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4 min read • Jan 08, 2021
Since the Salus Group is specialized to provide complete distribution, promotion and active sales services as well as value added services necessary for the medicinal product or medical device to be placed on the market it represents a vital link in the supply of medicinal products, dietary supplements, medical devices and high-quality and innovative services, which provide health and well-being of people.
As a companies’ offering grows, it reaches a point where the manual ordering of goods becomes too complex and labor-intensive. Consequently, it becomes impossible to do proper forecasting on various types of items.
Head of purchase department
states that the usage of AI-based platform for supply chain management was a new challenge for the team:
Using the AI-powered SCM platform provided by BE-terna posed a new challenge to my team. We had to establish confidence in understanding our future sales in order to be more precise and accurate with new purchase orders.
Head of purchase department, Salus Group
Our platform has three core innovations; using state-of-the-art algorithms to provide sales forecasting based on both historical and 3rd party data, utilizing optimization techniques to optimize orders using constraints, and improving decision-making with interpretability.
The use of the AI platform gave us a better insight into the sales dynamics and consequently into the dynamics of inventories of goods. Based on this data, the purchaser better optimizes the value of the stock of goods and the frequency of placing new purchase orders.
- Purchaser, Salus Group
The crucial factor for achieving that goal was the consideration of numerous additional factors needed when purchasing and the fact BE-terna successfully included most of them to correctly forecast sales. My team is now able to understand correlations that in the past were taken into account only by heart. Our current expectation is that we will optimize purchase processes for at least 50% and we expect to have lower stock levels while not risking stock-outs at the same time, but in fact reducing them. For us, this is a very important part of the optimization process and is the reason for our decision to start using an AI-powered SCM platform and to entrust the development and implementation of the project to our long-term partner BE-terna.
- Head of purchase department, Salus Group
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