Global pharmaceutical company


The challenge was to help the client to establish an integrated supply of its industrial (MRO) materials resulting in a reduction of stock held by the business.


  • The challenge required IESA to reduce the working capital of the business as a result of improved inventory management.
  • Improve overall efficiency of stock delivery by reducing lead times.
  • Ensure that stock holding was economic, timely and efficient for the production requirements.


The business was used to holding large levels of stock to mitigate 'outage' concerns on the production line and due to historically taking advantage of volume discounts. Additionally, employees were used for 'ad hoc' ordering which was often non-essential and undermined plant profitability.

The following solutions were put in place to deliver stock reduction.

  • Reducing stock reordering to ensure that only the correct volumes of items were in stock at one time.
  • Introducing 'Low Impact Reduction' techniques to reduce the total volumes of items in stock without taking any lines to zero and without de-stocking any items.
  • Reduced stock holdings of high use items which were previously ordered bi-monthly, to holding half the existing amount and monthly ordering.
  • Identified low use items with high stocks and reduced total stockholding and re order quantities.
  • Mapping of delivery lead times for all items to ensure sufficient ordering time is given on every line.
  • Issuing of recommended stock levels for all items based on historic and current usage patterns to reduce overall stock holding.


  • 17% reduction in inventory levels within 12 months.