International Manufacturer of Medical Devices
Supply Chain Management Transformation
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.
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
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