Case Study

Cost Assessment and Opportunity Identification $150M Division of a Multinational Pharma Company

"SLKone performed a rapid cost assessment identifying areas for immediate cost out as well as long-term transformative actions to drive productivity. The improvement plan set an execution focused roadmap for strong, sustainable profitability growth in the business"

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
Case studies and expertise may represent projects and engagements performed by SLKone team members prior to their employment at SLKone
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