Starting situation – changing market structures put pressure on profits
Our customer has been one of the leading pharmaceutical companies in its segment for over 80 years. For generations, it has fostered a trusting and productive partnership with its customers. The industry continues to be subject to laws and regulations, thus creating pressure on the company’s margins and those of its customers. As competition increases, streamlined cost structures become more and more important. From a profit perspective, sales, marketing, and purchasing departments face ever greater demands in terms of performance and efficiency: customer relationships are being increasingly put to the test, from both sides.
Project approach – finding the right balance between boosting earnings and reducing costs
New approaches to sales and price management serve to strengthen the company’s relationship with its customers in the long term. In conjunction with the introduction of a new, customer-centered supply chain management, the company has now succeeded in restoring the partner-like relationship it originally enjoyed with its customers. And an overhaul of the supplier relationship management is also yielding dividends. Organizational changes, new support standards, and individual training in negotiation skills are quick to deliver a positive impact. The structures that have evolved over time are being reassessed, under the criterion of them having a high level of social compatibility and taking the corporate culture into account. The analysis leads to the necessary savings in material and labor costs.
Finding – early intervention protects against harsh cuts
Taking action at an early stage, while at the same time finding the delicate balance between boosting profits and reducing costs, protects the company from more drastic cuts and harsher restructuring. All the parties concerned – employees, social partners, and management – are working together to achieve a sustainable result. Besides the measures implemented, the most important factors for success were effective change management and proactive, transparent communication. Our team accompanied and guided the project from start to finish, thereby helping to increase the company’s value.
- Success rate for sales and purchasing increased by 10 percent
- Socially responsible cost savings of 25 percent