With Vanguard IBP, Pharmaceutical maker Aurobindo Pharma USA achieved rapid, simultaneous increases in both inventory utilization and business volumes, due in part to transformative improvement in forecast preparation.
Using Vanguard Software’s leading forecasting and planning platform, major pharmaceutical maker Aurobindo Pharma USA was able to increase monthly inventory utilization by 27 percent in 2016 compared to a year earlier. During the same period, the pharma company’s customer base and product base grew by a third.
Rapid Growth in the U.S. Pharmaceutical Market
Since entering the U.S. pharmaceutical market in 2004, Aurobindo Pharma USA has been among the fastest-growing pharmaceutical providers. In just over a decade, the division has multiplied its portfolio to more than 125 product families and over 450 individual product packages. And that’s across a still widening range of therapeutic categories.
Recently, Aurobindo’s U.S.-market expansion began to outpace its internal planning capability. “Our expanding portfolio overwhelmed our capacity to forecast demand,” said Dave Palew, Director Supply Chain for Aurobindo Pharma USA. He said that the spreadsheets the company was using to forecast demand had become too cumbersome to manage and too error-prone to count on.
So, Aurobindo implemented Vanguard IBP to automate and improve its forecasting and planning process. Once the system was up and running, things began to change.
“Vanguard gave us the ability to forecast each customer and wholesaler on a rolling basis. Every day we review incoming orders and compare them to forecast. We know right away if there is a supply disruption in the market,” Palew said. This ability enabled Aurobindo to grow its business both rapidly and sustainably.
Typically, when a business expands rapidly, so does the number of forecasts it prepares. This often leads to a decline in forecast accuracy due to resource constraints and errors. But with Vanguard IBP, forecast accuracy actually increased as forecast volumes shot up.
“We’re able to track and adjust forecasts across multiple key identifiers such as product code, product family, customer, and national account manager,” said Palew. None of this was previously possible. “Using spreadsheets, we would not have been able to handle these volumes, especially not with the level of detailed analytics that we pull daily from Vanguard Forecast Server.”
What’s next? Aurobindo is now looking to expand how it utilizes Forecast Server to link together more closely their various planning processes, specifically demand planning, production planning, procurement, and financial planning.