Case Study
How UST enabled a biopharmaceutical leader to save $1.5 million annually
Rapid global employee growth for a biopharmaceutical CDMO led to significant inefficiencies and lost inventory due to fragmented IT processes. UST’s Biologics SCOR Model Assessment streamlined supply chain and financial operations, generating over $1.5 million in annual savings while enhancing mobility and decision-making through digital transformation initiatives.
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OUR CLIENT
Our client, a global leader in scientific services, is dedicated to advancing life sciences, healthcare, and biotechnology through innovative solutions. From advanced analytical instruments and laboratory equipment to specialty diagnostics and life sciences tools, they enable customers to accelerate research, improve healthcare, and enhance productivity.
THE CHALLENGE
Overcoming a fragmented IT improvement process that hindered growth
A biopharmaceutical Contract Development and Manufacturing Organization (CDMO) site experienced rapid growth, with employees expanding globally within a few years. This surge in size strained the site’s ability to manage increased demand, complexity, and operational efficiency. Critical functions like procurement, supply chain, warehousing, and finance faced numerous identified and unresolved issues, leading to millions in lost inventory and an overextended workforce. The company’s dependence on manual, offline processes—tasks typically managed by ERP systems—caused delays, errors, and miscommunication, resulting in flawed business decisions that jeopardized their growth.
Compounding these challenges was a fragmented IT improvement process. Stakeholders submitted IT requests individually, which were prioritized based on relationships and urgency, not business value. This disorganized approach hindered the implementation of cohesive technology solutions, further exacerbating the company’s operational inefficiencies and highlighting the need for a more strategic, integrated solution to address both technological and process-related challenges.
THE TRANSFORMATION
Leveraging the SCOR model for sustainable growth
UST delivered a Biologics SCOR (Supply Chain Operations Reference) model assessment and digital transformation solution to address the client's operational inefficiencies. This comprehensive service focuses on transforming the client's supply chain and financial processes by leveraging UST's expertise and industry-leading frameworks.
UST systematically cataloged and scored inefficiencies, implementing solutions based on urgency and business impact. Some solutions were executed independently by UST, while others were implemented in collaboration with client resources. This process resulted in a strategic review that covered all business facets, including organizational roles, data management, and system capabilities, ultimately creating a multi-year roadmap for improvement.
The success of UST’s approach was in its domain-lead application of the SCOR model, which provided a detailed analysis of the client’s existing processes compared to industry regulatory standards. By overlaying these processes onto the SCOR model, UST identified inefficiencies and best practices, highlighting areas for improvement. Additionally, UST mapped key SAP functionalities to these gaps, uncovering 40 distinct opportunities for operational enhancement.
As a result of UST's engagement, the company can now prioritize initiatives and align its investments with high-impact business outcomes. This strategic alignment has empowered the company to achieve sustainable growth, improved operational performance, and significant process efficiencies, which were previously unattainable.
THE IMPACT
The impact of process optimization: Achieving major cost savings and enhanced efficiency
- $1.5 million annual savings—UST's supply chain process optimization led to identifying and implementing over 50 process improvements across procurement, supply chain, warehousing, and finance operations, delivering over $1.5 million in annual savings.
- Enhanced mobility and efficiency—Implementing Fiori handheld transactions on iPads for warehouse operations streamlined processes and improved operational mobility, significantly reducing delays and increasing on-site efficiency.
- Real-time financial insights—The deployment of S/4 HANA Simple Finance streamlined financial processes, providing real-time insights and improving the company's ability to make accurate, data-driven decisions that support long-term growth.
Talk with a UST Life Sciences expert.
RESOURCES
https://www.ust.com/en/industries/life-sciences
https://www.ust.com/en/insights/ptc-therapeutics-increased-efficiency-and-reduced-risk.pdf