Life Sciences Logistics & Distribution
SITUATION
One of largest integrated life sciences businesses needed to simplify its logistics and distribution network and reduce costs by €65 million.
DRIVER GOAL
- Reduce global distribution costs by €65 million over 2.5 years.
RESULT
- Made specific recommendations to reduce costs by €26m in benefits through improved freight practices, €27m through planning, forecasting and supplier management and €30m by reduction in number of sites.
Case Study
Reduce Costs & Improve Service in Logistics and Distribution
Issue
One of largest integrated life sciences businesses, with customers in 144 countries and an extensive network of 531 warehouses across 6 business units (pharmaceuticals, biologicals, animal health, consumer care, diagnostics and diabetes care) engaged The Highland Group to substantially simplify its logistics and distribution network and reduce costs by €65 million.
Highland Approach
The Highland Group designed and administered a market requirements survey to 242 customers in NAFTA, Europe/Middle East/Africa, Asia, and Latin America. Based on the survey of what customers believed to be most important, The Highland Group proposed recommendations to the company’s distribution policies, practices and overall strategy.
Actions Taken
- Developed a System For Managing to provide the Distribution and Logistics management team with a single source report summarizing the key operating indicators of the business.
- Designed a new process for managing all proposed process improvement opportunities under one central authority.
- Identified opportunities to reduce freight costs in the U.S. and Europe by ~ €26 million, or roughly 20% of freight costs.
- Reengineered the planning and forecasting process, which will benefit the company in the areas of inventory management, scrap management, supplier management and productivity.
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