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CLIENT CASE STUDY


Pharmaceutical company: Reducing costs with a global transportation model

A globally integrated supply chain strategy helped a leading pharmaceutical company build share and increased delivery in emerging markets

Overview

As a long-time client, the company was familiar with Accenture’s capabilities in supply chain and logistics management and its ability to design innovative transportation solutions. It looked to Accenture to help create an integrated transportation management strategy and a strong, centralized transportation and global trade management function.

After sharing its strategic plans, the pharmaceutical company and Accenture jointly created an integrated transportation management strategy that focused on delivering its products to customers in a more coordinated and cost efficient manner.

Opportunity
This pharmaceutical leader needed to transition from its current regional logistics process to an integrated transportation management strategy to get products to customers more efficiently and cost effectively. Like most large pharmaceutical companies, this company is working hard to build share and increase delivery in emerging markets. Developing a more efficient, responsive and globally integrated transportation program from its current regional transport operations would be a critical factor in achieving its goal. A global transportation operating model would create the synergies, oversights and controls to transform the business, improve logistics planning and reduce costs.

Solutions

Collaborating closely with the company’s global transportation staff, Accenture strategy, industry and supply chain specialists identified potential savings and opportunities in the company’s global transportation network.

Early on, Accenture was able to target quick-hit cost-cutting initiatives in areas such as mode optimization and shipment consolidation.

The team’s next move was to define, build and implement a transportation operating model, the backbone of which is a global transportation control tower to help oversee its global operations in more than 140 countries.

Accenture also helped build a supplier relationship management program to strengthen partnerships between the company and its logistics services providers.

Results

The program spanned two years and delivered measurable savings and capabilities to the client at clearly defined intervals. The company was able to realize dramatic visibility improvements facilitated by the control tower, raising network performance while reducing costs. While the client had an average cost reduction target of 4 percent per year, Accenture doubled the achieved savings to 8.9 percent. Ultimately the company was able to distribute its products to customers and patients globally with greater speed, consistency, responsiveness and security.

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