The client was a globally active leader in the pharmaceutical generics sector.  With a desire to enter the R&D-based pharma sector leveraging its expertise in development and execution, the company embarked on a fundamental review of core/non-core activities.  The objective was to improve each of quality, service, flexibility and cost and to optimize the supply chain to achieve this.

Our consultants were engaged to review sourcing strategy and specifically to optimize the architecture of the complex clinical supply chain.

Our consultants reviewed the key strategic and operational activities associated with the clinical supply chain.  We developed a sourcing strategy that formed the basis of a portfolio of stratified vendor relationships determined by business criticality.  Prioritised actions based on each of the dimensions of (i) strategic value to the business and (ii) the relative capability of outsourced providers were established.

The consulting team identified parallel short- and medium-term activities that formed the path to the optimised supply chain.  In the short-term this involved developing a governance structure for the supply chain that recognized the significant regulatory implications both internally and also externally with vendor relationships. The team generated improvements to workflow, cycle time and to capacity utilisation; established operational metrics to track and improve supply chain performance. Bespoke training and development to enable the transition to the new model was provided. The medium-term action was the implementation of the optimised supply chain model.

The client implementation of the optimized model aligned to the business and sourcing strategies saw the stock price of the company rise by 60% inside two years.