Case Study
UST helped a biopharmaceutical CDMO optimize supply chain operations with 50+ process improvements and save $1.5M+ annually
OUR CLIENT
This US-based biopharmaceutical CDMO supports dozens of global life sciences companies with specialized production and supply chain services. The company employs approximately 2,000 people and generates several billion dollars in annual revenue.
THE CHALLENGE
Rapid expansion outpaced supply chain readiness
Rapid headcount growth from 200 to 1,500 employees and production expansion outpaced the organization’s operational maturity. Core supply chain processes were not designed to handle the scale, velocity, and complexity required to support new clients and programs. Key challenges included:
- Fragmented procurement, warehousing, and inventory processes that created inefficiencies and execution issues
- Haphazard inventory management processes resulted in millions of dollars in expired, partially used, or idle inventory
- Unnecessary inventory reorders and excess stock because materials were assigned to individual client programs versus a more cohesive materials management approach
- Reactive issue resolution monopolized the time of highly skilled employees instead of enabling them to focus on strategic, value-driven work
Without intervention, these issues threatened to increase costs, dampen employee morale, and hinder scalability.
THE TRANSFORMATION
Using process improvement consulting to uncover and resolve inventory management challenges
UST embedded a dedicated team of process optimization consultants with the company’s procurement, supply chain, warehousing, and finance teams to uncover the root cause of the inefficiencies and recommend resolutions. UST delivered:
- A structured assessment that cataloged and scored issues based on urgency and impact
- Targeted solutions that addressed issues, improved scalability, and reduced costs, especially with inventory loss reduction and warehouse process improvements
- Implementation support resolved challenges in collaboration with departmental teams
The life sciences company can now manage inventory and procurement with greater discipline and scalability, supporting client onboarding and offboarding without excess waste, storage strain, or operational disruption.
THE IMPACT
Driving $1.5+ million in savings with more than 50 targeted process improvements
The engagement delivered meaningful financial, operational, and organizational benefits. Key results included:
- 50+ process improvements across procurement, supply chain, warehousing, materials management, and finance operations
- $1.5+ million in annual savings by decreasing inventory waste and improving operational efficiencies
- Reliable supply continuity resulting in fewer production delays and ensuring consistent, timely deliveries of biopharmaceutical products
- Increased productivity enabling teams to focus on strategic initiatives rather than reactive troubleshooting
- A more scalable, efficient supply chain helping to position the company for sustainable, long-term growth
Does your company need help identifying and resolving operational issues? Find out how UST can help.
RESOURCES
https://www.ust.com/en/insights/what-does-it-mean-to-be-an-agile-business
https://www.ust.com/en/insights/what-is-rpa-and-why-should-every-business-care