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Life Sciences Manufacturer

NEEDS-BASED RESULTS

 

Life Sciences Manufacturer

SITUATION

Global life science equipment and supply manufacturer, with a corporate strategy of rapid growth through acquisition, needed to improve service levels and customer satisfaction.

DRIVER GOAL

  • Support Customer Service & Distribution Operations goal of improved customer service with reduced costs (20%) and enhanced working capital position within 18 months.

RESULT

  • Improved on-time customer service from 88% to 92%.
  • Improved productivity of warehouse processes by 28-66%.
case study image, CS-218 large

Case Study

Optimize Customer Service & Distribution

Issue

A global life science equipment and supply manufacturer, with a corporate strategy of rapid growth through acquisition, needed to improve service levels and customer satisfaction, which had suffered due to changing customer requirements and increased volumes brought by acquired products.

Highland Approach

The Highland Group conducted a Discovery and Design process on the client’s Customer Service & Distribution function to determine opportunities for improvement, increased efficiency and consolidation.

Actions Taken

  • Reengineered order entry, customer maintenance, credit and collection processes.
  • Simplified organizational silos to permit a multi-site environment to be consolidated into one location.
  • Minimized country-specific processes and language requirements to reduce cycle time and increase throughput.
  • Using advanced modeling techniques, analyzed the North American distribution network with an emphasis on cost, lead time and quality, and developed a strategy for 3PL involvement and transition from fixed to variable cost logistics.
  • Re-engineered North American warehousing processes to reduce cycle time and increase throughput.
  • Using advanced modeling techniques, analyzed the EU distribution network and determined the need for a new 3PL partner. Then, created the process and criteria to select and transition from the incumbent to the new 3PL provider in accordance with local regulation.
  • Developed the optimal Asian distribution network (modal options and distribution centers) and identified the opportunity to reduce seven centers to two.

Improved on-time customer service to

92%

while improving warehouse productivity by 50%+

Related Information

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