AIM optimises transport services for global pharmaceutical client
When a mid-sized biopharmaceutical company was seeking to align its carrier network in the wake of a major acquisition, it called on AIM for help. The consultancy helped identify optimisation opportunities and implement a plan which yielded cost savings and a more resilient transport network.
As difficult as actually acquiring a company can be, what comes next can be just as challenging. In the integration period, along with binding teams across the organisation, supply chains and carrier networks need to be aligned – and in a globalised economy, rife with disruption, that can be a huge challenge.
When a mid-sized biopharmaceutical company recently completed a strategic acquisition and major product portfolio expansion, the firm realised their existing carrier network was no longer optimised for their evolving needs. Quality and compliance standards had grown more rigorous, their geographical footprint had extended into new markets, and transport costs were rising without commensurate service improvements.
Adapting the procurement function would be easier said than done, too. Having gone more than six years without a comprehensive carrier review – beyond the industry best practice of calibrating transportation spend every three-to-five years – the company sought a consulting partner with practical biopharma logistics expertise to deliver meaningful improvements in both service quality and cost efficiency. And for that, it turned to AIM for support.
Reflecting on the project, Ronald van Zitteren explained, “AIM’s team drew on their direct biopharma logistics experience to identify both apparent optimization opportunities and underlying inefficiencies. This dual focus enabled simultaneous service enhancement, adoption of resilience strategies and cost reduction.”
Key elements
Outlining the firm’s process, the AIM principal noted that the first port of call was a process of strategic project scoping, followed by a comprehensive baseline assessment. The firm analysed historical performance, current operational challenges, and one-to-three year forward requirements to ensure the solution would meet both immediate and future needs. Then, together with the client, the consultants established clear service and cost benchmarks.
“Then, we delivered a structured documentation package,” he went on. “We developed a thorough RFP documentation package incorporating existing and projected transactional data, product specifications, geographic requirements, key account profiles, and technical and service parameters. Standardized quotation templates ensured consistent, comparable, and timely proposals from all candidates.”
What then followed was an overhaul of candidate selection and RFI/RFP/RFQ processes. Leveraging the firm’s “extensive experience and use case references”, AIM guided the client through candidate longlist and shortlist development, encouraging a mixture of diverse and established carriers – including “regional specialists, market newcomers and niche providers” – to broaden available solutions.
AIM worked to implement a proven project management framework, to oversee this, fuelled by data-driven assumptions and process-based evaluation. Implementing clear governance structures and reporting mechanisms, carrier candidates were then assessed on “responsiveness, engagement quality, strategic thinking, process adherence, proposal completeness, interpersonal dynamics, sustainability approach, operational flexibility, and relevance of bid content.”
Van Zitteren added, “We managed the process from the User Requirements Specification (URS) through to the contract award, providing constructive feedback to unsuccessful candidates to maintain positive industry relationships.
Impact
According to AIM, the results have already made an impact. The client has established an optimised carrier network, securing greater resilience for the mid- and long term, while achieving “double-digit cost reduction” thanks to this, and a smarter lane allocation process.
At the same time, the biopharma firm has secured a number of operational improvements. By identifying opportunities to harmonise and govern transport management across internal sites and articulated the importance of maintaining a detailed lane repository and granular shipment data – while also finding opportunities to convert at least 5% of lanes from air to ocean freight, reducing carbon footprint while projecting additional savings.
Van Zitteren concluded, “The client highlighted that the structured evaluation process itself provided immediate value. Recognising the significant improvements delivered across both service and cost performance, the client extended the engagement, asking AIM to drive the implementation process and a full operating model revamp.”
