Case Study
Operational Modelling: Planning the supply chain for future growth
Helped a multinational pharmaceutical and dermocosmetics company build a five-year operating model, identifying a 5% cost-to-serve reduction with under three-month payback in a conservative scenario.
Industry: Health / Cosmetics & Beauty
Client
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Global pharmaceutical and dermocosmetics company with over 70 years.
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The company operates through 44 subsidiaries and distributes its products to 120 countries.
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Recently, the group reached $2.7b euros in revenue, 69% of which from its international businesses.
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Challenges
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The company faced operational challenges related to the complexity of its multi-channel demand profile, which includes national accounts, digital sales, and representatives.
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There was limited visibility into contract structures, cost drivers, and long-term scalability of storage, labor, and transportation capacities.
Our Approach
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Analyzed demand by channel and geography, evaluated existing infrastructure, and identified quick wins for immediate improvement.
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Built a Logistics Cost Map and assessed 3PL contract terms, tariffs, and logistics modalities to improve cost visibility.
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Developed a five-year forward-looking operational model including sales projections, capacity sizing, and a longlist of potential logistics partners.
Results
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Delivered a comprehensive diagnostic of the client’s U.S. supply chain operations and cost structure.
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Provided a forward-looking operating model aligned with growth projections and efficiency objectives, and equipped the client with clear recommendations to support future infrastructure, labor, and partner selection decisions.
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Quantified business case with payback below 3 months and a ~5% reduction in total cost-to-serve under a conservative scenario.
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Defined a roadmap to replace the current 3PL and renegotiate contract terms to capture the identified savings.