Pharma Manufacturer
SITUATION
A pharmaceutical manufacturer was having difficulty aligning its logistics operations on a global basis.
DRIVER GOAL
- Reduce distribution costs by 10%, reduce management complexity, and optimize customer delivery performance.
RESULT
- Redesigned the warehouse network in Europe.
- Redesigned transportation flows in NAFTA.
- Accelerated the integration of a major acquisition.
Case Study
Align European & US Distribution Networks
Issue
A pharmaceutical manufacturer was having difficulty aligning its logistics operations on a global basis. Having already assisted the organization to achieve logistics and distribution savings in one division, Highland was asked to support the development and implementation of a single distribution network for Europe and NAFTA operations across all six business divisions.
Highland Approach
The Highland Group conducted a Discovery and Design process, using visual mapping techniques to identify and detail key opportunities for improvement, the specific approach required to achieve the desired results and the projected benefits.
Actions Taken
- Mapped all distribution flows and quantified distribution operations through 14 factories, 91 warehouses in 25 countries.
- Standardized data from multiple ERP systems for analysis.
- Aligned country-level customer service needs by service channel.
- Modeled the “ideal flow” to identify the most appropriate locations for product storage and distribution.
- Aligned objectives between business divisions, country affiliates and the global supply organization.
- Developed a new collaborative organization entity, “The Supply Chain Council,” to provide ongoing cross-business governance.
