O8 Case Study
Pharmaceutical supply chain case study
How Allergan reduced inventory on hand by 53% and increased turns from 4.2 to 8.5 with O8 Software.
- Inventory on hand reduced by 53%
- Inventory turns increased from 4.2 to 8.5
- Customer service levels were maintained
Allergan is a global pharmaceutical company focused on ophthalmology and medical aesthetics, with European supply chain management based in Dublin and manufacturing concentrated in Pringy, France. In 2014 the business faced takeover pressure and needed faster cash generation and efficiency improvements without compromising customer service.
O8 Software was selected in early 2015 to support a demand-driven planning assessment and implementation. The team segmented SKUs by demand volatility, defined planning rules by item and location, calculated DDMRP buffers, and used simulation to manage inventory realignment across central and local distribution points.
The results were transformative. Inventory on hand was reduced by 53%. Inventory turns increased from 4.2 to 8.5. Inventory stabilized around planned buffer levels, and customer service levels were maintained. Order changes due to service issues became extremely rare.
“O8 has really brought value to our planning process. Delivering high levels of customer service whilst reducing inventory is the holy grail of any planning organisation – with O8 we have achieved this.”
Explore more
Talk with O8 about how our software can transform your supply chain planning, or browse more case studies from leading companies.