Case Study
UST drives product launches in regulated market, achieves 70% cost reduction in supplement production
Our client faced significant challenges in launching its first food-grade and dietary supplement product, requiring a robust end-to-end supply chain. UST's solution achieved a 70% reduction in cost of goods sold (COGs), ensured compliance with 14 new standard operating procedures (SOPs), and integrated SAP ByDesign for enhanced operational visibility and efficiency.
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OUR CLIENT
Our client is a global company headquartered in Ireland that specializes in developing therapies and technologies to extend human health span and longevity. Their mission is to enhance the quality of life for aging populations worldwide through scientific advancements and cutting-edge healthcare solutions. Positioned at the intersection of biotechnology, regenerative medicine, and AI-driven drug discovery, this organization with $30B in annual sales focuses on innovating treatments for age-related diseases.
THE CHALLENGE
Launching food-grade and dietary supplement products while ensuring compliance
The client needed assistance to develop and implement a comprehensive end-to-end supply chain and processes capable of efficiently bringing food-grade and dietary supplement products to market while meeting stringent regulatory requirements and scrutiny.
The project team faced immense pressure to design a supply chain that could effectively navigate the complexities of sourcing raw materials, managing production, and delivering finished goods. They needed a streamlined process and a technology solution that would meet immediate launch deadlines and facilitate future growth.
THE TRANSFORMATION
Solution: Comprehensive end-to-end supply chain development
To address the client’s ambitious product launch goals, UST delivered a robust end-to-end supply chain solution tailored for their first food-grade and dietary supplement product. Our project team identified and evaluated suppliers for raw materials, logistics, and contract manufacturing organizations essential for production. By carefully selecting high-quality suppliers, we ensured that the manufacturing processes adhered to the highest efficiency and quality standards. Furthermore, we facilitated the technical transfer of novel technology products from R&D to third-party suppliers, ensuring a smooth transition and scaling of production capabilities.
A standout feature of our engagement was developing and implementing a company-specific Quality Management System (QMS). This included comprehensive document management protocols and rigorous supplier audits, which were vital for maintaining product quality and compliance with stringent regulatory standards.
As a result of our efforts, the client can now seamlessly integrate their ERP system with eCommerce platforms, including support for the Amazon channel, enabling efficient order processing and inventory management. Beyond initial implementation, our project team continues to optimize the supply chain, providing ongoing support for new product introductions including development and integration of the supplier network.
THE IMPACT
Our client is now equipped with an agile and efficient supply chain capable of supporting future growth and additional product launches.
- Cost savings: By meticulously evaluating quality and cost before selecting a compound supplier, the project team achieved an impressive 70% reduction in cost of goods sold compared to initial projections.
- Quality assurance and compliance: The implementation of a comprehensive Quality Management System included creating and rolling out 14 Standard Operating Procedures (SOPs). All employees were trained on these SOPs and food safety regulations, ensuring organizational compliance and consistency. Furthermore, seven suppliers were rigorously qualified under the new QMS, strengthening the supply chain's integrity.
- Operational efficiency: The deployment of the fully integrated cloud-based ERP platform, SAP ByDesign, provided visibility and transformed the client's operations with functions such as order to cash, planning, inventory, profit & loss financial reporting, and master data management.
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RESOURCES
https://www.ust.com/en/industries/life-sciences