Case Study – Secondary Supply Chain Design

Product portfolios are becoming more complex. Supply chains are becoming more fragmented. Volumes are reducing as Pharma Companies deliver ever more complex but expensive products. Traditional supply chains are tailored to shipping cases, pallets and containers. The new Pharma model requires something much more responsive and agile.

Our team have proven experience in delivering solutions to these challenges:

  • Regional packaging and distribution hubs
  • Multi-market products
  • Late stage customisation

We have developed and implemented new supply chain and product designs to help companies deal with their ever increasing complexity.

Click on the tabs below to read about these success stories.

Solid Dose Packaging Strategy
Top 5 Global Pharma Company.
Situation
The company had a global network of solid dose formulation and packaging sites. The majority of these sites supplied a small number of brands on a global basis. This network design was creating a number of inefficiencies:
  • Packaging capacity was not optimised.
  • Component formats and sizes were locally defined.
  • Regional legislation (e.g. Braille) impacted the global supply network.
  • Best practice was not being shared.
  • Equipment design and sourcing was undertaken locally.
  • Product was distributed globally to local in-country warehouses, resulting in high working capital and shipping costs.
How We Helped
Members of our team led the development of a global solid dose supply strategy leading to a move to regional packaging and distribution hubs. In this we:
  • Mapped the existing supply chain and portfolio to determine product flows, volumes and costs.
  • Defined and evaluated to-be network options.
  • Led the assessment of suitable hub locations.
  • Designed and sized the packaging and warehouse operations in each hub.
  • Reviewed and rationalised the product and component portfolios.
  • Defined the business case and facilitated approval.
  • Transitioned the programme into implementation.
The results
Gained approval for a GBP50m rationalisation of packaging locations and supply chain, refocusing to a regional packaging model, including:
  • Development of new packaging processes, organisational model and capabilities to achieve industry best-practice KPIs whilst ensuring compliance to legislative trends.
  • Standardisation of packaging equipment (50% reduction), components (75% reduction) and SKUs (40% reduction).
  • Simplification of downstream supply chains through a multi-market warehouse model.

 

 

Late Pack Customisation for small volume blister packs
Top 5 Global Pharma Company.
Situation
The company had a significant portfolio of blister packs with unpredictable demand and extremely small order volumes. Minimum order quantities resulted in many months forward cover and high obsolescence risk.
 
How we helped
Members of our team delivered an innovative packaging design that allowed small volume product to be late customized with local language labelling and product information.
  1. We established the project team comprising commercial, regulatory, manufacturing, supply chain, quality, packaging design, equipment design and equipment suppliers.
  2. We established the necessary cross-functional governance.
  3. We co-ordinated implementation.
The results
Increased market sales through better availability of product. Reduced working capital and obsolescence.
This project won a Starpack Gold Star Award for Late Pack Customisation.