Cephalon Uses ValueTrak to Assist in Product Launch - Sponsored Whitepaper

“ValueTrak’s Days on Hand (DOH) Summary Report provided invaluable information on product visibility. In reviewing this report, Cephalon was able to see areas where distributors were low in product inventories – in relation to demand that was being measured / calculated. This provided us with the necessary information to contact the buyer of that particular distributor to encourage them to order additional product in order to meet the expected demand. A distributor’s warehouse management system (WMS) typically does not have the capability to track DOH inventory levels for a newly introduced product because those systems rely heavily on historical ordering patterns. With new products, this presents a business issue because there is no on-hand history. However, ValueTrak’s DOH report has allowed Cephalon to be more proactive in helping to ensure an adequate supply of product is available in the supply chain to meet demand. In contrast, Cephalon also uses this report to help identify cases where DOH may be too large and existing inventories should be adequate, or help mange conditions where a generic product will be introduced.”

“Cephalon has found that most wholesalers (who already have thousands of SKUs to manage) are very receptive to our proactive inventory management and are grateful for our assistance in helping them to manage product line performance.”

“Cephalon uses the Sales & Inventory Summary Report to monitor product movement within a wholesaler. This report also provides visibility of wholesalers’ outbound sales at the state and zip code level. In using this report, Cephalon found that new product inventories were low in several states, and used the information to re-calibrate the inventories in the identified states. In addition, we have used this report and worked with distributors to help adjust inventories to appropriate levels when a generic product is expected to enter a given marketplace.“

“Within the first 6 weeks of our most recent new product launch, we developed a report within ValueTrak to present to Cephalon’s upper management. This report included

information broken down by DC and identified details such as the largest and smallest DC stocking the product, how many stores (by distributor) were stocked with the product, etc. This detail was also given to sales reps so they had a baseline referencing pharmacies that had the product and those that did not. Cephalon also helped distributors to rebalance product levels within their warehouse network. Using information from this report, Cephalon worked very closely with our distributors to help them to manage their inventories by processing additional orders for the product when inventories were low, and suggesting that they reallocate inventories where levels appeared high. The main goal was to ensure that distributors were adequately stocked versus measured demand in each region. This provided a win/win scenario for both Cephalon and our customers.”