Maximising Value: How Trace Supply Chain Consultants Aid Private Equity Firms from Acquisition to Exit

Insights >
Maximising Value: How Trace Supply Chain Consultants Aid Private Equity Firms from Acquisition to Exit
Back to all
July 27, 2024

Maximising Value: How Trace Supply Chain Consultants Aid Private Equity Firms from Acquisition to Exit

Private equity firms are continually on the hunt for opportunities to acquire, transform, and exit businesses with maximised returns. A crucial aspect of this process involves optimising supply chain operations, which can be a significant driver of value creation. Trace Supply Chain Consultants are experts in this field, offering tailored solutions that enhance operational efficiency and reduce costs, thus improving the overall investment proposition.

This article delves into the various ways in which Trace Supply Chain Consultants can support private equity firms throughout the entire life cycle of an acquisition, from due diligence to exit.

Acquisition: Comprehensive Supply Chain and Inventory Due Diligence

The acquisition phase is critical for private equity firms. During this phase, thorough due diligence is necessary to understand the target company’s strengths, weaknesses, and potential areas for improvement. Trace Supply Chain Consultants bring their expertise to the table by conducting comprehensive supply chain and inventory due diligence.

Supply Chain Due Diligence

Supply chain due diligence involves a detailed analysis of the target company’s supply chain processes, identifying inefficiencies, risks, and opportunities. Trace Consultants assess key areas such as supplier performance, logistics, warehousing, and distribution networks. By evaluating these components, they provide private equity firms with a clear picture of the supply chain’s health and potential risks, enabling informed decision-making.

Inventory Due Diligence

Inventory due diligence is another critical aspect that Trace Consultants focus on. They analyse inventory levels, turnover rates, and demand forecasting accuracy. This analysis helps private equity firms understand the efficiency of the target company’s inventory management and identify opportunities for optimisation. Accurate inventory assessments can reveal potential cost savings and highlight areas for improvement.

Transformation: Rationalisation of Suppliers, Infrastructure, and Assets

Once the acquisition is complete, the transformation phase begins. This phase aims to streamline operations, reduce costs, and enhance overall performance. Trace Supply Chain Consultants play a pivotal role in this transformation by focusing on rationalising suppliers, infrastructure, and assets.

Supplier Rationalisation

Supplier rationalisation involves consolidating the supplier base to achieve better terms, reduce costs, and improve supply chain efficiency. Trace Consultants work closely with the target company to identify redundant or underperforming suppliers. By negotiating better contracts and establishing strategic partnerships, they help private equity firms achieve significant cost savings while maintaining or improving service quality.

Infrastructure and Asset Rationalisation

Optimising infrastructure and assets is another key area where Trace Consultants add value. They assess the target company’s facilities, equipment, and technology to identify underutilised or obsolete assets. By rationalising these assets, Trace Consultants help streamline operations, reduce maintenance costs, and free up capital for reinvestment. This process ensures that the target company operates with optimal efficiency, contributing to improved profitability.

Improving Forecasting and Inventory Optimisation

Effective forecasting and inventory management are crucial for maintaining a balanced supply chain. During the transformation phase, Trace Supply Chain Consultants focus on enhancing these aspects to ensure that the target company operates efficiently and meets customer demands.

Improving Forecasting Accuracy

Accurate forecasting is essential for aligning supply with demand, reducing excess inventory, and minimising stockouts. Trace Consultants leverage advanced forecasting techniques and tools to improve the target company’s demand planning. By analysing historical data, market trends, and customer behaviour, they develop more accurate forecasts that enable better decision-making and planning.

Inventory Optimisation

Inventory optimisation involves balancing inventory levels to meet customer demand while minimising carrying costs. Trace Consultants use sophisticated inventory optimisation models to determine the optimal inventory levels for different products. By implementing these models, they help private equity firms reduce excess inventory, improve cash flow, and enhance overall supply chain efficiency.

Procurement and Supply Planning

Efficient procurement and supply planning are critical for ensuring a smooth and cost-effective supply chain. Trace Supply Chain Consultants offer expertise in these areas, helping private equity firms enhance procurement processes and optimise supply planning.

