Life Sciences Logistics & Distribution
One of largest integrated life sciences businesses needed to simplify its logistics and distribution network and reduce costs by €65 million.
- Reduce global distribution costs by €65 million over 2.5 years.
- Made specific recommendations to reduce costs by €26m in benefits through improved freight practices, €27m through planning, forecasting and supplier management and €30m by reduction in number of sites.
Reduce Costs & Improve Service in Logistics and Distribution
One of largest integrated life sciences businesses, with customers in 144 countries and an extensive network of 531 warehouses across 6 business units (pharmaceuticals, biologicals, animal health, consumer care, diagnostics and diabetes care) engaged The Highland Group to substantially simplify its logistics and distribution network and reduce costs by €65 million.
The Highland Group designed and administered a market requirements survey to 242 customers in NAFTA, Europe/Middle East/Africa, Asia, and Latin America. Based on the survey of what customers believed to be most important, The Highland Group proposed recommendations to the company’s distribution policies, practices and overall strategy.
- Developed a System For Managing to provide the Distribution and Logistics management team with a single source report summarizing the key operating indicators of the business.
- Designed a new process for managing all proposed process improvement opportunities under one central authority.
- Identified opportunities to reduce freight costs in the U.S. and Europe by ~ €26 million, or roughly 20% of freight costs.
- Reengineered the planning and forecasting process, which will benefit the company in the areas of inventory management, scrap management, supplier management and productivity.
Reduced logistics and distribution costs by