Background & the Client Challenge
The client is one of the top 10 pharmaceutical manufacturers globally. They have expanded one of their Ireland based facilities, to develop a bio-pharma campus, with production scaling to full capacity by 2022.
We were engaged to perform a review of the warehousing strategy to ensure it would scale correctly to support this expansion. A detailed 60-month plan needed to be developed.
What We Did
A detailed review of all on and off-site warehousing activities was performed and a detailed needs analysis was mapped covering a 60-month period.
We completed a 60-month capacity expansion plan review and overlaid this onto the existing warehousing infrastructure, resources and 3rd party logistics support.
Detailed mapping of the set-up and operation of warehousing and material movements on-site provided the “As Is” structure. A Lean Six Sigma review of the process identified the “Future State”.
By combining these, we developed a plan which resulted in a leaner and more efficient warehousing solution. This strategy also meant the client did not need to invest in additional warehouse capacity resulting in significant cost avoidance.
Results
$7m cost avoidance by demonstrating that capacity could be made available within the existing infrastructure in combination with efficient use of 3rd party warehousing
Development of “Control tower” strategy for centralised warehouse management
Lean Warehousing Review resulting in 30% Improvement in efficiencies identified
Increased use of outsourcing of non-core activities resulting in c.$100k in annual savings
