HR Strategy for Global ProcurementSurface Transport & Logistics
A leading pharmaceutical company faced significant challenges with an overburdened supply chain due to rapid growth and double-digit sales increases. AFTDC was engaged to enhance their HR activities and overall HR strategy to support global procurement efforts and improve operational efficiency.
AFTDC’s strategic HR interventions and technology integration enabled the pharmaceutical company to overcome operational challenges, achieve substantial cost savings, and enhance productivity. This case study underscores the critical role of effective HR activities and strategies in driving business success.
challenge
- Underutilization of Technology: The company relied heavily on manual processes, leading to delays and inefficiencies.
- S&OP Planning: The sales and operations planning (S&OP) process needed refinement to better align with demand and supply.
- Inventory Management: Managing inventory levels for numerous medications was challenging.
- Supply Chain Disruptions: Issues such as high back-orders and long lead times affected product delivery.
solution
- Technology Integration: Implemented cutting-edge technology to streamline HR processes and improve real-time data accessibility.
- Enhanced S&OP Process: Focused on key S&OP levers to review and improve the planning process, identifying gaps and understanding demand and supply variability.
- Optimized Inventory Management: Used mean absolute percentage error (MAPE) analysis to determine appropriate inventory levels for raw materials and finished products.
- Supply Chain Optimization: Diagnosed and resolved stressors affecting sales and service levels, focusing on reducing back-orders and lead times.
results
- Operational Efficiency: Vastly improved planning and execution functions.
- Reduced Lead Times: Lead times were reduced by 43%, enhancing delivery efficiency.
- Decreased Variability: Variability was cut by 50%, stabilizing operations.
- Lowered Back-Order Risk: Back-order risk was reduced by 95%, improving reliability.
- Increased Stock Levels: Stock levels for finished goods rose by 10%, ensuring availability.
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Faced with rapid growth, Tech Innovators Inc. struggled with managing their expanding workforce. Our HR solutions streamlined their recruitment process, improved employee retention, and enhanced overall productivity.
Lisa Kenney
Chairman, Tech Innovators Inc