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OTC PHARMACEUTICAL INDUSTRY :
Strategic Decision Support |
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Client: |
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A rapidly growing tier-two pharmaceutical company. |
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Problem: |
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The company had grown more
than ten-fold in sales over the past two years. Having relied on a manufacturing
outsourcing business model during the launch of the business, it
was now time to re-examine the breadth of the product supply chain - from
API sourcing through final product distribution - to determine the
best sourcing strategy for the coming five years of anticipated
growth. Several existing cost reduction projects were underway. Did
these projects still make sense in the face of the expected growth? |
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Approach: |
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Tunnell worked with the client
to lay out the real options the company had for each step of the
manufacturing process from API supply to the distribution of final
products. Tunnell's subject matter experts provided the critical
expertise to get the real possibilities on the table for the client.
By determining the economic value of each step's capacity and the
value of flex capacity (additional capacity sources and optimizing
existing sources), Tunnell identified the optimal capacity by source
and volume across the entire product supply chain. Tunnell's
financial model tailored specifically to the client's situation
accounted for the breadth of issues and risks (e.g. business continuity
disruptions, competitor product launches, volatility of sales)
facing the client over the next five years and beyond. Existing
projects were integrated with the new roadmap in order to right-size
capacities across the product supply chain. |
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Results: |
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The outcome? In six weeks
the executive team had a clear, precise manufacturing capacity
plan with optimal flex capacity commensurate with the risk and
uncertainty of future sales. Board of Director approval was
immediate due to the clarity and rigor in evaluating the many options
before pinpointing the best strategy for the client. |
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