SCALA | Infrastructure Evaluation

This US Pharmaceutical supplier with a turnover of $60bn set up a new venture in the UK to provide a high quality service to Homecare patients. The objective is to be the best homecare provider, delivering a new level of care and experience which brings both better clinical outcomes for the patient and lower costs for the NHS.

The SCALA team undertook a review of the existing and projected levels of Homecare and NHS deliveries to establish the optimum costs for the Supply Chain, whilst meeting the demanding timeframes for patients. Our recommendations included:

- 'Centre of Gravity' evaluation balancing for inbound & outbound traffic
- To provide the best infrastructure going forward a change in facilities was required
- Opportunities identified to improve Customer Service
- Major opportunities to reduce overall costs per customer delivery
- Improvements in depot sharing, and the addition of a second 'centre of operations' was
seen as a significant opportunity

The review resulted in a change in direction for future depot locations, and substantial cost improvements identified for the future strategy of the business. Specific benefits were:

- An operating improvement of £1.1m
- Expansion of network infrastructure
- A future reduction in delivery cost
- An immediate project need to establish a new depot near London
- Improved service opportunities with a greater focus on Customer Relations Management
- A defined differential cost / service offering for the various parts of the business
- Setting up a second 'centre of operations'