Our client eliminated redundancies and drove down costs by implementing a shared services model for its US Operations groups.
As part of the effort to maintain market positioning by driving down costs, a global pharmaceutical company’s internal consulting organization was tasked with gaining better insight into the roles and responsibilities of the company’s US Pharmaceuticals (USP) Operations groups. The client engaged Satori to assist in identifying work duplication and redundancies, efficiency and effectiveness opportunities, and potential shared services opportunities. Specifically, operating costs were to be reduced by 10%-20% through a novel, more efficient, organizational model. The solution had to meet quality service requirements while identifying activities and services within each USP Operations group to be consolidated, eliminated or improved.
The Satori Solution
Our analysis spanned multiple groups, including Sales, Marketing, Clinical, RMRS Operations, and L&D. These Operations groups, comprised of several hundred individuals, supported the day-to-day business functions that enabled the continuous growth of the company’s market share. We identified several shortcomings of USP Operations’ organizational model, including fragmented decision-making, redundant services, and lack of standardization. We worked with approximately 20 Operations’ clients to identify and validate cost reduction opportunities, then conceptualized, designed, and presented alternative organizational models. We supported the client in understanding key decision-making criteria for selecting a shared service model, such as cost, standardization, and accountability, as well as the implications of different models on the organization.
Our Shared Services Findings and Recommendations presentation identified activities within each US Operations group that could be consolidated, eliminated, or improved. The client ultimately selected a new shared services model that allowed for $27M in savings opportunities.