Supply Chain: Establishing Transformation Program with Organization-Wide Alignment and Ownership for a Large Pharmaceutical Company

SITUATION

• A successful pharmaceutical company was driven by an innovative product portfolio, however, it was unprepared for a future of patient value-based outcomes and digital supply chains
• It had industry leading service OTIF, however, this was at a cost of very high inventory levels, often leading to write-offs due to shelf-life constraints
• Several projects had been kicked off, but with no clear link to the target future state

SOLUTION

• Conducted a series of well-prepared workshops with the global supply chain leadership team to define the goals, define clear focus area for the transformation and engage with the full supply chain organization to understand and take ownership to drive the program 
• Given the unique culture of the organization, set up a transformation office with a servant leadership approach, enabling and coaching project teams, sponsored by sub-teams of SC leadership, to adopt an end to end cross-functional mindset
• Established strong collaboration between supply chain and collaboration to focus on patient value creation hence impacting revenues

IMPACT

• The supply chain transformation program is now completely understood across the organization from leadership to the front-line managers
• The program is well set-up to deliver USD 1bn in inventory savings and USD 100+ m in cost-to-serve savings, and more importantly oriented towards revenue impact creation