Specialty Pharmaceutical Company
Establishing a Competitive, Independent Operation in a Complex, Highly Regulated Market
This story is for CEOs and PE firms who:
- Need to rapidly improve performance pre- and post-divestiture
- Want to improve competitiveness in challenging market conditions
- Are looking to cut costs by improving operational efficiency
The Challenge
A private equity-backed carve-out of an API (Active Pharmaceutical Ingredient) manufacturer from a multinational pharmaceutical and consumer goods company needed to stand up operations as an independent entity within 14 weeks. Post-carve out, the company faced inefficiencies in procurement, logistics, and operations, lacked standardized processes, and struggled with high costs and low accountability.
Maine Pointe:
- Established procurement processes and supplier engagement strategies
- Transitioned logistics from air to ocean freight to reduce costs
- Installed a demand-driven production schedule and optimized shift patterns
- Created cross-functional teams to develop operator playbooks and reduce cycle times
- Implemented management operating systems to improve productivity and quality
- Delivered leadership and negotiation training to enhance internal capabilities
Lessons Learned for Other CEOs
- Carve-outs can retain favorable contract terms with the right supplier engagement
- Shifting from 7-day to 5-day operations can maintain output and quality
- Even highly regulated industries can explore alternative logistics strategies
- A culture of accountability and cross-functional collaboration drives sustainable gains
The Results
- 14.4% improvement in gross profitability
- 24% reduction in direct spend
- 23% reduction in indirect spend
- 20% reduction in labor costs while maintaining output
- 3.2:1 ROI delivered
- Transitioned from a reactive to a proactive, accountable culture
Consumer Packaged Goods & Retail> Private Equity > Warehousing & Logistics Operations
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Optimizing DC Network to Lower Operational Costs and Improve On-Time Fulfillment
