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Customer Service Level Recovery Program For International Fortune 100 Healthcare Company
A leading international healthcare company with operations in all major continents and countries
Significant customer service losses were being experienced for life-saving, injectable and oncology drugs as a result of unknown causes and supply chain issues. With a customer service level target of 95% across the supply chain from manufacturing located in Australia to end-customers such as those located in Europe, the project utilized an outside-in approach to determine the exact causes of service loss, magnitudes and corrective actions. Each root cause required a unique solution to increase overall service levels beyond 95% as per the corporate strategic targets.
· Outside-in assessment and root cause analysis
· Identification, measure of magnitude and systematic drivers of service loss including Pareto analysis to determine addressable losses
· Development of improved forecasting, planning and manufacturing methods including lean measures to overcome losses
· Risk mitigation and sustaining quality standards
· Deployment of 6 kaizen project initiatives/charters
Using an outside-in approach, from customer to suppliers to manufacturing, key flow paths and critical supply chain points were identified. Service level was measured at these critical points using Pareto analysis to determine key drivers at each phase of the product sales and operation process including forecasting and requirements planning for manufacture, supplier DC and customer DC. Additionally, quality standards and product integrity were audited to ensure that correct product was sold to the correct market incorporating complexities generated from FDA and other food and drug administration authorities by region and country. A new methodology was developed to better understand and eliminate on-going root causes and failure modes in the supply chain including the complicated process of batch planning, manufacturing, storage, international logistics and last mile delivery. The new methodology was incorporated into a project plan devised of up to six initiative charters designed to integrate into the in-house company continuous (kaizen) improvement program. The work was handed over to the client with considerable gains and successfully addressed the service loss issue.
The project was delivered on time, under cost and total supply chain savings were measured with a greater than 5% increase in aggregate service levels valued at over US$50m annually.