C U S TO M E R C A S E S T U DY

Boosting efficiency andspeed: How a North American
pharmaceutical giant
streamlined its global supplychainIndustry:

Two years ago, one of the world’s leading pharmaceutical and consumer

Pharmaceuticals

healthcare manufacturers looked to enhance its supply chain operations

Geographies:

to better manage its global network. The priority was to find a newWorldwide manufacturing
sites, customers in morethan 185 countries

supply and production planning solution that would reflect a scale ofoperation that spans more than 30 manufacturing sites worldwide, over80,000 employees and global revenues above $50 billion annually. The
proposed solution would also bring the organization agility, resilience

Employees:

and finesse in an industry with stringent regulations, product sensitivity

Over 80,000

and a truly global supply chain.

Revenue:>$40 billion

Wanted: A new, contemporary planning solution
The journey began in 2022, as the company’s supply chain leaders
assessed their current technology portfolio and realized that a newplatform was required. As its supply chain operations quickly expanded
across the globe, it called for an improved supply and production
planning solution.
At that moment, the long-time SAP customer was using a highlycustomized, tailored version of the Advanced Planner and Optimizer(APO) supply chain planning tool, which had been in place for as long as
20 years. The manufacturer was also using SAP’s Integrated Business
Planning (IBP) software for sales and operations planning (S&OP). There
was a realization that neither solution was meeting the needs of today, or
preparing the organization for the needs of the future.

“We got to the point where, particularly on the supply planningside, we felt that SAP IBP for demand planning met our needs[but] we were probably using 40% of its capabilities,” said a senior
supply chain leader. “Given our company’s complexity, we decided
to focus on supply and production planning. To get there, we
needed a new, contemporary solution.”

Cultivating a tech-driven supply chain
Eager to push forward quickly, an RFP was issued to scopeout the challenges it was trying to solve. Here, the company
specifically cited production and network planning, but also
confirmed the need for a detailed, enterprise schedulingsolution. Until recently, the use of Excel spreadsheets stillwasn’t uncommon. The supply chain leadership team saw anopportunity here to transform the operation, with a goal ofbeing able to do scenario planning and simulations which simply
weren’t possible when using disparate point solutions andspreadsheets.
The RFP produced a laundry list of potential solutions. Someof the key “must haves” included a contemporary, cloud-based
solution that would replace its on-premises legacy system. It

We got to thepoint where,
particularlyon the supply
planning side,
we felt that SAP
IBP for demandplanning met ourneeds [but] wewere probably
using 40% of its
capabilities.

was also important to find a solution that would easily integratewith third-party applications to deliver a 360-degree view of thecompany’s global operations.
With over 30 manufacturing sites spread across the world, and packaging facilities serving as many as 195
different markets, this visibility was significant. Further complexity also came from the markets themselves,calling for an upstream supply chain that relies heavily on sensitive, time-critical pharmaceutical products
and ingredients.
Managing these and other intricacies using APO had proved cumbersome, especially given the lack ofconcurrent planning capabilities. “SAP was unresponsive in terms of development and we were kind ofpulling them versus them pushing us to what they had,” said the supply chain leader. “At that point, Kinaxis
came out on top.”
APO had already been earmarked for a sunsetting period in 2027, so looking beyond SAP for a more connected,
agile and suitable supply solution on the market made sense. The company not only appreciated Kinaxis’
proposition, but also the sense of urgency that matched their big transformation ambitions.

As part of the due diligence process, the manufacturer also
used leading industry analyst research and spoke with industry
partners about Kinaxis’ solutions. The supply chain team was
drawn to Kinaxis’ ability to drive big transformational changes. “We
didn’t just want to make small, step changes,” added the leader.
“To achieve our transformational goals, we needed the types ofcapabilities Kinaxis offered and felt they were best positioned tohelp us get there.” And, two years on, those changes are alreadyvisible.

A tech-enabled global powerhouse
The partnership is now in full flow, leveraging Kinaxis’ advancedplanning and scheduling (APS), and concurrent planning solutions.
The integration of these platforms with SAP will coincide withthe company’s upgrade to SAP S/4HANA later this year. Kinaxis’
seamless connection to enterprise resource planning (ERP)systems like SAP will make the transition much easier and ensure
seamless supply chain continuity.
Kinaxis invited more than 350 of the company’s planners into theearly conversations about the software to ensure a successfulrollout of the new technology. This included a review of its
capabilities while helping them to work through any obvious
obstacles that are inherent when replacing software that has beenpart of the organization’s fabric for 20 years.
This early involvement was also important for the relationshipbetween the two companies, breeding familiarity in the way eachparty works, and to help future transitions as well. The ease ofusing the Kinaxis solution made early training sessions moreproductive, effectively removing any barriers to entry and/or
steep learning curves. According to the supply chain team leader,“It’s worked well for us,” he added. “We’ll continue using thatmethodology during the configuration stages.”

The next mission: Managing all demand in a single environment
With its new planning platform in place, the pharmaceutical manufacturer’s associates are alreadycollaborating and performing in ways that weren’t possible using the previous, legacy system. The company’s
internal project team played a key role in implementation and rollout, and the combined power of Kinaxis andGenpact helped ensure a smooth transformation that has already crossed the finish line.
However, there are more races to be run and won, together. Moving forward, the company wants to improve
its approach to data management, to gain more visibility and control over that data—both within its single
instance of SAP and with any third-party applications that are integrated into that primary system.
A decentralized system with 1,000 people managing that data isn’t sustainable. “We want to move to a more
centralized data management organization operating model, and use more automation and self-healing
master data,” said the supply chain leader.
According to the supply chain leader, Kinaxis and Genpact will be on hand to guide this next phase oftransformation, for the benefit of both the company’s internal users, and—ultimately—its vast global
customer base, to reach “an end game that allows us to manage all demand in a single environment. That’s
one of our key tenets.”

To read more stories, visit www.kinaxis.com/customers.
Kinaxis is a global leader in modern supply chain management. Our software is trusted by global brands in every industry to provide the agility and predictability needed tonavigate today’s volatility and disruption.
This publication is accurate as of the date published and may be updated by Kinaxis from time to time at its discretion. Copyright © 2024 Kinaxis Inc. All rights reserved. Kinaxis, the Kinaxis logo
and RapidResponse are registered trademarks of Kinaxis Inc and its affiliates. All other brands and product names are trademarks or registered trademarks of their respective holders, and use ofthem does not imply any affiliation with or endorsement by them. 03.24