alerts: Developed a computerized alert system within SAP to notify managers instantly of any discrepancies or shortages in inventory.
  • Batch Number Validation: Implemented a real-time validation system for batch numbers to ensure accuracy before dispatch.
  • Collaboration with IT: Established a direct communication line with the backend IT team to address any technical issues affecting inventory statuses promptly.
  • Daily Reporting: Initiated a daily email reporting system to inform managers of inventory updates and potential issues.
  • Centralized Inventory Database: Developed a centralized SAP database system to unify inventory tracking across all warehouse locations, enhancing data consistency and accessibility.
  • Compliance Automation: Integrated compliance checks within the SAP system to automate regulatory compliance across all inventory processes, minimizing non-compliance risk.
  • Data Integration and Analytics: Utilized SAP's advanced data integration tools to consolidate data silos, enabling powerful analytics for accurate demand forecasting and inventory optimization.
  • Automated Data Entry: Deployed automated data entry solutions within SAP to reduce manual errors and improve data reliability.
  • Enhanced User Training: Implemented comprehensive training programs for warehouse managers and staff on the new SAP tools and processes to ensure smooth adoption and operational efficiency.

Results

  • Before our intervention, the queue error count exceeded 150. Within six months of implementing the new SAP-driven systems and processes, this number was dramatically reduced to below 10.
  • Enhanced shipment accuracy improved customer satisfaction and reduced the administrative burden associated with returns management.
  • Implementing a centralized inventory database resulted in a 30% improvement in the time to locate and move inventory across warehouses.
  • Managers and staff experienced less stress and were able to make faster, more informed decisions due to real-time inventory data.
  • Streamlined inventory processes reduced the need for daily physical checks, allowing managers to focus on strategic activities.
  • Fewer order errors and returns contributed to a more robust market reputation.
  • The shift from manual to automated data entry and the integration of advanced tracking technologies reduced operational costs by 20%, primarily through labor savings and decreased error-related expenses.

Tech Stack

  • SAP Warehouse Management System (WMS)
  • SAP ERP Central Component (ECC)
  • SAP Advanced Track and Trace for Pharmaceuticals (ATTP)
  • RFID Systems
  • Data Visualization Tools (e.g., SAP Lumira)
  • SAP BusinessObjects BI (Business Intelligence)
  • Database Management Systems (DBMS) for backend support

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