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INDUSTRY FOCUS

Healthcare and Pharmaceuticals

A Fast, Connected Supply Chain.

Healing the Pain in the Supply Chain: In an era of globalization, today’s healthcare industry is faced with continuous market change, intensifying competition, cost pressures, and increasing regulatory requirements. Adding to this supply chain complexity are shorter patent periods that require supply chain efficiency and effectiveness to fully capitalize on opportunities.

For these organizations, advancing supply chain performance and reducing cost are essential to a winning business strategy.

Through solutions like improved inventory planning, material and supplier management, network optimization, and managed transportation, LeanCor’s consumer product clients are meeting their business challenges head-on. They’re reducing costs, increasing margins, and improving customer service levels for sustainable business growth.

   


  

pharmacy_bottles.541af4e04a963-1.jpgThe work now for pharma organizations is on the end-to-end supply chain.” Martichenko explains. “Start at the doctor’s office, the hospital, Walgreen’s and CVS to understand consumption. What are their needs and what does pharma need to do to meet them? Having a true end-to-end supply chain is most important in solving this issue. Pharma, like many industries, has to concentrate on operational excellence."

- See more in the Supply & Demand Chain Executive article: "The Changing Pharma Landscape"

 


 

How We Help Healthcare and Pharmaceuticals Companies: Case Studies

 

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Inbound Material Flow Assessment

A hospital equipment manufacturer had experienced significant growth through organic means as well as through the acquisition of similar organizations in the same industry. The customer partnered with LeanCor Consulting to analyze the current state of inbound material flow and inventory management for one of Midwest facilities in order uncover opportunities for waste reduction and efficiency throughout its manufacturing and distribution network.

LeanCor provided an inbound logistics network assessment to identify waste in the current inbound network and identify cost reduction opportunities through development of a stable, planned transportation design that allows optimal mode utilization, shipment consolidation, and visibility to in-transit material. In addition, LeanCor provided an intra-plant material flow analysis, inventory analysis, and a step-by-step road map.

RESULTS WITH LEANCOR: 

  • $1.2M IN LOGISTICS & RESOURCE REQUIREMENT COSTS
  • $881K IN INVENTORY CARRYING COSTS

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Distribution Network Design
 
A global life sciences company was challenged with high freight costs, high inventory levels and complex processes, delays due to overprocessing, and overall lack of delivery consistency. The distribution centers were not serving a strategic function, warehouse operations lacked experience, and the company as a whole lacked a corporate wide concept of operational excellence. Many products were typically on backorder, and the restructuring of several locations and systems had caused major disruption in the last six
months.
 
LeanCor created a logistics network strategy based upon a data-driven, comprehensive overview of total logistics costs (including warehouse, labor, and freight). This strategy would serve as a foundation for the client to continue its fast-paced
growth while improving satisfaction, margins, efficiency, and competitive advantage.
 

RESULTS WITH LEANCOR:

  • $3.7M IN LOGISTICS COST SAVINGS
  • 33% REDUCTION IN DISTRIBUTION CENTERS (6 TO 4)
  • IMPROVED CUSTOMER FILL RATE

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End-to-End Value Stream Mapping

Industry changes had necessitated
freeing up working capital and reducing inventory throughtout the entire value stream for a healthcare company.  With low volume and high demand variability, the client required a lean fulfillment stream that would enable velocity, collaboration, flow, visibility, flexibility, perfect delivery, and maximum value for the customer.

LeanCor’s Lean Deployment team conducted a value stream mapping session with a cross-functional team at the client’s operation. By mapping the end to end supply chain from tier I
supplier to the customer, they assessed the current state and designed a future state fulfillment stream to achieve the client’s goals.

RESULTS WITH LEANCOR:

  • LOWER COSTS
  • PERFECT ORDER FULFILLMENT
  • INCREASED FLEXIBILITY
  • REDUCED INVENTORY

 

   

See Your Supply Chain as a Competitive Advantage

Since business decisions ultimately manifest in the supply chain, we help you see your supply chain as a feedback mechanism - an abundance of critical information needed to improve business performance, increase customer value, and eliminate waste. Solutions include:

• End-to-End Supply Chain Advancement ™
• Lean Transformations (Enterprise-Wide and Functional Areas)
• People Development: Training and Education
• Performance/Cost Assessments
• Inbound/Outbound Transportation Optimization

• Outsourced Transportation Management +™
• Inventory Flow and Right-Sizing
• Network Strategy and Design
• Distribution Center Design, Operations Improvement

 


 

 Typical Client Results

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To Speak With Our Healthcare and Pharmaceuticals Market Leaders, Please Contact Us. 

 

Download a PDF with LeanCor's Healthcare and Pharmaceuticals Solutions