Global Inventory Optimisation at GSK - Successful Inventory Planning Requires a New Approach Q&A Session Sridhar Tayur / Sarita Kotek 15th October 2002

The Academy of Logistics Global Inventory Optimisation at GSK “How do we integrate GSK commercial, and how do we plan to integrate customers?”

15th October 2002 The Academy of Logistics Global Inventory Optimisation at GSK “What does SmartOps do that our existing systems don’t?”

15th October 2002 The Academy of Logistics Global Inventory Optimisation at GSK “There are stocks that are not linked directly to demand. Two examples are those linked to procurement strategy or stocks linked to new product introduction. How do we handle them?”

15th October 2002 The Academy of Logistics Global Inventory Optimisation at GSK “How do we take shelf life into account?”

15th October 2002 The Academy of Logistics Global Inventory Optimisation at GSK “Desired service level is an input to SmartOps – who will decide what it should be?” Note: SmartOps handles external service levels as an input and internal service levels as an output.

15th October 2002 The Academy of Logistics Global Inventory Optimisation at GSK “There are costs to implementing an optimised solution – how will they be taken into account, and how will the adverse overhead recovery be addressed?”

15th October 2002 The Academy of Logistics Global Inventory Optimisation at GSK “How are we covering potential costs incurred by commercial?”

15th October 2002 The Academy of Logistics Global Inventory Optimisation at GSK “Does the model cater for multi warehouse GSK distribution?”

15th October 2002 The Academy of Logistics Global Inventory Optimisation at GSK SmartOps can support multi warehouse distribution but we did not use that option. We will need to include additional safety stock in those markets operating a multi warehouse structure.

15th October 2002 The Academy of Logistics Global Inventory Optimisation at GSK “Have we modelled the impact on our internal suppliers, and how will we implement the solution to minimise disruption within the internal supply chain?”