A need for transformation in a time of unprecedented change

Reduced spending power of healthcare providers, emergence of the patent cliff and the limited opportunity for finding and gaining regulatory approval for new blockbusters are forcing a complete reappraisal of the pharmaceutical business model.

Shrinking margins and a need for revenue growth are causing companies to diversify into different markets and introduce new product portfolios, with some success. However, there is still considerable scope to improve productivity in R&D, commercial operations and supply chain management if the sector is to match the levels of efficiency seen in other industries.

Those who are successful will launch more products more quickly and at a significantly lower cost, by streamlining their operating model.

A new paradigm

This future model will require the breaking down of silos and the establishment of an integrated end to end supply chain – if improved productivity and the greater visibility of working capital are to be achieved.

This will be a significant break from the past which will require high levels of employee engagement, if these substantial changes are to be embraced and sustained.

What is different about the Unipart approach?

Our approach engages people at all levels, unlocking their ideas and giving them the capability to create new ways of working and the confidence and methods to solve their own problems.

It breaks down silos and creates a new way of working.

Supported by our wider expertise in logistics and manufacturing our methods have helped develop successful global supply chains for some of the world’s leading companies. The same techniques have now been applied successfully to the pharmaceutical industry to improve operating margins by reducing operating costs and working capital.

Results we have delivered

  • Materials movement improvement reduced costs by £0.6m and lead time reduced by x10
  • Warehouse capacity improved by 40% reducing inventory and avoiding operational costs
  • Warehouse picking productivity up 120% and costs reduced by £0.55m
  • Emerging market plant capacity utilisation improved to avoid £3m capital spend
  • Clinical trials packaging and distribution order throughput improved by 60%

Read more about the benefits we have achieved for pharmaceutical organisations