SIOP uplift at an ortho device manufacturer ($42M savings)
- Location
- Massachusetts, USA
- Year
- 2016
- Engagement
- Profitability Improvement: SIOP
A manufacturer of orthopedic medical devices globally. Demand planning and inventory practices were not mature, resulting in significant waste and low fill rate. Client required rapid process improvements to prepare for acquisition by top 10 medical devices manufacturer.
Our team developed statistical models for preliminary demand forecasts for earlier lock-in. We revised accountabilities and timelines, supported by proper S&OP monthly meeting cycle. We reduced inventory levels through safety stock target, reduced one-time purchases, improved management of expirations and scrap.
Typical S&OP process framework implemented across the engagement
Measurable impact
$10.2M
USD $10.2m annualized recurring savings from reduced waste
Medical Devices
Measurable impact
$31.9M
USD $31.9m one-time savings from inventory reduction
Medical Devices
Case snapshot
Both ongoing cost efficiencies and a substantial immediate financial benefit
Medical Devices