Supply Chain Transformation

Client Initiative Situation How We Helped Outcome
client

Client

International Manufacturer of Medical Devices 

initiative

Initiative

Supply Chain Management Transformation

situation

Situation

Following an acquisition by a U.S.-based company, an international medical device manufacturer engaged RGP to help improve their Supply Chain function.

Management deemed cost and performance as sub-optimal. They wanted to mirror the parent company’s business model and change from a fixed price to a cost plus approach, with significant cost reduction targets identified.

howwehelped

How We Helped

RPG analyzed and reviewed the company’s end-to-end Supply Chain and recommended some fundamental changes. Our activities included:

  • Identifying product redundancies and stock rotation levels between the two companies
  • Reducing product panel and identified sales opportunities for eliminated SKUs
  • Analyzing workflow and organization by work stream and reviewed stock management processes
  • Designing and implementing an audit function for medical devices in France and Brazil
  • Implementing outsourcing solutions for downstream activities to foreign markets: suppliers’ qualification and allocation revamping for improved local solution delivery (quality, agility and cost improvement)
  • Reviewing component purchasing category, improving quality and standardization capabilities (suppliers panel review)
  • Supporting stabilization and optimization of information technology tools (ERP and WMS)
  • Recommendations for organizational changes in support functions with a focus on customer service teams
outcome

Outcome

Reduced inventory levels by two-thirds on low rotation products without negatively impacting service levels.

  • Reduced low rotation SKUs by 30% while maintaining service levels
  • Reduced level of control required by purchasing by 25% (roughly from 4,000 to 3,000 SKUs accurately controlled)
  • Documented all Supply Chain Management processes and workflows
  • Designed and developed a training program for continuous skills improvement