Postponement strategy in packaging & labeling
A leading pharmaceutical company was managing high levels of pre-packaged and pre-labeled inventory due to complex and varying labeling requirements across different trials and regions. By enhancing coordination across its extensive network of internal and external manufacturing and logistics operations, the company worked to optimize inventory levels and improve working capital efficiency. Adhering to strict regulatory standards, the company aimed to increase flexibility and operational efficiency within the supply chain.
Ambition: increasing agility through flexible labeling and packaging
The reliance on pre-labeled products resulted in an excess of end-product SKUs tailored for specific clinical trials, limiting the client's ability to adapt to changing demands. This approach increased inventory holding costs and extended cycle times, affecting working capital release. Implementing a more agile labeling solution was key to reducing excess inventory, ensuring high product availability, and maintaining compliance with stringent requirements.
How we helped
We collaborated with the client to design and validate an on-demand labeling and packaging strategy that enabled the postponement of product labeling until items were ready for distribution. This solution involved configuring and thoroughly testing master data across ERP, APS, MES, and TMS systems to ensure seamless integration. We helped the client facilitate a smooth transition by delivering tailored training, leading proactive change management efforts, and actively engaging stakeholders to align operations with regulatory compliance and strategic objectives.
Results
The implementation of the on-demand labeling strategy significantly reduced inventory levels while maintaining strict compliance with product availability and regulatory standards. This postponement approach aligned seamlessly with QA/RA requirements, optimized operational efficiency, and freed up substantial working capital previously locked in excess inventory.
Ready to streamline inventory management with adaptive strategies? Contact us today to learn how we can help you.
