Case Study
Leading Global Industrial Biotechnology Producer Redesigns Supply Chain, Reducing Total Inventory by 54% and Consolidating 60% of Distribution Centers
$17M
Annualized EBITDA Improvement
Strategic Imperative
To deliver $17M in new profit contributions while consolidating 60% of distribution centers and correcting unacceptable fill-rate performance by implementing state-of-the-art, technology-driven distribution control systems and revolutionizing supply chain work processes
Client Background
- Leading global industrial enzyme manufacturer with ten U.S. and European production facilities and 1,800 employees
- Supply chain scope spanned demand forecasting, production planning, warehousing, inventory management, transportation, and order entry and service
- Revenue tripled in three years through acquisitions, rapidly increasing network scale and integration complexity
- Customer complaints had increased fourfold and continued rising as fill-rate performance remained unacceptable
- A scalable supply chain was critical to converting acquisition-led growth into profit, customer service, and working-capital performance
- Production technology had received priority while supply chain and customer service infrastructure remained underdeveloped
Key Issues & Barriers
- Supply chain functions were fragmented and ineffective, preventing coordinated execution across forecasting, planning, warehousing, distribution, and customer service
- Unreliable sales demand forecasts weakened production planning, inventory decisions, and distribution capacity requirements
- Production planning and scheduling processes lacked sufficient control to align manufacturing output with customer demand
- Distribution lacked clear leadership and direction, limiting accountability for service, cost, inventory, and network performance
- Goals and expectations were unquantifiable, unclear, and disconnected from formal reward systems
- Acquisition-driven cultural misalignment and distribution center proliferation reinforced inconsistent practices, excessive inventories, and uneven service execution
Key Implementation Components
- Redesigned and fully mapped end-to-end supply chain processes spanning demand forecasting, production planning, warehousing, inventory, transportation, and customer service
- Developed and staffed new supply chain organizations to establish clear leadership, ownership, and cross-functional accountability
- Implemented an advanced, technology-enabled distribution control system to improve network visibility, inventory control, and service execution
- Implemented goal alignment and translation processes linking enterprise priorities to measurable supply chain expectations and accountabilities
- Integrated computer systems across supply chain functions to strengthen information flow, coordination, and operating control
- Fully implemented a new enterprise system to standardize global supply chain processes and support sustainable execution
Benefits & Results
$17M
Annualized EBITDA Improvement
60%
Distribution Center Consolidation
54%
Total Inventory Reduction
38%
Distribution Cost Reduction
10%
Supply Chain Labor Cost Reduction