Enhancing Procurement Processes

Trace Consultants work closely with the target company’s procurement team to streamline processes and achieve cost savings. They assess current procurement practices, identify inefficiencies, and implement best practices. This includes leveraging technology for automated procurement, negotiating better contracts, and establishing strategic supplier relationships. By enhancing procurement processes, Trace Consultants help private equity firms achieve better pricing, improved supplier performance, and reduced risks.

Optimising Supply Planning

Supply planning involves coordinating the production and distribution of goods to meet customer demand efficiently. Trace Consultants develop robust supply planning strategies that align with the target company’s business goals. They analyse demand patterns, production capacities, and lead times to create optimal supply plans. These plans ensure that the right products are available at the right time, minimising stockouts and excess inventory.

Leveraging Procurement Spend Analytics

A powerful method to achieve rapid cost reduction in procurement is through the use of spend analytics, leveraging benchmarks and artificial intelligence (AI). Trace Consultants employ advanced spend analytics tools that provide deep insights into procurement patterns and expenditures. By benchmarking these against industry standards, they can identify discrepancies and opportunities for cost reduction. AI further enhances this process by uncovering hidden inefficiencies and predicting future spending trends, enabling more strategic decision-making. This data-driven approach helps private equity firms quickly realise significant savings, improve negotiation leverage, and optimise their procurement strategies for sustained financial benefits.

Leveraging Better Technology

In today’s digital age, leveraging advanced technology is essential for maintaining a competitive edge. Trace Supply Chain Consultants help private equity firms harness the power of technology to enhance supply chain operations.

Implementing Advanced Planning Systems

Advanced planning systems (APS) are powerful tools that enhance forecasting, inventory optimisation, and supply planning. Trace Consultants assist private equity firms in selecting and implementing APS solutions tailored to the target company’s needs. These systems provide real-time data, advanced analytics, and decision support tools that improve overall supply chain performance.

Embracing Automation and Digitalisation

Automation and digitalisation are key drivers of efficiency in modern supply chains. Trace Consultants identify opportunities for automating manual processes, reducing human error, and improving productivity. This includes implementing robotic process automation (RPA), Internet of Things (IoT) solutions, and digital dashboards for real-time monitoring and reporting. By embracing automation and digitalisation, private equity firms can achieve significant cost savings and operational efficiencies.

Exit: Maximising Value and Ensuring a Smooth Transition

The exit phase is the culmination of the private equity investment cycle. During this phase, it is crucial to maximise the value of the transformed company and ensure a smooth transition for the new owners. Trace Supply Chain Consultants provide invaluable support during this phase.

Showcasing Operational Improvements

Trace Consultants help private equity firms showcase the operational improvements achieved during the transformation phase. This includes providing detailed reports, performance metrics, and case studies that highlight cost savings, efficiency gains, and enhanced customer satisfaction. These success stories enhance the company’s attractiveness to potential buyers and increase its market value.

Ensuring a Smooth Transition

A smooth transition is essential for maintaining business continuity and preserving the value created during the investment period. Trace Consultants work closely with the target company’s management team and the new owners to ensure a seamless handover. This involves transferring knowledge, providing training, and supporting the implementation of best practices. By ensuring a smooth transition, Trace Consultants help secure the long-term success of the target company.

Partnering with Trace Supply Chain Consultants

Private equity firms face numerous challenges throughout the acquisition, transformation, and exit phases. By partnering with Trace Supply Chain Consultants, they can navigate these challenges effectively and maximise the value of their investments. From comprehensive due diligence to supplier rationalisation, infrastructure optimisation, and leveraging advanced technology, Trace Consultants offer tailored solutions that drive operational efficiency, reduce costs, and enhance overall performance.

For private equity firms looking to achieve superior returns and build sustainable, high-performing companies, Trace Supply Chain Consultants provide the expertise and support needed to succeed in today’s competitive market. Partnering with Trace means investing in a future of optimised supply chain operations and maximised investment value.

