Balancing Demand and Supply in the dynamic Pharmaceutical Drug and Device marketplace
Global Supplier of Pharmaceutical Drugs and Devices to Healthcare Institutions
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 potential product shortages to allow more timely allocation of capacity or manage customer delivery expectations to preserve customer relationships and long-term business continuity.
TPG led a cross functional team from Marketing, Sales, Finance and the Supply functions to implement a monthly Sales and Operations Planning process. A series of specific monthly meetings were put-in-place to support development of more viable Sales and Supply plans. 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 more accurately define capacity availability against the improved Demand Plan. Multi-functional processes 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 and thereby increase the number of patients served while more predictably delivering financial goals. Customer Service improved by 3% 9 months after the S&OP launch.