Project

Global Management: Establishing Spare Parts Management Program Across 35 Production Sites Resulting in Annual Savings of >USD 50m

Situation

Following significant improvement to their spend transparency, a global pharmaceutical company identified sustainable acceleration potential to indirect spend savings for the coming 3-4 years
The executive team set the ambition to achieve savings of USD 100m+ on a sustainable basis with much to come by increasing the maturity of their spare parts management

Rolled out new processes, tools and training for handling of spare parts in over 35 sites globally including structural changes across global, regional and local
Critical to success was per site understanding of gaps in capability, capacity and site head support fostering exchange of best practices and cross site trainings
Led with a client-ownership approach to enhance buy-in and gradual hand-over to the business of the project to fully sustain and embed changes

Developed, implemented and rolled out a comprehensive spare parts management program over 36 months
Implemented structural changes in processes and tools and made change sustainable through capability building and actively creating buy-in
New way of workings between manufacturing, engineering, procurement and finance on spare part management of suppliers and inventory resulted in >USD 50m