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Pan European Supply Chain Restructuring & SKU Optimisation

Industry - Pharmaceuticals (Healthcare)

Issue
  • The European region of this leading US healthcare company was experiencing twin pressures of fundamental changes in their marketplace and price erosion of their main product line (accounting for 60% of sales) due to commoditisation and new technology. The challenge was to provide and implement a business strategy that would allow them to counter these pressure

Solution
  • A multi project programme covering:
  • High level supply chain cost modelling
  • Customer service benchmarking
  • Development & implementation (outsourcing) of a pan European supply chain infrastructure
  • SKU rationalisation programme & manufacturing impact assessment

Benefits
  • US$1m annual supply chain operating cost savings
  • More flexible supply chain through the creation of an outsourced centralised network
  • Reduced supply chain complexity by rationalising the SKU portfolio from ~1,100 to ~350 with no loss of revenue

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