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Life Sciences

NEEDS-BASED RESULTS

 

Life Sciences

SITUATION

Major division of a global (20 countries) pharmaceutical manufacturing company was experiencing rising supply chain and logistics network costs.

DRIVER GOAL

  • Realize 3 million (1.5%) in cost reductions.
  • Achieve a minimum customer service level of 98% complete and on time.
  • Reduce inventory levels by 20%.

RESULT

  • Saved $10 million (5%) annualized.
  • Reduced packaging inventories by 75% and finished goods inventory by 40%.
  • Achieved targeted customer service level.
case study image, CS-150 large

Case Study

Optimize Supply Chain, Improve Customer Service & Reduce Inventory

Issue

A major division of a global (20 countries) manufacturing company, experiencing rising supply chain and logistics network costs, engaged The Highland Group to understand customer requirements, define service levels, reduce inventory and defragment the organization.

Highland Approach

The Highland Group began by surveying the market to gather customer requirements, then worked to realign the global supply chain organization around the “Customer Demand to Branch Replenishment” process to improve communication, remove functional barriers and support the optimized value chain solution. The team piloted Lean tools to reduce inventories and to illustrate the benefits of demand-pull compared to existing push methodologies.

Actions Taken

  • Designed and conducted a customer survey to define specific marketplace requirements for the supply chain then prioritized opportunities for improvement.
  • Designed and implemented a global S&OP process to coordinate operational planning and facilitate team decision making.
  • Implemented a Lean pilot on one of the major production lines to initiate a pull process from the branch through the plant and to the vendors.
  • Defined and installed a common set of global metrics as part of the monthly planning process.
  • Categories included customer service, inventory, sales, forecast accuracy, capacity analysis, production attainment and vendor performance.
  • Completed a detailed logistics network analysis including lane modeling and value chain mapping. Defined opportunities to optimize distribution freight costs and reduce cycle time from customer demand to branch replenishment.

Realized cost reductions of

$10m

designed and implemented a flexible supply chain structure that supports the division business plan and leverages synergies across the parent organization

Related Information

subject matter-based

Client Partner

Financial Services, Marketing & Consumer Products

Petrina is a creative, hands-on executive with over 25 years of international business experience with a proven track record of working collaboratively across traditional boundaries and solving complex operational issues. She previously served at the senior executive level of one of North America’s leading financial institutions and several global consulting organizations. There, she led engagements serving industry-leading clients in United States, Canada, England, Germany, Austria, Switzerland, Norway and the Netherlands.

Project Leader

Sales, Marketing & Consumer Products

North America

Bill is a senior project leader with more than 20 years of hands-on experience in assisting multinational companies by deploying his expertise in Lean Six Sigma and Business Process Management tools, tactics and strategies. He has deep expertise in sales and marketing improvement, supply chain optimization, fixed-cost reduction, channel management, total production management, balanced scorecards and post-merger integration.

Senior Consultant

Supply Chain

Laurence has more than twenty years of industry and consulting experience in all areas of supply chain management – including inventory management and procurement – and in Total Working Capital management.

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