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Supply Chain Prescriptions Translate to $2 Million in Bottom-line Value for a Global Pharmaceutical Company
Technology Category
- Analytics & Modeling - Machine Learning
- Analytics & Modeling - Predictive Analytics
- Analytics & Modeling - Data-as-a-Service
Applicable Industries
- Pharmaceuticals
Applicable Functions
- Logistics & Transportation
Use Cases
- Inventory Management
- Supply Chain Visibility
Services
- Data Science Services
- System Integration
The Challenge
In the pharmaceutical business, the time from raw material extraction to delivery of a finished product can be protracted. Such was the case highest performing product for a global pharmaceutical company. Sold all over the world under different brand names, Isotretinoin is manufactured using ingredients sourced from multiple suppliers worldwide and is distributed from global packing facilities by both sea and air. The company set out to develop a supply chain strategy that would help ensure that Isotretinoin retained its top revenue-generating status in the market. Specifically, they wanted to understand the impact of different supply chain configurations, inventory, total costs and customer service. They partnered with Antuit and its team of supply chain optimization experts to explore how variables such as lead times, minimum order quantities, batch sizes, production yields, inventory buffer stocks and testing costs could impact service delivery performance and profitability.
About The Customer
Antuit is a global analytics solutions provider primarily serving the retail & eCommerce, consumer products, and manufacturing & logistics industries. Since 2013, Antuit has been on a mission to help leading multi-national and high-growth companies predict, shape and meet demand. Combining deep domain expertise with proprietary solutions and technologies like machine learning and AI, Antuit delivers revenue and margin growth, improved supply chain efficiency, and enhanced customer experiences.
The Solution
Over a two-month period, Antuit conducted two streams of work—strategic network design to determine the optimal supply chain network for specific goals as well as constraints and inventory optimization to determine safety stock levels across the supply chain. The team developed a baseline model to quantify DPL’s existing cost to serve its customers. With this model in place, the team was then able to answer strategic questions such as: How changes in production capacities and warehouse constraints affect the optimal network and flow of product through the supply chain. How changes in packing and testing locations impact the cost to serve. How much safety stock is needed to achieve the desired level of service. Antuit conducted several different scenarios, including the introduction of new manufacturing plants, packing locations, alternative transportation modes and more. The strategic models projected cost impacts for each scenario and helped DPL arrive at a number of actionable and illuminating insights. Among them, that the opening of a new packaging plant—an option under consideration—would not be as profitable as anticipated and that air was the preferred mode of transportation over sea.
Operational Impact
Quantitative Benefit
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