Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

+34 91 643 33 23
vipenservicios@vipenservicios.com
La Huerta, 14 28921 ALCORCÓN (Madrid)
Family Law Appeals

Applying commercial excellence in chemicals

For one leading pharmaceutical laboratory, success and double-digit sales growth came with a cost: an overburdened supply chain that threatened to reduce market share.

The effort vastly improved the company’s planning and execution functions, created and implemented a new stock policy that accounted for specific SKUs and key variables, streamlined the order preparation process and reduced distribution transport times.

placeholder
Challenge

Supported by a robust sales force and tight cost controls, Pharm Ltd. experienced sustained double-digit growth over a number of years, only to find that their supply chain struggled to keep pace. In particular, the initial state of the company’s sales and operations planning capabilities limited their ability to account for demand variability or raw material lead times in production and distribution. The work addressed three critical issues for Pharm Ltd.:

  • Improve sales and operations and production planning:

    The teams focused their efforts on a few of the highest-value S&OP levers in order to review the current planning process, identify gaps in the planning infrastructure and analytically understand demand and supply variability.

  • Determine the right inventory level:

    The diagnostic determined the stressors that affected sales and service levels. The teams focused on resolving issues related to higher-than-normal back-orders and lead times, which stressed the entire supply chain and led to delays in medications reaching consumers.

  • Optimize the supply chain for perfect order planning:

    With hundreds of medications in the market, Pharm Ltd. needed a proper method to predict and manage their inventory. Using a mean absolute percentage analysis (MAPE), the teams defined appropriate levels for raw materials and finished products by mapping actual versus forecasted sales on the most important SKUs.

Solution

The teams developed tailored recommendations for Pharm Ltd.’s specific challenges on each dimension of the effort. The work also included a comprehensive review of the necessary tasks associated with implementing each supply chain improvement, including reviewing the IT and talent capabilities that would allow Pharm Ltd. to continue to grow.

placeholder
placeholder

The work also included a comprehensive review of the necessary tasks associated with implementing each supply chain improvement, including reviewing the IT and talent capabilities that would allow Pharm Ltd. to continue to grow.

Result

My work with Pharm Ltd. resulted in a number of significant improvements that moved their supply chain from a reactive one to a source of competitive advantage.

The effort vastly improved the company’s planning and execution functions, created and implemented a new stock policy that accounted for specific SKUs and key variables, streamlined the order preparation process and reduced distribution transport times.

By the numbers, the effort:
  • Reduced lead time by 43%;
  • Decreased variability by 50%;
  • Lowered the risk of back-order by 95%;
  • Increased stock for finished goods by 10%.
  • One
  • Two
  • Three

Looking for a professional help or consultation?