‍

Related Insights

Planning, Forecasting, S&OP and IBP
July 3, 2023

Empowering S&OP Implementation Success through Experienced Project Management

This article sheds light on how a proficient supply chain project manager can significantly contribute to the successful implementation of an effective S&OP strategy.
Read more

Sales and Operations Planning (S&OP), a vital process for many businesses, helps align various functional areas, balance supply and demand, and streamline organisational goals. However, successfully integrating S&OP within an organisation can be a challenging task. This article sheds light on how a proficient supply chain project manager can significantly contribute to the successful implementation of an effective S&OP strategy.

Unravelling the Complexity

Implementing an effective S&OP process involves a broad range of activities, from aligning multiple departments and managing stakeholders to utilising advanced planning tools. An experienced project manager understands these complexities and navigates them efficiently. They ensure all elements come together to form a seamless and well-integrated S&OP process that serves the strategic objectives of the organisation.

Mitigating Risk

Risks are an inherent part of any significant change or implementation, and S&OP is no exception. A skilled project manager proactively identifies potential risks and develops strategies to manage them effectively. Their experience and expertise can help anticipate challenges, devise appropriate contingency plans, and implement actions promptly to ensure smooth project execution.

Bridging the Gap Between Stakeholders

A critical aspect of S&OP implementation is aligning the different functional areas of an organisation, each with unique priorities and concerns. An effective project manager acts as a bridge between these stakeholders, facilitating communication, fostering understanding, and driving alignment towards the common goal of a successful S&OP implementation.

‍

Selecting the right Advanced Planning System (APS)

‍

Selecting the right Advanced Planning System (APS) to support the S&OP implementation is a crucial step that requires careful consideration and expert guidance. A wide range of APS technologies are available on the market, each with their unique features and benefits, such as SAP's Advanced Planner and Optimizer (APO), Oracle's Advanced Supply Chain Planning (ASCP), and Kinaxis RapidResponse.

An experienced project manager plays an essential role in this selection process. They understand the specific needs of the organisation and the capabilities of different APS technologies. By aligning these two aspects, they can recommend an APS solution that perfectly fits the organisation's requirements and strategic goals. This selection significantly impacts the success of the S&OP implementation, as the chosen APS technology forms the backbone of the planning process, enabling accurate forecasting, efficient resource allocation, and effective decision-making. Therefore, the project manager's expertise is invaluable in this crucial decision-making process.

‍

Leading Change Management

Implementing S&OP involves changes to processes, roles, and systems within an organisation. An experienced project manager is well-versed in change management principles, which they can leverage to guide the organisation smoothly through this transition. They can develop a robust change management strategy that ensures all stakeholders understand, accept, and adapt to the new processes effectively.

Delivering Value Through Effective S&OP Implementation

An adept project manager knows how to extract maximum value from an S&OP process. By aligning the S&OP strategy with the organisation's broader goals, they can ensure the process delivers tangible benefits, such as improved forecast accuracy, streamlined operations, and better customer service.

The successful implementation of an effective S&OP process within an Australian organisation can greatly benefit from the expertise of an experienced supply chain project manager. Their unique skills, knowledge, and strategic approach can make a significant difference, helping the organisation navigate the implementation journey, manage risks, align stakeholders, manage change, and deliver substantial value.

‍

Contact us today, trace. your supply chain consulting partner.

‍

Planning, Forecasting, S&OP and IBP
August 26, 2024

Enhance Pharmaceutical Supply Chain Planning: Essential Capabilities and How Trace Consultants Can Help

Explore the ten must-have supply chain planning capabilities for pharmaceutical companies and learn how Trace Consultants can help your organisation optimise its supply chain processes for success.
Read more

Essential Supply Chain Planning Capabilities for Pharmaceutical Companies

In the highly regulated and complex environment of the pharmaceutical industry, effective supply chain planning is critical to ensure that products are delivered safely, efficiently, and in compliance with stringent regulatory requirements. Pharmaceutical companies face unique challenges in their supply chain operations, including managing shelf-life, navigating regulatory approvals, and planning for clinical trials. This article explores ten must-have supply chain planning capabilities that are essential for pharmaceutical companies to maintain operational excellence and achieve business success.

