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Situation

Lundbeck’s supply chain has traditionally been characterised by security, which implies a high amount of stock and long lead times of around 12 months. New market demands, such as expiring patents, required a more responsive time-to-market introduction of new products. Combining this with producers’ pressure on prices and customers’ demand for higher product shelf-life, Lundbeck’s supply chain management set up the goal of reducing their transit time to 1/3 of the current one.

Approach

Valcon helped Lundbeck realise its aim of shorter lead times. This was done through diagnosing supply chain opportunities, lean tool training, roll-outs of lean planning principles by implementing a planning and simulation tool to help the end-to-end planning for each product. This resulted in shorter delivery times and hence customer service improvements, a reduction of tied-up capital, higher productivity in production and fewer losses due to product changes. Project management and coaching were also provided in order to secure successful maintenance of the implemented solutions.

Results

The project resulted in an overall reduction in lead time and an increase in productivity.