Case Study
70% reduction in cost of goods sold and seamless product launch delivered through end-to-end biotech supply chain transformation
OUR CLIENT
This global biotech organization develops innovative therapeutics designed to slow or reverse age-related declines. By targeting the biological pathways of aging, the company’s treatments aim to promote a longer, healthier lifespan and improve quality of life. Leveraging AI-enabled drug discovery platforms and adaptive clinical trials, its experienced research and development (R&D) team is advancing multiple medicines toward Phase I and II trials.
THE CHALLENGE
Designing a compliant, scalable supply chain to enable pharmaceutical commercialization
The company was entering new-product commercialization without the necessary infrastructure to take the offering to market. It faced multiple challenges, such as:
- No suppliers, distributors, or ERP system to manage planning, procurement, and order fulfillment
- Lack of a quality management system (QMS) to ensure compliance and consistent product safety
- Potential supply chain bottlenecks without integrated processes between logistics and partners
- No digital tools for financial visibility to facilitate data-driven decision-making across the business
The company needed a trusted partner to design and deploy end-to-end supply chain optimizations, powered by SAP technologies, to ensure launch readiness, operational efficiency, scalability, and long-term growth.
THE TRANSFORMATION
End-to-end supply chain processes built on SAP
UST designed and implemented a fully integrated business infrastructure, including organization design, business processes, regulatory structure, operating model, and system support (SAP, e-commerce, QMS, etc.). In particular, the SAP-based supply chain and financial ecosystem connected all aspects of the business from planning and suppliers to manufacturing, logistics, and financials. The transformation included:
- Supplier network and manufacturing set up: We identified, evaluated, and recommended raw materials, logistics, and contract development and manufacturing organization (CDMO) partners to ensure quality, efficiency, and scalability.
- Technology transfer: This enabled the handoff of novel formulations from R&D to third-party manufacturers, ensuring production accuracy and compliance.
- QMS deployment: We developed and implemented a company-specific system with 14 standard operating procedures (SOPs), ensuring consistent product safety and regulatory adherence.
- SAP implementation: We designed, tested, and deployed SAP ByDesign, a cloud-based ERP solution to manage procurement, order-to-cash, planning, inventory, financial reporting, and master data management.
- Ecommerce and logistics integrations: By linking ecommerce and Amazon sales channels with SAP, the company gained real-time order processing and supply chain visibility.
The resulting business structure that UST built established a scalable model for future product launches, combining process automation, regulatory governance, and operational agility to accelerate innovation.
THE IMPACT
On-time product launch and measurable cost reductions
The company successfully launched its first product on schedule, supported by a robust and compliant supply chain, achieving these business benefits:
- 70% reduction in cost of goods sold (COGS): By selecting efficient compound suppliers and optimizing formulations, UST improved profitability and long-term financial sustainability.
- Standardized quality management: The QMS and SOPs strengthened process consistency and ensured safety, quality, and regulatory compliance across the supply chain.
- End-to-end visibility and operational efficiency: The SAP supply chain solution provided real-time visibility into operations, enhancing forecasting, planning, and cost control while enabling data-driven decision-making.
- Sustainable scalability: With the SAP platform in place, the client can efficiently scale manufacturing, improve supplier collaboration, and accelerate future product launches across markets.
Do you want to ensure compliant, cost-efficient product launches? Learn more about UST’s Life Science management consulting and SAP practices.