CLIENT CASE STUDY


Global pharmaceutical company: reducing operating costs and improving service

Accenture works with a global pharmaceutical company to reduce operating costs and improve service through a large-scale supply chain transformation.

Overview

With localized supply chain operations, a leading global pharmaceutical and health care company determined it needed to regionalize and standardize its commercial supply chain to reduce costs and improve responsiveness. The pharmaceutical company turned to Accenture to help design and implement a new operating model.

Accenture worked with this pharmaceutical company to design and deploy a regional supply chain planning and forecasting hub, a rationalized regional warehouse and transportation capability, and a new trading model. Today, the consolidated network allows this company to improve its markets’ customer service levels, reduce inventory and deliver operational cost savings of approximately 15 percent.

Opportunity
Due to a changing product portfolio and evolving customer requirements, one of the world’s leading research-based pharmaceutical and health care companies needed to increase its focus on cost reduction to maintain profitability within the mature European market. It also was seeking to implement a more responsive and nimble supply chain model that would enable the company to take advantage of future regional growth opportunities.

The pharmaceutical company turned to Accenture to help design and implement a new supply chain operating model.

Solution

Accenture worked closely with the client through the entire lifecycle of the change—from developing the supply chain operating strategy through to implementing an operational planning hub and on to going live with a new warehouse distributing product to wholesalers, pharmacies and hospitals. This included:

  1. Strategic Review of Supply Chain Operations

  2. Detailed Design

  3. Implementation

Results
While the pharmaceutical company continues the rollout of the remaining capabilities, the program has already delivered:

  • Improvements in forecast accuracy to meet year-end targets

  • Improved product availability across all therapy areas and a reduction in stock-outs

  • Overall reduction in finished goods inventory

  • Cost savings in the logistics and distribution network by reducing the number of warehouses (This keeps the program on plan to deliver annual benefits of 15 percent.)

  • Simplified and standardized logistics operations with all live markets’ volumes going from supply sites into a multimarket warehouse with standardized ways of working

  • Improved delivery service level A rationalized trading model that has 99.9 percent of intercompany invoices “right first time”