Transformation sparks financial income for allSurface Transport & Logistics

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For one leading pharmaceutical laboratory, success and double-digit sales growth came with a cost: an overburdened supply chain that threatened to reduce market share.

The effort vastly improved the company’s planning and execution functions, they knew that in order to succeed in this era of technology their accounting systems needed to be much more robust than what they are. They turned to WP consulting to improve their accounting systems.

challenge

The biggest challenge was that Arguzo was not utilizing technology properly. Too much of the work was still being recorded manually, which meant that the numbers took a long time to note down and then to be analyzed. Live data was also not available and decisions can only be made after all the required data and been received. This was holding Arguzo back; they knew they could corner more of the market if they had the ability to be more mobile. The work addressed three critical issues for Pharm Ltd.:

  • Improve sales and operations and production planning:

    The teams focused their efforts on a few of the highest-value S&OP levers in order to review the current planning process, identify gaps in the planning infrastructure and analytically understand demand and supply variability.

  • Determine the right inventory level:

    With hundreds of medications in the market, Pharm Ltd. needed a proper method to predict and manage their inventory. Using a mean absolute percentage analysis (MAPE), the teams defined appropriate levels for raw materials and finished products by mapping actual versus forecasted sales on the most important SKUs.

  • Optimize the supply chain for perfect order planning:

    The diagnostic determined the stressors that affected sales and service levels. The teams focused on resolving issues related to higher-than-normal back-orders and lead times, which stressed the entire supply chain and led to delays in medications reaching consumers.

solution

The solution WP consulting came up with combined cutting edge technology with real world practicality. Everyone knew that the systems had to be updated, the real challenge was updating them without disrupting the whole organization in a negative way. The solution was to introduce proper workload management done through computers, while providing mobile platforms to the stakeholders.

This allowed the workers to be involved in the job instead of feeling like they had been made redundant by technology.

results

Arguzo employees are now more empowered; Arguzo also has the benefit of generating reports instantaneously whenever needed. They can now make decisions on the fly based on the latest real time data.

The effort vastly improved the company’s planning and execution functions, created and implemented a new stock policy that accounted for specific SKUs and key variables, streamlined the order preparation process and reduced distribution transport times.

By the numbers, the effort:

  • Reduced lead time by 43%
  • Decreased variability by 50%
  • Lowered the risk of back-order by 95%
  • Increased stock for finished goods by 10%

Le 14 mars dernier, à l’invitation du professeur Van Son Lai, gestionnaire du Fonds Conrad-Leblanc et co-directeur du LABIFUL, FSA ULaval recevait Mme Mary Hardy, professeure en gestion des risques de l’Université de Waterloo, et M. Phelim Boyle, professeur en finance à la School of Business and Economics de l’Université Wilfrid-Laurier, également à Waterloo, en Ontario. Plus de 80 personnes étaient venus entendre ces deux sommités dans leur domaine. Parmi eux, 25 actuaires, plusieurs gens d’affaires (AMF, Desjardins, Industrielle Alliance, Agri-Marché, KPMG, Deloitte, SSQ, Morneau Shepell, etc.), professeurs et étudiants de FSA ULaval, de l’École d’actuariat et du Département d’économique ont participé aux discussions et partagé leurs réflexions.

  • Fellow de la Society of Actuaries et de l’Institute of Actuaries, et Chartered Enterprise Risk Analyst, Mme Hardy présentait de façon vulgarisée quelques résultats de recherche sur les risques et les avantages de trois modèles hybrides de fonds de retraite, le Cash Balance, le Floor Offset et le Target Benefit. Le but de la présentation était d’évaluer les risques potentiels de chacun et la façon de gérer ces risques afin de réduire les problèmes.
  • La conférence de M. Phelim Boyle portait, quant à elle, sur les modèles d’assurance hypothécaire. Fellow de l’Institute of Actuaries et du Canadian Institute of Actuaries, récipiendaire du 2005 Sungard/IAFE Financial Engineer of the Year Award et de la Centennial Gold Medal de l’International Actuarial Association, M Boyle a abordé l’assurance hypothécaire, la structure de marché, les modèles de contrat, les risques moraux et la gestion des risques, tout en rappelant l’importance d’une gestion prudente des risques et des leçons de la récente crise.

Cette journée a été rendue possible grâce à de nombreux partenaires : le Département de finance, assurance et immobilier, la Chaire d’assurance et de services financiers L’Industrielle-Alliance, la Chaire Groupe Investors en planification financière, la Chaire RBC en innovations financières, l’École de comptabilité, l’École d’actuariat, le LABIFUL et les salles des marchés Carmand-Normand et Jean-Turmel.

Télécharger les présentations

Présentation de Mme Mary Hardy                                                   Présentation de M. Phelim Boyle

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