Program Management: Manufacturing Network Rationalization
Industry consolidation has left many pharmaceutical companies with excess manufacturing capacity. A major pharmaceutical company faced an especially serious overcapacity problem in its manufacturing network. As the portfolio matured and faced generic competition, sales volumes fell steeply. In addition, there was a proliferation of low-volume SKU’s in many markets across the product portfolio. The company identified a high-level strategy and set preliminary targets to rationalize their manufacturing network and product portfolio. The company realized it needed outside help to provide the necessary degree of oversight and coordination to ensure that the overall objectives were met. In particular, the client was determined to realize its financial goals while avoiding supply chain disruptions and compliance problems.
MedPharma Partners was engaged to help establish the design for a program office that would coordinate the efforts of dozens of teams actively engaged in the network restructuring projects. These projects primarily comprised product transfers and building/facility closures. To enable the effort, MedPharma developed a database incorporating detailed SKU information by site manufactured and sold-to markets. This information was used by the client and MedPharma to identify alternative manufacturing sites and opportunities for rationalizing products and markets.
MedPharma developed a variety of tools and templates to facilitate the transfer and decommissioning projects, including master project plans to leverage knowledge and provide consistency across global projects. Finally, MedPharma assisted the client in identifying the organizational structure for the program management office, as well as the key management and review processes needed for the program to run effectively.
"MedPharma Partners’ provided us with valuable tools that helped us get a handle on the sizeable challenge ahead of us. I was impressed with their insights and how quickly they responded to changes as the project evolved." -- Senior Director, Network Strategy
