Need
Benchmarking and internal assessments demonstrated that this OTC drug company's expense-sales ratios were too high and that the corporation wasn't structured to meet marketplace challenges. Variable overhead expenses were out of synch with reduced production levels and the R&D - Marketing interface resulted in an unfocused product portfolio.
Actions
Worked with top management to assess structure/process implications of revised product portfolio, and analyze, recommend and implement operating efficiencies & cost structure enhancements.
Results
- Improved operating expense/sales ratio to 16% (from approximately 24%).
- Achieved streamlined structure through ~10% headcount reduction.
- Streamlined new product development decision-making process.
- Realized annual cost savings of $12MM.
