Growth Phase: Scaling
Title: Health on Time: Optimizing Pharmaceutical Supply Chain
Headline: Tripled Inventory Turnover Rate and Freed Up 50% Capital
Short Description: NovaPharma used FYNANCE’s inventory and procurement tools to streamline its supply chain, dramatically increasing turnover and freeing capital for expansion.
SME Background:
NovaPharma is a regional pharmaceutical distributor supplying clinics and pharmacies. In scaling mode, it faced overstocked warehouses and tight cash tied in inventory. With growth goals, the company needed to operate leaner to distribute medicines efficiently and finance new product lines.
Challenges:
- Excess inventory: Overstocking of slow-moving drugs locked up cash and risked expirations.
- Procurement inefficiency: Manual ordering led to irregular supply and stock imbalances.
- Capital constraints: High inventory costs limited the ability to invest in marketing and new facilities.
FYNANCE Implementation:
- Inventory analytics: Deployed FYNANCE’s real-time inventory dashboard to track turnover rates and identify slow-moving items.
- Just-in-time ordering: Set up FYNANCE alerts to reorder medicines automatically based on demand forecasts, minimizing excess stock.
- Procurement planning: Used FYNANCE to negotiate better payment terms with suppliers by presenting clear purchase plans and cash flow forecasts.
Outcome:
- Inventory reduction: Inventory turnover rate tripled, turning over stock 3 times faster than before.
- Capital release: Freely available cash increased by 50% as excess stock was sold off, funding expansion to two new distribution regions.
- Efficiency gains: Stockouts dropped by 40%, improving service levels for clinics and boosting sales by 15%.
.png)
.png)
.png)
.png)
.png)
