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The Client
- Industry: Life Sciences Manufacturing
- Footprint: Global
- Manufacturing sites: More than 50 worldwide
- Employees: 75,000+
- Revenue: $55 Billion+ (USD)
In the life sciences industry, operational efficiency is not just a goal, it is a necessity. Facilities producing vital medications like human injectables, including controlled substances and vaccines, must maintain strict compliance with FDA and GMP standards while minimizing downtime and maximizing reliability. At one such manufacturing site, RS Integrated Supply has delivered measurable improvements in MRO (Maintenance, Repair, and Operations) performance through a disciplined, data-driven approach to integrated supply chain management.
Since 2016, RS Integrated Supply has supported this high-volume site, which spans several city blocks, houses over 23,000 active SKUs and operates on a 24/7 schedule. The program’s success is rooted in a commitment to inventory accuracy, process governance, and continuous improvement: all tailored to the unique demands of a regulated cleanroom environment.
The Challenge: Inventory Accuracy, Stockouts, and Process Gaps
Prior to the current program leadership, the site faced persistent challenges in maintaining storeroom discipline and operational consistency. These included:
Inventory Accuracy Below Target
Cycle count accuracy hovered around 95–96%, short of the 98% target required to ensure reliable part availability. Inaccurate counts led to frequent adjustments and undermined confidence in inventory data.
High Rate of Critical Stockouts
Between 2019 and 2023, the site experienced 25 critical stockouts, instances where essential parts were unavailable, risking costly downtime and potential batch loss. In a facility where a single batch can represent millions of dollars, this posed a significant operational risk.
Inefficient Part Issuance Processes
Parts were often issued using handwritten tickets that were later entered in batches at the end of the day. The practice increased the likelihood of data entry errors, missed transactions, and delayed updates to inventory systems.
Limited Access to Key Storage Areas
Certain storage zones were inaccessible to RS Integrated Supply staff, making it difficult to perform required cycle counts and monitor part movement. This lack of visibility further contributed to inventory discrepancies.
Technology Integration Constraints
While RS SYNC™ was used for procurement, inventory tracking relied on client-operated systems (EAMS and SAP), which were not fully integrated with RS Integrated Supply tools. FDA validation requirements limited the use of RS SYNC Mobile and delayed full implementation of SnapPart™ for visual part identification.
The Solutions: Discipline, Technology, and Continuous Improvement
RS Integrated Supply addressed these challenges through a multi-pronged strategy focused on operational discipline, technology adoption, and proactive governance.
Cycle Count Accuracy Program
A root cause analysis approach was applied to high-dollar discrepancies. Staff were trained to take ownership of cycle count results, and real-time transaction entry was enforced. By mid-year, cycle count completion reached 91%, and accuracy improved to 99.01%.
Immediate Issuance Protocol
The team eliminated end-of-day batch entry by requiring immediate data entry after each part issuance. This reduced errors and ensured inventory data remained current and reliable.
Secure Access Expansion
RS Integrated Supply worked with the client to gain access to previously restricted storage areas. This enabled full compliance with the annual cycle count requirement and improved oversight of high-value inventory.
Technology Integration
While RS SYNC™ remained the procurement technology backbone, RS Integrated Supply began implementing SnapPart™ to improve part identification. Manual tracking of product expiration dates was introduced to compensate for system limitations, ensuring compliance and reducing the risk of issuing expired materials.
Continuous Improvement Projects
RS Integrated Supply launched several continuous improvement initiatives, including:
- Inventory Reduction: Identified $313K in reduction opportunities, with $40K realized by mid-year.
- OEM Conversion: Transitioned select parts to aftermarket alternatives with client oversight, saving $48K.
- Non-Stock Purchasing Expansion: Added services to increase spend efficiency and savings targets.
The Result: Quantifiable Gains in Reliability and Cost Control
The impact of RS Integrated Supply’s disciplined approach is reflected in a series of performance metrics that demonstrate significant operational improvements:
Inventory Accuracy and Cycle Count
- 99.0% Inventory Accuracy
- 94.4% Cycle Count Progress
Stockout Elimination
- Zero Critical Stockouts reported since 2024
- 100% Service Level maintained for both critical and non-critical parts
On-Time Delivery
- 90.3% On-Time Delivery against vendor commitments
- Average part requisition to purchase order conversion time: 2.12 days
Financial Impact
- $85K in Direct Savings + $85K in Cost Avoidance
- $171K Total Savings in one year
- 20.3% Savings Progress vs. 11% Goal
Program Excellence
- Overall Program Score: 99%
- Customer Satisfaction: 5/5
- OPEX Assessment: 92% (Gold Class)
Conclusion: A Model for MRO Optimization in Life Sciences
This long-running client relationship exemplifies how integrated supply, when executed with discipline and precision, can transform MRO operations in highly regulated environments. By improving inventory accuracy, eliminating stockouts, and driving continuous improvement, RS Integrated Supply has enabled this life sciences manufacturer to achieve greater reliability, compliance, and cost control.
As the industry continues to evolve, the lessons from this site, particularly around governance, technology integration, and proactive inventory management, offer a blueprint for others seeking to optimize their MRO supply chain.