Case Study: Multi-national Pharmaceutical Supply Chain
Client Requirement
This pharmaceutical organisation had successfully completed a major project to implement an internal global supply chain capability, with the focus on improving visibility of sales forecasting, demand management and inventory management at c.40 manufacturing and sales locations around the world.
Before extending this capability to its remaining manufacturing and sales locations, there was a need to review the existing approach, especially in the light of latest supply chain management thinking and a major SAP implementation planned for the manufacturing sites.
Solution Proposed and Delivered
Rod Clarke carried out a review of the existing Global Supply Chain capability within the organisation, including interviewing key personnel in UK, Europe and North America. Discussions were held with the existing software supplier (Manugistics) and SAP to review their latest capabilities and approaches.
A detailed presentation was prepared for discussion with the Executive covering an evaluation of the existing strategy, options and recommendations for next steps. This evaluation covered outline process design, organisational issues and software assessment.
Recommendations and Action Taken
The four key recommendations were:
- To implement an effective global Sales & Operations Planning process
- To urgently complete the rollout of the existing Supply Chain Management tools and processes to all remaining locations
- To implement global inventory management on a product family basis
- To create a single inter-company export management organisation.
Each of these recommendations were accepted.
Cost/Benefit
- Total cost to the client of this activity was c.£35,000.
- Benefit to client exceeded £20m reduction in inventory investment within one year.