Case Study: Bio Technology

biotech

Client

  • International industrial enzyme manufacturer
  • $400 million revenues
  • Leading protein engineering firm, R & D award winner, “Best Places to Work” winner

Background

This is one of the largest global manufacturers of industrial enzymes. The company is a recognized leader in biochemical development and supplies enzymes to many of the world's largest detergent, grain and textile corporations.

biotechThe company had tripled in size in the previous two years, primarily through the acquisition of major production facilities.

The company had concentrated all of its efforts on improving its manufacturing technology and has been clearly recognized as the industry leader in production quality and costs. They had, however, neglected the creation of an effective supply chain, by which they could deliver quality products to the customer in a timely and cost-effective manner.

Inventory levels had grown well beyond acceptable levels. Distribution costs were excessive. Repacking and rework had become the order of the day. Most customer complaints were due to supply chain related problems.

Key Issues

  • The supply chain functions were fragmented throughout the global organization
  • Demand forecast was ineffective, ostensibly due to outdated systems, but actually due to lack of appropriate focus and training
  • Production plans were at the product level, not accommodating package sizes, causing excessive repackaging costs
  • Units of measure and package codes were inconsistent across the organization
  • Inventories were out of control, with over 100 days on hand vs. a target of 60 days
  • 30% of US orders generated credit memos, with over 100% in Europe
  • Customer complaints had increased fourfold with new acquisitions.

Benefits/Strategic Results

We assisted this client with a design and an implementation of his global supply chain comprising several core components. Results are available on request.

  • Labor Cost (Overtime) Reduction of 14%
  • Testing Cycle Time Reduction of 12%
  • Inventory Reduction of 8%
  • Packaging Error Rate Reduction of 34%