Page 40 - Case Study Annual 2015
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Lastly, a blue sky model was built to identify an             Stick to your guns: A problem cannot be solved with
optimal network. Ultimately, the various scenarios            the same thinking that caused it.
were compared through considering total logistics             If you think in silos, you’ll manage in silos: An holistic
costs, proximity to customers, inventory availability and     approach is key to creating a fully integrated solution
supply chain risk in operational, physical, financial and     that delivers value to all stakeholders.
demand terms.
                                                                  You don’t know what you didn’t know: Be prepared
The outcome                                                   for a few curve balls. There will be challenges along the
                                                              way. Adapt, learn and move forward.
The solution was refined and implemented. The project
yielded significant cost savings and top-line growth.             Change is never easy: There will be resistance on
Aspen started to grow faster than the market right after      all fronts. Which is why modelling is so important.
the supply network was re-configured, with exponential        Modelling will give the confidence to gain the desired
growth occurring once change management activities            buy-in, and the courage to stick it out.
were completed. This pattern of value creation was
reflected in both value and units.                            What’s next for Aspen?

Insights and benefits of the solution                         Among the driving forces that Aspen pursues is a
                                                              desire for sustainability and the need for growth. To
A number of insights emerged from the model, which            these ends Aspen is exploring the means to achieve
led to a number of actions and benefits:                      these goals.
• s ignificantly, the requirement for excess storage space   • A spen is exploring the option of a centralised call

  was reduced                                                   centre. This would mean one point of contact for
• there was no longer a need to invest in building a           all contacts without the frustrations of attempting
                                                                to find (the correct) telephone numbers. One goal
  new facility                                                  here is for improved customer service, which in
• there were no financial implications to implementation       turn leads to customer satisfaction and repeat
• better rates and fewer stock days improved cash flow         business.
• reduced penalties from third-party suppliers               • As proposed in the model, Aspen would explore at a
• o perational and people changes were implemented             later date the possibility of locating stock in Durban
• training of staff was re-evaluated and implemented           through its partner network. The rationale is that this
• c ollaboration across all business aspects with all          would mean closer proximity to customers; it would
                                                                improve availability in the region; and it would result
  teams and with suppliers                                      in reduced direct costs, to the benefit of all.
• c hallenges became more visible                            • A spen is pursuing its efforts to ensure continued
• enabled a new ability to evaluate scenarios, for             market share growth. Aspen is currently experiencing
                                                                steady growth and the company is determined to
  example, risk, cost, customer relations and more              continue that trend.
• change management is a journey – create capability         • A spen is active in the area of on-going innovation and
                                                                evaluation to match and exceed market and industry
  and competence and that will lead to excellence.              changes.
                                                              • Aspen has over the years maintained a programme
Learnings gathered along the way                                of development of new products and, as a result,
                                                                has maintained its position at the front of the
Value creation through Change Management:                       pharmaceutical industry. •
Some lessons learned during the implementation of the
change management programme included:
• Capability without competence is ineffective and

  competence without capability in inefficient, but
  capability and competence in unison drive excellence.
• It’s a journey of incremental improvements in-between
  steps of growth.
• It is essential to establish capability that can grow the
  company.
• P oor change management on the other hand erodes
  value creation.
Implement collaboration: Successful collaboration,
both upstream and downstream, is a key essential for
success. In Aspen’s case this included collaboration
with hospitals, other state institutions, pharmaceutical
wholesalers, independent dispensers, supplies and,
equally important, internal collaboration.

38 the logistics news case study annual 2015
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