Cloud Based Integrated Supply Chain
Planning and Optimization Suite
Building Operational Efficiency in Complex Supply Chains
Sampling Budget Optimization for Pharma Companies
www.saddlepointtech.com [email protected]
Sampling Budget Optimizer
Pharma companies invest a large part
of their marketing budget in sampling
drives. Allocation of the samples
across MRs are usually done based on thumb rules. This makes
the sample allocation process highly inefficient as the wrong
products and sub optimal quantity gets allocated to the MRs.
This then translates to a less than desired topline.
The Sampling Budget Optimizer solves this problem by optimally
allocating samples across MRs by considering various
parameters like sampling budget, productivity of the MR,
productivity of the sales area, seasonality of usage, flat sampling
for new products, min-max sampling slabs etc.
Objective of the Optimizer:
Allocate the right product in the right quantity to the MRs so that either the revenue is
maximized, or the sample budget is minimized keeping the revenue fixed.
Typical Constraints Considered:
▪ Annual Sampling Budget
▪ Minimum & Maximum Productivity at different location levels
▪ Seasonal Indicators
▪ Flat Sampling for New Products
▪ Min. – Max. Sampling Slabs
▪ MR level Max and Min Requirements
▪ Product Category (Major, Rest, New)
A Case Study: Optimizing Sampling Budget for one of India’s
largest and fastest growing Pharmaceutical companies.
Distribution of free samples was one of the major promotional
activities that a leading pharmaceutical company with more than 8000
medical representatives in India used to carry out on a regular basis.
Allocation of the samples were based on certain thumb rules like Min-
Max, Flat sampling etc. The returns that were being generated by the
sampling spent in terms of revenue realization, were therefore low.
The marketing team felt that an analytical approach to this sample
allocation process will improve the returns of this spent. To this effect,
an MIP based optimizer was deployed with an easy-to-use web-based
frontend. The solution was then integrated with the ERP system and
the HR system to minimize manual effort for data loading and reduce
data related errors.
Savings ranging from 8.5% to 11% were quickly realized across
various divisions with an average savings of around 9% for the
organization. Considerable productivity improvement and cost savings
in terms of effort of planners was a bonus.
How can we help?
Saddle Point has extensive experience in helping companies reduce their
supply chain costs by optimizing various aspects of their supply chains. It
has an integrated suite of cloud-based supply chain planning and
optimization suite that uses advanced Operations Research and AI/ML
Techniques.
▪ Integrated suite for end-to-end Supply Chain Planning, Optimization and
Digitization
▪ Optimizes and Digitizes planning processes across Sales, Distribution,
Production and Procurement
▪ Caters to Strategic, Tactical and Operational levels of planning
▪ Uses advanced Operations Research Techniques and AI/ML Algorithms
▪ Integrated Control Tower for enabling Autonomous Supply Chain
