Case Study : Balancing Demand and Supply In The Pharmaceutical MarketContact Us
Global Producer and Supplier of Pharmaceutical Drugs and Devices to Healthcare Distributors and Hospitals.
The client wanted to increase their ability to meet rapidly changing customer demands despite a very long global supply chain. Customer service results and inventories were below targeted levels.
A business process to anticipate product shortages to allow better allocation of capacity to manage customer delivery expectations and to preserve customer relationships and long-term business continuity.
1) TPG led a cross functional team from Marketing, Sales, Finance and the Supply functions to implement a monthly Sales and Operations Planning (S&OP) process. A series of specific monthly meetings were put-in-place to support development of more viable Sales and Supply plans.
2) Expectations were raised and processes were put in place by the Marketing, Sales and Finance groups to provide more predictability in the Demand Plan. New practices were instituted in the Supply functions to accurately define capacity availability against the improved Demand Plan. Multi-functional process implementation enabled better, more timely solutions to be explored and executed
Enabled the supplier to make decisions on production allocation and capital investment to maximize service to their customers. Aged inventory was sold to customers at discounts to improve working capital positions while freeing up cash for investments into new product development. Customer Service improved from 94 to 97% 9 months after the S&OP launch. The stock price increased by 10% 9 months after the S&OP launch.