How to Manage Inventories, Cut Wastages and Rejects in Warehouses? A Lean Six Sigma Case Study

​Lean Six Sigma case study in a pharmaceutical company

Problem: A Canadian Drug company had huge inventory and also wastages in their warehouse. How to cut down rejects? Is there a scope of reducing procurement expense?

Due Diligence :  The procurement process was mapped and it was found that the inventory management process was inefficient. Multiple investigative tools were employed to arrive at root cause(s) of the problem.

Solution: Lean six sigma methodology was employed. A new inventory management process was designed and integrated with SAP- ERP system. A ‘FIFO’ usage and distribution system was introduced and implemented across all locations within the organization.

Roles and responsibilities for continuous implementation of the new inventory management process was assigned to department members. Appropriate training was provided as well as documented.

Result Dashboard:

• Decreased % rejects by 200 %
• Decreased materials procurement by 150 %
• Improved supplier relationship.
• Smoother supply chain logistics process
• Improved cross-functional team engagement, in turn better productivity.

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