Change Management Leads to $333 Million in Cost Savings

Challenge

This pharma company lacked end-to-end supply chain planning visibility which resulted in more than $500M in annual inventory losses, inflated inventory levels, and ineffective utilization of talent and equipment. Change management was a priority to ensure speed of acceptance and ROI.

Solution

Cloud Based End to End Supply Chain Implementation

Our team delivered a simplified global operating model for supply chain processes and developed innovative technologies to align supply / demand views and plan more effectively. The scope of the project was expansive covering 22 client sites, four planning hubs and five external manufacturing sites. Change management and communication efforts touched over 2,500 employees worldwide.

Outcome

After a successful implementation of the new process and technology, we helped the client achieve end-to-end visibility and vastly improved supply chain planning with a single version of the truth. The following benefits were realized:

$130M saved annually by reducing surplus on-hand inventory

38% decrease in inventory discards with a value of $200M annually by offering more accurate inventory forecasts

$3M annual labor savings achieved with the introduction of more efficient and effective processes

Rediscover the power of personalized consulting with alliantConsulting. Contact us today to schedule an initial consultation and begin your journey towards improved profitability and long-term value.

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