Antuit’s supply chain optimization models have helped the client achieve nearly US$2 million in cost savings, further enhancing the profitability of the company’s best selling product.

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The information contained in this document is proprietary.
©2016 Antuit. All rights reserved. www.antuit.com
Program Highlights
In the pharmaceutical business, the time from raw
material extraction to delivery of a finished product
can be protracted. Such was the case highest
performing product for a global pharmaceutical
company. Sold all over the world under different
brand names, Isotretinoin is manufactured using
ingredients sourced from multiple suppliers
worldwide and is distributed from global packing
facilities by both sea and air.
The company set out to develop a supply chain
strategy that would help ensure that Isotretinoin
retained its top revenue-generating status in the
market. Specifically, they wanted to understand
the impact of different supply chain configurations,
inventory, total costs and customer service. They
partnered with Antuit and its team of supply chain
optimization experts to explore how variables such
as lead times, minimum order quantities, batch
sizes, production yields, inventory buffer stocks
and testing costs could impact service delivery
performance and profitability.
Over a two-month period, Antuit conducted two
streams of work—strategic network design to
determine the optimal supply chain network for
specific goals as well as constraints and inventory
optimization to determine safety stock levels across
the supply chain. The team developed a baseline
model to quantify DPL’s existing cost to serve its
customers. With this model in place, the team was
then able to answer strategic questions such as:
• How changes in production capacities and
warehouse constraints affect the optimal network
and flow of product through the supply chain
• How changes in packing and testing locations
impact the cost to serve
• How much safety stock is needed to achieve
the desired level of service
Antuit conducted several different scenarios,
including the introduction of new manufacturing
plants, packing locations, alternative transportation
modes and more.
SUPPLY CHAIN PRESCRIPTIONS TRANSLATE TO $2 MILLION IN
BOTTOM-LINE VALUE FOR A GLOBAL PHARMACEUTICAL COMPANY
Challenge
Maintain the success of its top-performing
product amidst the challenges of a lengthy
cycle time from raw materials to finished
product.
Solution
Strategic supply chain design and
inventory optimization models to quantify
the company’s cost to serve and evaluate
alternative supply chain decisions.
Results
Delivered US$2 million in supply chain
savings.

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The information contained in this document is proprietary.
©2016 Antuit. All rights reserved.
About Antuit
Antuit solves business problems with analytics solutions that deliver
measurable and sustainable business value. By combining data, science,
technology and industry expertise, Antuit helps companies gain a
competitive advantage in their respective industries. Antuit’s global
team of dreamers, hackers, and hustlers work across a wide range
of industry sectors, developing and deploying analytics solutions that
help clients anticipate customer needs, predict business outcomes, and
quickly respond and react to business changes. Armed with Antuit’s
analytics-powered sales, pricing, marketing and supply chain solutions,
organizations are better equipped to achieve exceptional business success
in a rapidly changing environment. Founded in 2013 and backed by
Goldman Sachs, Antuit has offices in New York, Chicago, Dallas, London,
Hong Kong, Singapore, Tokyo, Auckland, Melbourne, Bangalore, and Pune.
API
Manufacturers
CMO Packers
Capsule
Manufacturers
Modes of Transportation
Customer Groups
Supply Chain Modeling Parameters
The strategic models projected cost impacts for
each scenario and helped DPL arrive at a number of
actionable and illuminating insights. Among them,
that the opening of a new packaging plant—an option
under consideration—would not be as profitable as
anticipated and that air was the preferred mode of
transportation over sea.
Most important, Antuit was able to show the client
how they could achieve nearly US$2 million in cost
savings through an assortment of other supply chain
adjustments, further enhancing the profitability of
the company’s most important product.