Summary
A pharmacy chain identified the levers causing business losses despite revenue growth and could prioritize and address them
Problem in Hand
Client had seen a steep growth in number of stores through key acquisitions. Although the revenues grew as expected, client was struggling with mounting losses in the business due to mismanagement at individual store level . The challenge was to identify the issues and provide a sustainable solution to improve profitability
Solutioning
Initial analysis suggested that the issues were not same in every outlet and hence we needed to put in a stronger monitoring mechanism . More than 40 KPIs and their drivers were identified across Inventory Management, Sales, Logistics, recivables etc. Created dashboards to track these KPIs and their drivers for better monitoring. Automated numerous manual calculations to report various derived variables such as Sales Incentives, Average Lead time by vendor and SKUs, Vendor fulfillment rates etc.
Impact