This private equity client initially called in Maine Pointe to support their stand up of a carve out from a major multinational pharmaceutical and consumer goods company. Working closely with our PE partner, we ensured that the critical functions of the carved-out organization, an API (Active Pharmaceutical Ingredient) manufacturer were in place and capable of running as an independent company within 14 weeks.
Post-carve out, the newly formed company needed to improve operations efficiency and increase competitiveness in a highly-regulated and complex market. They asked Maine Pointe to help identify areas for value creation opportunity within the new, independent company’s procurement, logistics and operations.
The work you've done, not just the results, but the way you've gone about working with our people, is unlike anything I've ever seen."
Working closely with the client, Maine Pointe’s industry and subject matter experts identified several areas for performance improvement and growth across the supply chain:
Procurement: As a result of the carve out, the company didn’t have a set of procurement processes and procedures. Having lost their advantageous position (as part of a large multinational), they needed to quickly establish market identity and leverage within the supplier community. To help achieve this we:
Logistics: The company was shipping all product by air and had not fully explored other modes of transportation. Maine Pointe helped them cut costs by making the transition to ocean freight.
Operations: This was the key area for improvement. Despite declining demand on multiple products, production was still scheduled 365 days, around the clock. There was no clearly defined procedure or daily oversight for processes ranging from 12 to 120 hours and an absence of operational accountability. Maine Pointe helped the company to transition to fewer shifts and less hours, eliminating excess labor and non-value-added work while maintaining quality and output. More specifically we:
As a result, the company has progressed from a culture of low accountability to a dynamic, engaged and accountable culture. Armed with the tools to match demand to resources they now have the capability to make further savings as business conditions change.
Working in close partnership with our client, Maine Pointe’s holistic Total Value Optimization™ approach delivered the following results: