2016 Winner Profile

Merck Manufacturing IT

Project Description:
Merk Manufacturing's supply chain transformation project introduced an end-to-end integrated planning model, which matches customer demand with supply both internally and externally. The project arose when the complexity of supplying bulk and finished goods globally from single nodes in the network was no longer viable. Merk used a combination cloud-based technology and traditional ERP tools to optimize supply-demand matching and replenishment of wholesaler, distributor and direct selling channels. This architecture includes demand forecast models and concurrent planning and scenario modeling capabilities. The project resulted in a 20 percent inventory reduction, a 70 percent discard reduction and headcount reduction of 29 percent. Payback for the project is estimated at 2.5 years.
Business Functions:
Inventory Management, Order Processing or Fulfillment, Supply Chain or Logistics
Business Goal:
Supply-Chain Impact
Michele C D'Alessandro, Vice President and CIO, Manufacturing IT at Merck
Whitehouse Station, N.J.
Healthcare (e.g. Medical Services, Pharmaceutical, Biotech)
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