The Challenge
The implementation of AGR’s system was a phased process:
Too high inventory levels
Many resources involved in manual work related to replenishment
Replenish the stock according to sales fluctuations
The result
- Simulation created to demonstrate potential advantages
- Reduced Inventory levels without reducing sales
- Workflows disciplined and coordinated
- Best fit forecasting to catch seasonal trends in sales history
“We were surprised by the results from the simulation. As Parlogis is a logistics service company, we considered ourselves to be experts in stock control. However the simulation proved that there was room for improvements, both with regards to inventory level and reduction in stock-outs.”
- Parlogis
- Geir Gunnlaugsson, Manger Logistics Services, Parlogis
Parlogis is a leading logistic service provider for the Icelandic healthcare- and research sector. The company offers a wide range of logistic services such as stock management, procurement, import, custom clearance, storage, labelling, order taking, picking, distribution, invoicing, and collections. Parlogis offers daily distribution to pharmacies, hospitals, healthcare centres, supermarkets, laboratories, specialists and other buyers. Total number of buyers is around 2.000 a year and the number of orders a day is around 450. Parlogis has an experienced and specialised work force of 57 employees that can manage a high portion of the supply-chain and the extensive flow of information, goods, and money.
Parlogis is handling approximately 14.000 active articles from 500 suppliers of medicine, healthcare products, research material, chemicals, vitamin, cosmetics, and consumer goods in a 4000 m2 well equipped warehouse in Reykjavik. Managing such a large number of articles was becoming challenging and stock levels were constantly growing in order to service commitments.
