Escapo: Central Stock Optimization

Result:
By using operational research techniques, combined with forecasting and demand prediction, 4C Consulting optimized the stock management of Escapo. The project was delivered on time and within budget.

The stock of Escapo was reduced with more than 30% while the stock rotation was decreased from 27 days till 19 days without extra efforts of the Escapo team.

4C Consulting created a full-automatic system, delivering better results compared to the original, experience based system.

Context:
One of the most important operational systems at Escapo is the stock management of the central stock and of the stock of their clients. It is a question of finding the balance between the availability of the products (service level) and the costs of keeping these products in stock.

The project is divided in two phases. In the first phase the central stock of Escapo was optimized. In the second phase the stocks of the participating “Surplus Pharmacies” will be optimized. It concerns “De Volksmacht”, “In 't Zwaard” en “Vivantia”.

Objectives:
Escapo asked 4C Consulting the following:

Escapo would like to build a stock management system that enables them to amend the stock, taking into account the expectations of the different organizations of the supply chain. 4C Consulting should base the model on analytical techniques that will use the demand of the past. The model should find the balance between the availability of the products (service level) and the costs of keeping these products in stock.

About Escapo:
Escapo Group is a Belgian wholesaler/distributor of pharmaceutical and Para pharmaceutical products. It offers over 100 local pharmacies and 50 homecare shops an assortment of 80,000 products from 600 suppliers. Escapo Group is a cooperative organization. All of the pharmacies that are serviced are Escapo Group shareholders.

The 4C domains of expertise and type of services we used to solve their problem:

• Customer Intelligence
• Demand Forecasting
• Optimization