We led a project to avoid $2M capital expense on additional storage space

Challenge

A large global pharmaceutical company with markets in 50+ countries was performing supply chain planning on MS Excel because they failed to effectively adopt their Oracle Advanced Supply Chain Planning module. This issue presented significant challenges as the organization prepared for an anticipated 300% growth over the subsequent few years.

Evaluation

A gap analysis was performed, which uncovered significant functionality gaps that prevented the effective use of the ERP planning modules. Insufficient time was being spent with planners to understand their requirements. In addition, inexperienced planners who were comfortable with spreadsheets and unfamiliar with ERP systems were resistant to the change. The initiative was a low priority in some functions, so ERP data transactions were not always timely or accurate.

Approach

We resolved 90% of the gaps via configuration changes, light customization, and ERP training. In addition, we delivered APICS supply chain training to operations employees to develop their knowledge of standard supply chain terminology, planning methodologies, and practices. Finally, we provided coaching to support employees in making the transition.

We developed cross-functional teams to reduce the silo effect and create alignment across the different departments involved.

We redesigned each planning process, including demand planning, master scheduling, MRP, production scheduling, and DRP, to remove manual steps and automate in ERP where possible. In addition, we developed user-friendly analytics to enhance adoption. For example, we utilized business intelligence analytics to establish MRP-related metrics to quickly identify planners that required more support.

Results

The utilization of Oracle planning solution improved from 0% to 100%. All clinical and commercial products transitioned to ERP-based planning, including finished goods, drug substances, intermediates, and raw materials. In addition, the client adopted the system at all global sites, where they saw a 15% increase in forecast accuracy due to improved demand planning processes and analytics. Finally, we were successful in standardizing all planning processes across all sites.