Recipharm AB Sees Continued Growth in Demand for Vendor Managed Inventory

Published: Feb 29, 2012

29th February 2012: - Recipharm, the international contract pharmaceutical development and manufacturing organisation, announces today that over 80% of batches from its Stockholm facility now use its Vendor Managed Inventory (VMI) system. This means that Recipharm now provides an integrated solution and takes the headache out of managing stocks and reordering by doing it on behalf of customers. This allows them to concentrate on other parts of their operation knowing that supply is taken care of by Recipharm.

The VMI service which is tailored to each customers supply and delivery needs has seen rapid growth as few CMO’s and CDMO’s offer these value added services.

Recipharm’s VMI ensures that customers always maintain optimized stock levels with minimum input, freeing up their time to concentrate on other activities. The VMI process is managed entirely by Recipharm once forecast and inventory information is received. It works by maintaining levels between pre-defined and agreed parameters - with updates supplied to the customer continuously and notifications sent by email for delivery and shipping.

The advantages of this type of service over more traditional alternatives such as CMI (Customer Managed Inventory) or Make to Order- used by most CMO’s and CDMO’s, is that it permits a more proactive process whereby forward planning can be maintained even for products that experience cyclic demand. Setting the parameters at the start and supplying forecast and inventory information to Recipharm guarantees precise control of material purchase and can even take into account sales patterns that were not predicted. What’s more, the VMI service also includes a qualitative layer allowing customers to discuss any opportunities and changes in demand based on e.g. market campaigns and adjust their shipping levels accordingly - preventing potential bottlenecks before they occur.

Recipharm sets parameters during the design stage; however, information gained from Sales and Operation Planning (S&OP) meetings is used periodically to ensure that future supply lines are always maintained with future demand in mind.

Mikael Myhrén Supply Chain Manager at Recipharm Stockholm AB, said: “Recipharm’s VMI services continue to prove very popular with clients as it simplifies the supply process and frees up client time to concentrate on other areas – consequently increasing productivity. Over 80% of our batches are now supplied using our VMI services and we continue to lead the market, maintaining consistent supplies and records for products”.

About Recipharm

Recipharm AB is a leading contract development and manufacturing organisation (CDMO) based in Sweden employing some 1 700 employees. The Company operates development and manufacturing facilities in Sweden, France, the UK, Germany and Spain and is headquartered near Stockholm. Recipharm supplies the global pharmaceuticals market with hundreds of different products in multiple dosage forms that include solid dose, granulates and powders, sterile liquids and lyophilisates, semi solids, beta-lactams, hormones, oral liquids, sprays and dry powder inhalers.

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