Case Study

Product complexity reduction delivers savings

This global pharmaceutical and medication delivery company asked us to help reduce complexity and increase shareholder returns. Bain reduced the number of products by about 45 percent and implemented organizational improvements that delivered about 15 percent annual savings on operating income.

  • min read

At a Glance

  • 15% annual savings on operating income
  • 45% overall reduction in SKUs

The Story

The Situation

  • Global specialty pharmaceutical and medication delivery company with large US based footprint
  • Specialty injectable pharmaceuticals and medication management systems are primary growth drivers
  • Client is currently 3rd quartile share price performer
  • Management has top quartile total shareholder returns aspirations, and engaged Bain to do performance improvement and transformation effort

Our Approach

Significantly reduce product line complexity:

Our Recommendations

Adhere to five principles to prevent complexity from re-entering the system:

The Results

Margin improvement by reducing number of products:

 

* We take our clients' confidentiality seriously. While we've changed their names, the results are real.

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