Research On The Improvement Of Inventory Management Of Z Pharmaceutical Company

With the big change to pattern and operation of pharmaceuticals industry, cost reduction becomes a really important topic. Inventory management is the most important item of cost control in manufacturing factory including pharmaceutical company. Various products, information disjoint and government control lead to the inefficiency of inventory management in pharmaceuticals industry. How to maintain the inventory in a reasonable level based on supply chain theory and experience has become a focus of many pharmaceutical company’s concerning.Z company is a subsidiary company of a American pharmaceutical company, which located in China currently. Main products are drugs of antibiotics, drugs for treatment of endocrine disorders and drugs for cancer therapy. They are widely accepted and trusted by Chinese market because of the good quality. The revenue also doubled very quickly. At the same time, inside warehouses are exploring and company has to borrow outside warehouses to maintain the operation. Qualitative and quantitative analysis of inventory management of this company are reviewed in this paper, comparing the severity of each type of warehouse, determining normal temperature warehouse should be the first priority. After the internal communication and data analysis, main root causes are listed out. For example, unscientific safety setting, imperfect material procurement model, internal miscommunication etc. Based on the research, related supply chain based improvement solution is provided to those problems. By the follow-up tracking and data analysis, we believe those solutions are effective. The last in this paper is conclusion and prospect, we believe status of cold storage warehouse and cool storage warehouse can be improved through the experience on normal storage warehouse.