Supply Chain Segmentation Strategy
Our Client:
Supply Chain (SC) Leaders for a $42BN USD global pharmaceutical supply chain within a multi-national healthcare company
Project Description:
Delivery of Implementation Plan detailing how our Client should reconfigure and govern its SC aligning with its products and markets segmentation to deliver competitive advantage via differentiated basis of competition aligned to SC capability.
Benefits:
Clearly articulated vision, One Year and Five Year Future States
Proof of Concept Site Pilots confirming Segmentation Strategy & business case; practical implementation on sites, operations and value chains
Segmentation Governance developed & implemented
Results:
Segmentation. Decision Making Policies implemented to refocus resources to strategic products and markets including:
Service Levels i.e. Product Availability
End to End Cots and Capital
Capital Spend repurposed to Strategic Products
Increased strategic product capacity on key manufacturing sites
Challenges and Objectives:
Client’s SC primarily operated to a ‘one size fits all’ approach. SC Segmentation for Products and Markets was identified as next step in their SC Transformational Journey. As SC Segmentation was a new concept within Pharma SC, education to increase knowledge and understanding across organisational levels was important.
Our Scope:
Work with SC Strategy and SC Segmentation Scoping Teams to develop an actionable multi-year Segmentation Implementation Programme plan including proof of concept pilots on selected internal manufacturing sites to articulate operational & financial implications.. Our starting point was their existing Segmentation Master Document.
Our Methodologies:
Whilst we used different methodologies, the most important were:
Gartner SC Models and Frameworks
Five Stage Maturity Model
Customer-Driven SC through Customer Segmentation, SC Segmentation & Cost to Serve
Apply SC for Business Value
Use the Outcome Segmentation Model to Communicate Design and Benefits
Make Better Trade-offs by Aligning Business Strategy, SC Segmentation and Supply Management Capabilities
Porter’s Competitive Advantage Model
Creation of a High Performing Team
Team Building
Knowledge Sessions
Highly interactive workshops
Coaching
Our Approach
Sponsor Alignment- we worked closely with our Project Sponsors to understand and align on their expectations and agreed the outline project structure i.e. Steering and Expert Teams.
Team Creation & Initial Implementation Plan Development
To create a high performing team and prepare to build out the key components of the future project roadmap, we designed and facilitated a highly interactive workshop to deliver Team Alignment and Plan Development.
Structured as follows:
Educated and baselined on SC Segmentation Master Document
Developed overall vision, future states and success at one and five years
Agreed the scope
Mapped out and agreed project workstreams, with their specific
Success criteria, scope and frameworks
Existing and new projects/programmes to deliver
Decision matrix to challenge and prioritise these projects/programmes
Timelines and key milestones
Finally, we
Defined strategic goal measurements
Developed an initial Implementation Plan including Communications
Initial Implementation Plan-Detailing, Challenging and Testing:
To detail out the Initial Implementation Plan, each work stream:
Finalised list of projects/programmes
Challenged against Decision Matrix
Developed final priorities including recommendations to be tested in Site Pilots
Agree three suitable ‘proof of concept’ Site Pilots based on SC Segment type
Co-ordinated these Site Pilots and incorporated the learnings into the Implementation Plan
Implementation Plan Finalisation and Client Handover:
Final Implementation Plan incorporated:
Prioritised resourced Programme Plan
Next three Site Pilots
Strategic Planning and Governance
Communications & Change Management Plan