We will delve into each of these capabilities, highlighting their importance and providing insights on how pharmaceutical companies can optimise their supply chain planning processes. Additionally, we will discuss how Trace Consultants can assist organisations in implementing these capabilities to enhance their supply chain performance.

1. Regulatory Requirements: Regulatory Planning

Navigating the complex web of regulatory requirements is one of the most significant challenges for pharmaceutical companies. Regulatory planning involves ensuring that all supply chain activities comply with national and international regulations, including those related to manufacturing, distribution, and product safety. Effective regulatory planning helps companies avoid costly delays and penalties while ensuring that their products meet all necessary standards for market entry.

How Trace Consultants Can Help:

Trace Consultants offers expertise in regulatory planning, helping pharmaceutical companies navigate the complexities of compliance. By providing guidance on regulatory requirements and assisting with documentation and approval processes, Trace Consultants ensures that companies can bring their products to market quickly and efficiently while adhering to all regulatory standards.

2. Shelf-Life Requirements: Shelf-Life Planning

Shelf-life planning is critical for pharmaceutical products, many of which have limited stability and require strict temperature controls. Managing shelf-life effectively ensures that products are delivered to customers while still within their safe usage period, reducing the risk of waste and ensuring patient safety. This capability requires precise planning and coordination across the supply chain, from manufacturing to distribution.

How Trace Consultants Can Help:

Trace Consultants helps pharmaceutical companies optimise their shelf-life planning processes by implementing advanced inventory management systems and providing strategies for maintaining product integrity throughout the supply chain. Their expertise ensures that products are stored and transported under optimal conditions, minimising the risk of spoilage and ensuring timely delivery.

3. Artwork Planning

Artwork planning involves managing the design, approval, and production of packaging and labelling for pharmaceutical products. This capability is crucial for ensuring that packaging complies with regulatory requirements and effectively communicates important information to healthcare providers and patients. Delays or errors in artwork planning can lead to costly recalls or delays in product launches.

How Trace Consultants Can Help:

Trace Consultants provides support in managing artwork planning processes, from initial design to final production. By coordinating with regulatory bodies and ensuring that all packaging meets industry standards, Trace Consultants helps pharmaceutical companies avoid delays and ensure that their products are market-ready.

4. Launch and Tender Planning

Successful product launches and tenders require meticulous planning and coordination across multiple departments, including marketing, sales, and supply chain. Launch and tender planning involves forecasting demand, securing manufacturing capacity, and coordinating distribution to ensure that products are available when and where they are needed. This capability is essential for maximising market opportunities and achieving business objectives.

How Trace Consultants Can Help:

Trace Consultants assists pharmaceutical companies in planning and executing successful product launches and tenders. By providing demand forecasting, capacity planning, and distribution strategies, Trace Consultants ensures that companies can meet market demand and achieve their launch goals without disruptions.

5. Sequencing and Setup Optimisation

Sequencing and setup optimisation involves planning the order and timing of production processes to maximise efficiency and minimise downtime. In the pharmaceutical industry, where production processes are often complex and highly regulated, optimising sequencing and setup is crucial for maintaining production schedules and meeting delivery deadlines.

How Trace Consultants Can Help:

Trace Consultants provides expertise in optimising production sequencing and setup for pharmaceutical companies. By analysing production workflows and implementing best practices, Trace Consultants helps businesses reduce downtime, improve efficiency, and maintain consistent production output.

6. QA/QC Approval Flows

Quality Assurance (QA) and Quality Control (QC) are critical components of the pharmaceutical supply chain, ensuring that products meet the highest standards of safety and efficacy. QA/QC approval flows involve the systematic review and approval of products at various stages of the supply chain, from raw materials to finished goods. This capability is essential for maintaining product quality and compliance with regulatory standards.

How Trace Consultants Can Help:

Trace Consultants assists pharmaceutical companies in streamlining their QA/QC approval flows by implementing robust quality management systems and providing guidance on compliance with industry standards. Their expertise ensures that products meet all necessary quality requirements before reaching the market.

