Redefining Safety Stock and Strategic Inventory Management at Pfizer

Leveraging the SAP Enterprise Inventory and Service-Level Optimization (EIS) tool, Pfizer can now calculate optimal safety stock values and automatically increase or decrease safety stock values to match demand and supply variabilities within the supply chain. Planners can use strategic stock in supply network planning (SNP) to reduce or increase safety stock for a single period or multiple periods to cover planned downtimes, product launches, or to recover from unforeseen events, returning to the normally planned safety stock levels without having to maintain manually outside the system. Simple reports measure the difference between the EIS-proposed safety stock and the current static safety stock and enables the right sizing of targets to meet customer service levels. Because of the tool, Pfizer has saved over $36 million in inventory costs and has created standardized processes across the globe.