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Main Subject - Stock Management is an Art - Not Just a Science
The demand profile of products that have been on the market for a while, using tried and tested supply routes, can be forecast with reasonable accuracy, allowing inventory levels to be lowered to healthy levels. In an ideal world, the manufacturer will produce the right quantity for the demand that is out there and each point in the chain, through importe
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
r, wholesaler and retailer, will draw as much stock as they need on a just-in-time basis. In reality, of course, most products have not had years to mature in a tried and tested supply chain. There is no art to setting a computer system to count 'em in and count 'em out again and tell you how many more to order. There is art and almost beauty in a system t
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
at can:
1. Take into account the forecast temperature and other weather variables
2. Take account of local, regional, national and world festivals and events that skew demand
3. Use fuzzy logic to mix in this time-yesterday, -last week, -last month, -last year parameters
4. Take account of pricing of the product, including opposition pricing
5. Includ
1. Take into account the forecast temperature and other weather variables
2. Take account of local, regional, national and world festivals and events that skew demand
3. Use fuzzy logic to mix in this time-yesterday, -last week, -last month, -last year parameters
4. Take account of pricing of the product, including opposition pricing
5. Includ
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
related product performance (if you are selling tinned peaches and a load of low priced fresh peaches come onto the market, you may need to trim your forecasts)
6. Fluctuations in currency values and the economy in any given location
7. Demand variations caused by tv shows or films. Product marketing is usually well co-ordinated with a film producer, fo
6. Fluctuations in currency values and the economy in any given location
7. Demand variations caused by tv shows or films. Product marketing is usually well co-ordinated with a film producer, fo
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
instance, but there are often side-effects: some products that were not purposely placed in the film will still see a spike in demand (or even a fall in demand in some cases). Also,
competitors may have been caught sleeping, simply unaware of the placement. That brings us to no.8....
8. Market intelligence. What are your competitors up to, or more impo
8. Market intelligence. What are your competitors up to, or more impo
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
tantly, what will they be up to?
The above just deals with the demand side. On the supply side of things you may also want your system to take account of optimum production runs, cubing in shipping containers and other vehicles, factory shut-down times, industrial disputes etc etc.
There are systems that can do some of the above. There are also sy
The above just deals with the demand side. On the supply side of things you may also want your system to take account of optimum production runs, cubing in shipping containers and other vehicles, factory shut-down times, industrial disputes etc etc.
There are systems that can do some of the above. There are also sy
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
tems that claim to do the whole lot. You will understand, though, that stock management is still very much a human-led activity. A real person needs to see the quantities that the computer has decided to order. There always must be an override facility. Somewhere in the chain a human being must take responsibility for the amount that is ordered. There must
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
always be a watching brief over the variables that any system uses. Most stock management systems are self-correcting. Even the most crude operations have a self-correcting feature where, for instance, out of stocks result in an increased order quantity next time and over-stocks will obviously see a downward adjustment. And that illustrates the point of th
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
s article. No system is perfect. Demand and supply patterns do not follow predictable paths - forecastable perhaps, but not predictable. There will be overstocks and out-of-stocks.
The answer? Well this depends on the product's profitability and how critical it is to your business. If a product is very profitable then it would be a crime to run out
The answer? Well this depends on the product's profitability and how critical it is to your business. If a product is very profitable then it would be a crime to run out
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
of stock. You must maintain stock quantity at well above comfortable levels. The high profitability will pay for the extra costs of storage and even pay for write-off or write-down costs if the product suddenly becomes obsolete (it happens!). On the other hand, a low profit product can easily be tipped into a loss-maker by adding overheads that it cannot s
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
stain. High volume products are high volume for a good reason and they are probably being worked in a very competitive environment. The only long terms answer is to drive down supply
costs. A way of mitigating the situation is to get the marketing people to find some space between your product and all the others out there. You need an edge so that volume
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
can go even higher, thus allowing a pro-rata reduction in costs or even so that you can eventually raise the price of your product to match its perceived higher value (I admit that this is simply unthinkable for some
products, whatever marketing you throw at it). Just bear in mind that a small operating loss is just the flip side to a small operating pr
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
fit. Do not panic. On the other hand, it could take weeks or even months to recover from an out-of-stock. The loss of goodwill could be a major blow. You need to be in
profit for longer periods than when you are in loss, so tweak the controls and don't take an axe to stock inventories if an overstock has temporarily drawn your product into a loss. The im
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
ortant thing is the long term requirement that you keep the customer supplied and maintain - and grow - demand. High volume demand is a valuable thing. It may seem like you are the busy fools, but you have volume and goodwill, and most companies would do anything for that.
When all is said and done, most points in the chain will keep strategic stock. Some
When all is said and done, most points in the chain will keep strategic stock. Some
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
will keep investment stock. Some stock, whether planned or otherwise, will be held for long periods of time. Take, for instance, Christmas lines. Many do not suffer from changes in fashions. The same product will sell year after year. It makes sense, therefore, to mothball some Christmas lines for most of the year until their time comes round again. Did I
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
ay mothball? This is apt, of course and brings me on to my last point. If you plan to keep stock for a long period, either intentionally or otherwise, don't forget that it needs some looking after. So, if it is clothes, beware of moths! If it is food, beware the sell-by of use-by date. And for EVERY product, and for everyone out there, beware of DUST!
It
It
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
imply amazes me that products can come out of storage complete with an added layer of dust. Even well packaged products suffer as the dust finds its way to the primary product. Before I open a tin of beans, I will always wipe off any dust, as this may otherwise find its way into the food. Expensive items - take electrical goods, for example - can be affect
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
d to the point that they may need to go back to the factory for a clean up. The worse thing, though, is that customer perception will be damaged.
Pallet covers are inexpensive and add only the tiniest percentage to costs. They cover the top
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
of pallet - where most dust will settle. Pallet shrouds cover the sides as well. They will provide even greater protection not just against dust but also against water from overhead sprinklers.
If you are in the business of stock management, then you will know that the human being is an essential part of the process. There is no computer system out there
If you are in the business of stock management, then you will know that the human being is an essential part of the process. There is no computer system out there
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
that has ever been able to do all of it on its own. After all the number crunching has been done - and that is the scientific bit - it is time for the experienced and skilled stock manager to weave his or her magic - and that is the artistic bit. Stock management is more than just looking at numbers. Computers see numbers. People see products and customers
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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