7. Clinical Trials

Clinical trials are a crucial part of the pharmaceutical development process, involving the testing of new drugs or treatments on human subjects. Effective supply chain planning for clinical trials includes managing the sourcing, production, and distribution of trial materials, as well as coordinating with research sites and regulatory bodies. This capability is essential for ensuring the successful execution of clinical trials and the timely approval of new products.

How Trace Consultants Can Help:

Trace Consultants offers support in planning and managing the supply chain for clinical trials, from sourcing trial materials to coordinating logistics. By providing expertise in regulatory compliance and supply chain management, Trace Consultants helps pharmaceutical companies conduct successful clinical trials and bring new products to market more quickly.

8. CMO Planning

Contract Manufacturing Organisations (CMOs) play a vital role in the pharmaceutical supply chain, providing manufacturing services for companies that outsource production. CMO planning involves managing relationships with CMOs, coordinating production schedules, and ensuring that CMOs meet quality and regulatory standards. This capability is essential for maintaining production capacity and ensuring that products are manufactured to the required specifications.

How Trace Consultants Can Help:

Trace Consultants provides expertise in managing CMO relationships and planning production with external partners. By coordinating production schedules and ensuring compliance with quality and regulatory standards, Trace Consultants helps pharmaceutical companies maximise the value of their CMO partnerships.

9. Inventory Planning and Optimisation

Inventory planning and optimisation involve managing stock levels to ensure that products are available to meet demand while minimising holding costs and reducing the risk of obsolescence. In the pharmaceutical industry, where products often have limited shelf lives and strict storage requirements, effective inventory planning is critical for maintaining supply chain efficiency and preventing stockouts or excess inventory.

How Trace Consultants Can Help:

Trace Consultants assists pharmaceutical companies in optimising their inventory planning processes by implementing advanced inventory management systems and providing strategies for balancing supply and demand. Their expertise ensures that companies can maintain optimal stock levels and minimise costs while meeting customer needs.

10. Strategic/Long-Range Planning

Strategic and long-range planning involves developing a vision for the future of the supply chain and aligning supply chain activities with long-term business goals. This capability includes forecasting future demand, planning for capacity expansions, and investing in new technologies or infrastructure. Effective strategic planning is essential for ensuring the long-term success and sustainability of the pharmaceutical supply chain.

How Trace Consultants Can Help:

Trace Consultants offers expertise in strategic and long-range planning for pharmaceutical companies. By providing insights into market trends, demand forecasting, and capacity planning, Trace Consultants helps businesses develop and execute long-term supply chain strategies that support their growth objectives.

Enhancing Pharmaceutical Supply Chain Capabilities with Trace Consultants

Pharmaceutical companies face unique challenges in managing their supply chains, from navigating regulatory requirements to optimising production and distribution processes. By focusing on the ten must-have supply chain planning capabilities outlined in this article, organisations can ensure that they are well-positioned to meet these challenges and achieve business success.

Trace Consultants, with its extensive experience in pharmaceutical supply chain management, provides the guidance and support needed to implement these capabilities effectively. Whether your organisation is looking to improve regulatory planning, optimise inventory management, or develop long-term supply chain strategies, Trace Consultants can help you achieve your goals.

For more information on how Trace Consultants can assist your organisation in enhancing its pharmaceutical supply chain capabilities, reach out to their team of experts today.

‍

Planning, Forecasting, S&OP and IBP
July 3, 2023

Advanced Planning Systems for Pharmaceutical Operations

Advanced Planning Systems can help to streamline service delivery, enhance the efficiency of their working capital, and reduce operating costs.
Read more

Advanced Planning Systems for Pharmaceutical Operations in Australia

With the ever-evolving dynamics of the Australian pharmaceutical industry, companies are steadily looking for innovative ways to streamline service delivery, enhance the efficiency of their working capital, and reduce operating costs. One solution that's been making a substantial impact is the implementation of Advanced Planning Systems (APS). These systems support a comprehensive Integrated Business Planning (IBP) approach, thereby transforming several operational aspects of the industry.

