TAKEDA PHARMA SIMPLIFYING DISTRIBUTION, SAVING COSTS With 38 local distribution centres and 16 different logistic partners with 21 different contracts, Takeda Pharma needed to reduce the complexity of their distribution set-up. We helped to make their supply chain more transparent, aligned, controllable and flexible. THE CHALLENGE Takeda Pharma is a leading global pharmaceutical company with market presence in more than 70 countries worldwide. They have a strong portfolio of prescription and non-prescription medicine for therapeutic areas such as metabolic diseases, gastroenterology, oncology, cardiovascular health, CNS diseases, inflammatory and immune disorders, respiratory diseases and pain management. In 2012, the Danish pharmaceutical company Nycomed was taken over by Takeda, and, as a consequence, the European operation was integrated into one unified organisation. With 220 million packs distributed per year and more than EUR 30M in distribution costs, it was worth looking into how a simplified supply chain set-up could save both resources and money. THE SOLUTION We helped define which steps to take in order to transform Takeda’s distribution, and we were subsequently in charge of the project management to secure a fast and smooth implementation. Takeda needed more transparency in their distribution performance and better control of costs, so, as a first step of the change management process; we worked to create a stronger performance management set-up. Once the new performance management was in place, we planned and prepared a transformation roadmap in close collaboration and alignment with country management and HQ functions. The roadmap included processes on how to restructure the distribution footprint and flow. The number of logistics partners had to be significantly reduced, since complexity and cost were a direct consequence of too many partners and agreements. To avoid a drawn-out and painful process of change, once the plan was laid out, the key success criteria for project management were speed and momentum. Takeda’s new distribution set-up was fully implemented in the course of one year. SECTOR Pharma EXPERTISE • Supply chain and sourcing excellence • Business transparency • Strategy and M&A • Leadership and transformational change
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