Case Study | Enhancing Operational Efficiency at a Leading Pharmaceutical CompanyDeveloped, piloted and rolled out an end-to-end flow improvement program to reduce product cycle times and inventory levels
In response to the dynamic challenges faced by a prominent pharmaceutical company during the global launch of a groundbreaking product, OSICS NETWORK embarked on a strategic initiative to enhance operational efficiency and supply chain agility.
With a commitment to optimizing product cycle times and reducing inventory levels, our team was tasked with navigating complex production demands, unreliable demand predictions, and the imperative to swiftly adapt to market fluctuations.
SITUATION
A renowned pharmaceutical company was poised to introduce a revolutionary product in multiple countries, consecutively. As demand surged with each new launch, the company’s production facilities struggled to meet the escalating requirements.
The inherent challenge lay in the unpredictability of demand, as scant data points were available for estimating the needs of this innovative product. In response, the company’s leadership made a strategic decision to initiate a project aimed at reducing the end-to-end cycle time to market, encompassing production timelines and intermediate inventory levels.
The overarching goal was to expedite product delivery to market and establish an agile supply chain capable of promptly responding to shifts in demand.
APPROACH
OSICS NETWORK assembled a cross-functional, globally distributed team, comprising local representatives from all production sites and additional corporate supply chain experts. Over the course of four weeks, an exhaustive end-to-end diagnostic was executed to pinpoint bottlenecks and to gain insights into the challenges encountered by production sites and supply chain coordinators.
This comprehensive analysis informed the development of a multifaceted strategy, encompassing initiatives designed to streamline production cycle times, alleviate bottlenecks, simplify the supply chain, reduce intermediate inventory levels, and minimize air freight reliance.
Furthermore, a new weekly end-to-end governance structure was established to foster collaboration and monitor progress on these initiatives. This platform served as a forum for addressing common challenges and finding collective solutions.
IMPACT
The outcomes of OSICS NETWORK’s strategic interventions were nothing short of transformative:
- Production cycle times were slashed by an impressive 30-40%, significantly enhancing the company’s ability to respond to market demands promptly.
- Intermediate inventory levels were reduced by a commendable 20-30% compared to initial projections, thereby optimizing working capital.
- The value chain was streamlined by ceasing shipments to external testing laboratories and bringing all testing activities in-house, resulting in improved quality control and cost savings.
- Complete cessation of air freight usage led to substantial cost reductions while maintaining product integrity.
- The newly introduced weekly governance structure, initially implemented during the project’s first phase, proved so effective that it was retained for ongoing initiatives and continued progress monitoring.
- The methodology developed by OSICS NETWORK was successfully replicated across different product value chains, consistently delivering comparable results and solidifying its role as a best practice within the organization.
In navigating the complexities of launching a groundbreaking pharmaceutical product, OSICS NETWORK showcased its commitment to operational excellence, supply chain optimization, and adaptability. By significantly reducing production cycle times, optimizing inventory levels, and streamlining the value chain, we empowered our client to meet market demands efficiently and maintain a competitive edge.
The success of this initiative underscored the value of a collaborative, data-driven approach and serves as a testament to our ability to drive transformative change within the corporate landscape. As we look to the future, we remain dedicated to supporting our clients in their pursuit of operational excellence and sustainable growth.