‍

APS: An Unmatched Asset for Pharma Operations

Advanced Planning Systems (APS) are sophisticated technological solutions designed to automate and optimise planning processes across various operational areas. These systems have profound implications for the pharmaceutical sector, where they can significantly enhance demand forecasting, fine-tune resource allocation, optimise production schedules, and revolutionise distribution management.

The Australian pharmaceutical market has several promising APS solutions to consider. One robust option is SAP's Integrated Business Planning for Supply Chain, which offers a comprehensive set of tools for end-to-end supply chain management. Additionally, Oracle's Supply Chain Planning Cloud is making waves with its powerful predictive analytics and decision-making capabilities.

Moreover, industry-specific solutions, such as IBS Pharma, cater to the unique needs of pharmaceutical businesses. Other potent options include Infor's CloudSuite Supply Chain Planning and Kinaxis RapidResponse, both of which provide pharmaceutical companies with rich, customisable functionalities.

Enhancing Service Levels with APS

In the fast-paced pharmaceutical world, meeting customer demand is not just necessary, but critical. According to a comprehensive study by Gartner, companies using APS have seen up to a 30% improvement in service levels. This improvement is largely due to advanced demand forecasting capabilities, which minimise the risk of stockouts and overstocks, and subsequently enhance customer satisfaction.

Take Pfizer Australia, for example. Following the implementation of an APS, Pfizer reported a remarkable increase of 20% in their service level within a year. This real-world example underscores the profound impact APS can have on pharmaceutical service delivery.

Supercharging Working Capital Efficiency via APS

Effective cash flow management is at the heart of pharmaceutical operations. Deloitte's research suggests that businesses utilising APS have seen an average reduction of 20% in inventory carrying costs. By providing advanced forecasting and planning capabilities, APS allows companies to maintain optimal inventory levels, thereby freeing up working capital for other critical operations.

One case that shines a light on this benefit is Starpharma, an Australian pharmaceutical company. The firm reported a considerable 15% reduction in inventory costs after incorporating an APS solution into their operational framework, illustrating the transformative power of APS on working capital efficiency.

Harnessing APS for Operating Cost Reduction

The role of APS extends beyond enhancing efficiency. It also plays a crucial part in reducing operating costs across the pharmaceutical supply chain. Accenture's study reveals that businesses integrating APS can expect a reduction in operating costs of up to 15%, thanks to streamlined production scheduling and optimised resource allocation.

A prime example is Sigma Healthcare, one of Australia's largest pharmacy wholesalers and distributors. After implementing an APS, they experienced a significant drop in operating costs coupled with an increase in productivity, showing the tangible benefits of APS integration.

‍

Advanced Planning Systems are not just software solutions but strategic investments that can drive pharmaceutical companies towards more efficient, effective, and competitive operations.

‍

By leveraging the potential of APS, Australian pharmaceutical companies can enhance service levels, optimise working capital utilisation, and reduce operating costs, all while supporting a robust Integrated Business Planning approach.

Technology such as APS is continually paving the way for a more agile and resilient pharmaceutical industry in Australia. It's becoming evident that APS are not just useful tools, but rather essential assets for pharmaceutical businesses striving for operational excellence.

The likes of SAP, Oracle, IBS Pharma, Infor, and Kinaxis are just a few of the options available for businesses seeking to revolutionise their operations through APS. As the industry continues to evolve, these and other technological solutions will play a crucial role in shaping the future of the Australian pharmaceutical landscape.

However, it's not just about adopting technology; it's about fully integrating these systems into the strategic planning and execution processes. It's about a commitment to ongoing improvement and a dedication to leveraging the transformative power of technology to drive better outcomes across the pharmaceutical supply chain.

Pharmaceutical businesses that can successfully harness the power of Advanced Planning Systems will position themselves for increased competitiveness and growth in an ever-evolving industry. The examples of Pfizer, Starpharma, and Sigma Healthcare illuminate the path towards this future, showing us that with the right tools and approach, significant improvements in service levels, working capital efficiency, and operating costs are not only achievable but well within reach.

‍

Contact us today, trace. your supply chain consulting partner.