Client: A nucleic acid labeling company, Size: >$5 billion in revenue, Area of engagement: Supply chain management
Overview of the Nucleic Acid Labeling Market
Nucleic acid labeling techniques have a wide range of applications in life sciences and biotech industries and are mainly used to identify proteins, DNA, and RNA. Currently, multiple labels are available in the market for specific applications. A proper labeling technique is the key to identify specific molecules. However, amid such trends, offering better products and services while being cost-effective and increased focus on establishing systems for ensuring quality and reducing risk becomes a major concern for nucleic acid labeling companies.
“To overcome such challenges, nucleic acid labeling companies must understand the supply chain octopus.”
The astonishing number of incidents that have rocked the business world, such as data breaches, supply chain disruptions, and fraud have often been linked to poor third-party risk management. Organizations are continually faced with challenges in managing a vast network of suppliers, including conducting due-diligence assessments, monitoring supplier performance and stability, and making sure that risks to the organization’s sustainability are kept in check. Additionally, organizations need to ensure that their suppliers are compliant with regulations and standards, as well as corporate guidelines.
The Business Challenge and Journey
Client background: An industry leader in the development and commercialization of nucleic acid labeling with more than 1500 employees in 18 different countries around the world.
- Client issue: The client’s order-to-cash (O2C) process for their supply chain was posing challenges due to their decentralized business units, global reach, cash flow challenges, and inconsistent O2C processes. In addition, they were experiencing high levels of customer dissatisfaction due to non-availability of critical products. Supply chain costs were also increasing due to duplication of effort by various teams, frequent delays in supplying spare parts, higher logistic charges, and expediting fees.
- Client journey: The client integrated the inventory management systems of various business units to provide visibility regarding the availability of labeling materials at all locations. They also collected and analyzed historical data, monitored inventory, analyzed manufacturing and procurement lead times to gain a deeper understanding of the usage pattern and the proper classification of the inventory.
Research methodology: The supply chain management specialists at SpendEdge conducted a comprehensive research and carried out discussions with prominent stakeholders in the biotech industry space to help the client transform their order-to-cash process.
Key questions answered in this supply chain management engagement
The client developed an implementation plan, which reduced their global inventory by over 20%. This helped them increase productivity by over 35%.