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Challenges Obstructing the Execution of Cost Optimization in the Pharmaceutical Industry
- Granular Data Collection and Analysis
- Data Integration and Quality Assurance
- Complexity of Cost Structures
- Scalability and Flexibility of Cost Management Analytical Systems
- Comprehensive Benchmarking and Analysis
- Timeliness of Reporting
- Alignment with Strategic Objectives
How Stratic Can Uncover Cost Optimization Challenges for Pharmaceutical Clients
- Detailed Product Cost Calculation
Calculate detailed product costs for the same SKU by plant, time period, lot, batch, packaging type, or variant, enabling precise cost tracking and management.
- Specific and Blended Cost Analysis
Calculate line or route-specific costs and develop meaningful blended costs based on the most appropriate driver, ensuring accurate cost allocation and optimization.
- BOM and Recipe Management
Manage detailed Bills of Materials (BOMs) or recipes, including all variations and substitutions that could drive different costs, to ensure flexibility and accuracy in cost management.
- By-product and Co-product Valuation
Accurately value by-products and co-products, assigning cost either by crediting market price or absorbing a percentage of cost to the primary product, ensuring comprehensive cost allocation.
- Scenario-Based Cost Analysis
Analyze multiple cost scenarios based on changes in material, process or equipment, regulation and compliance requirements, shelf life, potency, or any other variable, allowing for proactive cost management and strategic planning.
- ERP and MES Integration
Integrate tightly with ERP/finance, shop floor MES, and process control systems to ensure seamless data flow and accurate cost tracking across all operational levels.
- Revenue and Profitability Analysis
Capture revenue information to determine product and customer profitability at multiple levels, providing valuable insights for strategic decision-making and profitability enhancement.
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