IMG was commissioned by a major US pharmaceutical client to examine certain international supply chains from the point of manufacture of bulk materials to delivery to the end user to determine and rectify losses involving a well-known product that were in excess of $1 million per month. IMG was also asked to review an overseas manufacturing plant with a view to preventing cross-contamination and theft of ﬁnished product.
The study resulted in numerous improvement options, one of which was that interrelated, worldwide personnel did not have a clear perception of supply chain activities and its vulnerabilities. When corrective procedures were implemented further losses were avoided.
Likewise, recommendations were made to reduce the likelihood of cross-contamination and theft of valuable product. These embraced technical and security process improvements to product movement, storage and packaging areas as well as site security enhancements.
A global high-technology company requested IMG’s assistance after they had suffered major losses of product in the United States and a number of Latin American countries. Many of the losses were simple disappearances and inventory shortages while others resulted from hijackings, burglaries, robberies, and pilferage in US ports and South American destinations.
- IMG helped the client to develop a clear understanding of its logistics operations and implemented practical, system-wide procedural enhancements to manage and reduce its losses. Starting from an analysis of the various supply chains, IMG traced the movement of product through warehouses, distribution centers, ports and airports, customs checkpoints, etc., to end-user delivery, and identiﬁed existing and foreseeable vulnerabilities.
- IMG examined the transportation lanes used to move the product from the United States to Mexico, Venezuela, Brazil, Argentina and Chile, and reviewed the contractual relationship between the client and its network of logistics providers who had access to the product.
Our Practical Solutions
IMG’s efforts provided the client with a clear understanding of its logistics processes and a blueprint for continuous improvement. Our solutions were systematic and practical. The resulting recommendations addressed weaknesses across the full span of the client’s operations and provided speciﬁc best practice solutions that optimized business operation, and supporting systems, and offset future risk by contractual indemnity. IMG inaugurated a continuous business improvement program using self-audit components and subsequent mechanisms to monitor progress and apportion risk.