A pharmaceutical company had a profitable product line coming off patent and needed to make up for the coming loss of revenue. While new products were coming online slowly, additional changes were needed to meet the challenge of maintaining or growing EBITDA contributions. It was determined that cost saving and inventory reduction opportunities needed to be identified and pursued.
Flow Consulting prepared extensively for and facilitated a comprehensive Baseline that brought a team of 14 people together for one week to develop plans to dramatically reduce inventory while also identifying process improvements that would result in cost savings.
More than $2 million in savings and more than $2 million in inventory reductions were identified and projects to achieve the benefits were planned. An overall road map for implementation of all projects within 6 months was developed. Leadership agreed to all aspects of the plans on the last day of the Baseline and improvements were coordinated by members of the team and other resources. All targeted benefits were achieved within 9 months of initiating the original Baseline project.