High regulation and statutory compliance in your business is constant whether you are in the API or Formulations business. Multi-level bill of materials, new product introductions, multi packing types, Joint products, and the sheer volume of SKUs and intermediaries make the manufacturing process highly complex. Maintaining adequate stock levels across the entire supply chain to cover for projected sales in an MTS scenario and long production cycles with Quality Check and Audits are common in the MTO scenario. Managing this complexity across the entire organization is an arduous task and requires deep knowledge and understanding of the various business processes.
Planning for Pharmaceuticals
Finance teams are always struggling with BOM Costing with different ingredients, recovered solvents, outsourcing contracts Vs insourcing manufacturing. Supply Chain is constantly working with R&D to find replace better and cheaper BOM substitutes. R&D has a long-term view of new product introductions that make planning for regulatory filings, new market penetration and pricing dynamics complex. Sales forecasting can be difficult when you have limited visibility about the secondary and tertiary sales. Allocation of Cost Centre expenses across product lines considers various factors like work center machine and labour hours usage for each production recipe and order. Differently skilled people across the labor supply chain at the production facility, corporate and shared services is also an important element of the overall planning process.
Planning and collaborating across multiple teams like Supply Chain, Manufacturing, Sales, Operations, Finance and Logistics need to strike a balance to ensure efficient movement of goods across the supply chain right from procurement to delivery to end consumer. And all of this needs to be in a profitable way. This requires sales & operations planning (S&OP), as well as demand, and supply-chain planning.
Deflytics helped a large Active Ingredients and Lifesciences company implement a FP&A model [Budget, Actuals and MIS/Reporting] which improved their planning cycle by 20-25%. The scope included Bill of Material Costing, Transfer Pricing, Stock valuation, Subsidiary P&L, Product Group P&L/BS/CF. In addition we also implemented Workforce planning to manage its large employee base.
- Revenue & Expense Planning
- Fixed Assets & Capex Planning
- Bill of Material Costing
- Indirect Cost Allocations
- Working Capital Management Planning
- Supply Planning
- Inventory Planning
- Long-Term Capacity Planning
- Workforce Planning
- R&D Planning