Situation
- The client was a $150M+ division of a multinational pharma company
- The company had recently lagged forecasted performance and profitability targets
- A large customer had dropped their demand significantly (>50%)
- The product portfolio was skewed towards lower-margin products
- The companies operating model and budgets were flexible to react to the current product mix and volume
Bespoke Solutions
- SLKone worked with leadership to define objectives and cost targets
- Evaluated sub-ledger cost details to understand true drivers of spend and areas for improvement
- Defined activities, roles, and positions to align business strategy with sustainable organization structures
- Created a site consolidation model to evaluate manufacturing capacity constraints and financial impacts
- Performed commercial analyses evaluating several scenarios of customer and product mix to improve bottom-line financials
- Evaluated manufacturing equipment utilization and warehousing storage to minimize excess overhead costs
Leading With Results
- Identified the need for a “Cost Containment Culture” by establishing functional targets and specific recommendations to reduce spend
- Improved reporting structure to align leadership, commercial, and manufacturing functions around metrics and measures
- Developed a proactive product portfolio approach leveraging scenario-based models including financial and operational impacts to manage commercial strategies
- Identified 50% Increase in EBITDA through opportunities including: increasing span of control, reducing indirect spend, adjusting manufacturing scheduling to volume, and commercial / customer changes