Strategic Cost Reduction Through Supply Chain in Century Healthcare

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Jonathans, Endry Daniel and Kayadoe, Ruly Marthina and Adriani, Vica (2013) Strategic Cost Reduction Through Supply Chain in Century Healthcare. Project Report. Sekolah Tinggi Manajemen IPMI, Jakarta Selatan. (Unpublished)

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Century Healthcare is one of the biggest retail pharmacy in Indonesia. Their goal is become the market leader in this industry. Century Healthcare needs to lowering their costs in inventory and in order to achieve their business objective. Based on the analyses, In Prescription product only 62% (35% + 27%) of the product that generating 100% of the total Prescription sales, 38% generating zero persen of the sales. In OTC product, only 66% (44% + 22%) of the total OTC product that generating 100% of OTC sales, 34% generating zero persen of the sales in other word its not moving product. In total, not moving product consume 4,2 billion rupiah from 12,8 billion rupiah in all stocks. The reduction in the inventory level will make the company save as much as Rp304.5millions/year (Rp 4.2 billions x 7.25% (interest rate/year- estimate)). This much amount of money can be allocated to buy more super fast moving products and generate more sales. Century Healthcare also needs to defined their logistic distribution, in order to achieve a good and efficient transportation in delivering the products to the stores. To reduce the cost in the inventory, We recommend Century healthcare improving their inventory policy by eliminating the products that can not generate sales, and only keep the products with high sales in the inventory. In align with the cost reduction strategy, Century healthcare also need to improve the distribution by using the Cluster System in every sales area and a create a good route planning to achieve a good and effective distribution.

Item Type: Monograph (Project Report)
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HF Commerce
Divisions: Library > GFP (Group Field Project)
Depositing User: Elza Christina Nur Ramadani
Date Deposited: 17 Jan 2020 03:07
Last Modified: 17 Jan 2020 03:07

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