Global Management: Establishing Spare Parts Management Program Across 35 Production Sites Resulting in Annual Savings of >USD 50m

Situation

• Following significant improvement to their spend transparency, a global pharmaceutical company identified sustainable acceleration potential to indirect spend savings for the coming 3-4 years
• The executive team set the ambition to achieve savings of USD 100m+ on a sustainable basis with much to come by increasing the maturity of their spare parts management

Solution

• Rolled out new processes, tools and training for handling of spare parts in over 35 sites globally including structural changes across global, regional and local
• Critical to success was per site understanding of gaps in capability, capacity and site head support fostering exchange of best practices and cross site trainings
• Led with a client-ownership approach to enhance buy-in and gradual hand-over to the business of the project to fully sustain and embed changes

Impact

• Developed, implemented and rolled out a comprehensive spare parts management program over 36 months
• Implemented structural changes in processes and tools and made change sustainable through capability building and actively creating buy-in
• New way of workings between manufacturing, engineering, procurement and finance on spare part management of suppliers and inventory resulted in >USD 50m