Crimson & Co

Supply Chain Consulting

Selected Pharmaceuticals & Healthcare Assignments

European business transformation project

We transformed this client by: leading a rapid impact programme that successfully raised ‘on time in full’ service levels to customers from 8% to over 90% in six months; reducing lead times significantly through reduction in the planning timeframes; and, developing a strategy for their distribution infrastructure that provided better service levels at a lower operational cost.

  • The shop-floor service improvement stream exceeded its targets. As part of the programme, we implemented a hierarchy of measures for customer service. These results were then published to the business on a weekly basis through an Intranet site linked directly to the appropriate IT systems. These measures showed that the project achieved 91.6% OTIF within the six months, during which time we developed the capabilities of members of the client staff to ensure that this performance measurement system became an integrated part of the ongoing business processes.
  • The planning and supply stream redesigned and implemented tactical performance improvements in manufacturing, procurement, supply and supply planning, moving the business from monthly to weekly planning cycles. We implemented and ran operational management processes to increase NPD performance and improve product availability. Significant reductions in lead times were achieved for most bought-in components, from 12 weeks average to 4-8 weeks.
  • The distribution infrastructure stream developed a five-year European logistics strategy covering ex factory finished goods transport, warehousing, customer deliveries and customer returns. Benefits of over £9m pa were shown to be available, building on a number of initiatives including stock reduction, range rationalisation, and customer optimisation.

European business integration

Following a number of acquisitions, this European healthcare product manufacturer needed to integrate the businesses, based on implementation of a tax efficient structure and a single ERP system. We led the commercial process stream of the European systems integration project from process design to implementation. We managed the JBA ERP integration with the APS System, i2 Technologies, and defined fair share allocation processes to support ATP.

UK distribution and warehousing strategy

This OTC pharmaceutical manufacturer had site issues that would take considerable capital investment to resolve and required an overall review of their likely physical infrastructure needs over a 15 year time horizon. We analysed the suitability of the various UK sites in the light of changing customer replenishment trends and the company's growth plans. The output was a 15 year strategy that balanced cost and risk for the business.

Pharmaceutical warehouse operations improvement

This pharmaceuticals & pharmacy supplies distributor needed to remove significant costs from its warehousing operations to help defend itself against a takeover bid. We visited several warehouse operations throughout Britain, containing automated and manual, single and bulk picking operations. Using activity analysis and process mapping, we were able to identify £5.85m of realisable savings by alterations to goods-in procedures, stock control system, manual ways of working and time allowances.


Full value procurement

The healthcare client had little or no historical focus on the procurement of indirect goods and services. Most of the buying was transacted by the people who required the goods/services, meaning that little synergy had been achieved across, or even within, their sites. We project managed a major UK procurement initiative involving over 50 staff, that delivered savings of £7.8 million on indirect expenditure over a 12 month period. The project started with a diagnostic and construction of an expenditure database, moved onto strategic sourcing on a commodity-by-commodity basis facilitated by category teams, to conclude with the recruitment of staff and implementation of centrally managed processes and systems.

"Crimson identified significant cost reduction opportunities through a short, focused diagnostic. They were great with our people … I recommend them to anyone who wants a pragmatic approach and real results."

Ian Claydon-Butler
Vice President Procurement
Chiron Vaccines

 

 

 


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