Supply Chain Configuration for Perrigo

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Supply Chain Network Configuration for Perrigo

Perrigo develops, manufactures and distributes over-the-counter (OTC) and prescription pharmaceuticals, nutritional products and active pharmaceutical ingredients (API).

Project Objectives/Challenges

Increased sales and growth through acquisitions had resulted in more inbound and bulk shipments into the production locations from farther away and from different sources.

In many instances, operations within the current network were based upon where they were when acquisitions were made, resulting in inefficiencies.

What Sedlak Did

Sedlak conducted a supply chain network analysis that considered:

Inbound and outbound transportation costs
Fixed and variable facility costs by region
Costs of pre-paid and charged back outbound transportation
Projected demand based on a future five-year growth period

Multiple separate models were run to determine optimum network configuration.

Results

We recommended the optimum network configuration and determined the estimated start-up and ongoing costs, including closure and severance costs for affected facilities within the network.

Our analysis identified the best flow of different products through multiple facilities utilizing both existing and new locations.

Perrigo was provided with a sensitivity analysis of solutions to understand the impact of other possible acquisitions/changes.

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