Developed a new operating model for a global medical device company resulting in overall reduction in supply chain cost base directly related to reducing CapEx and OpEx

Global Medical Device Company

 

Business Strategy, Technology Strategy, Private Equity Value Assessment, Operating Model / Organization Design

Challenge

  • A global medical device division of a leading multinational consumer health company
  • With the company’s global footprint reaching several countries and spanning a variety of product types, a focus on identifying an optimal organization structure to support building growth engines and maintaining cash-generating operations was crucial
  • The acquisition culture and growth of client coupled with strong gross margins
    had resulted in the cost base of all scoped sites to have autonomous operations
    with severe operational inefficiencies
  • This had been compounded by the lack of a synergistic organizational structure and a common strategic direction.
  • A quick turnaround Assessment coupled with a high level of organizational design, change management and supply chain expertise
  • Development of a new operating model (organizational design, governance framework and capability improvement plan for supporting key processes and interfaces with other supply chain functions) to strengthen strategic and competitive advantage in manufacturing, to align and optimize resources and to facilitate an integration to a “leading” end-to-end supply chain
  • Accelerated diagnostics framework that quantified the potential for sustainable cost and working capital improvement

Approach

Benefits

  • An overall reduction in supply chain cost base directly related to reducing CapEx and OpEx
  • Developed a more centralized operating model, with targeted site based
    execution supporting approximately ~$128M in cost reductions over three years
  • Developed process for project governance and planning to support future execution of initiatives and continuous improvement efforts
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