Bellwether uses data analytics to deliver actionable insights that inform your unique situation. We help clients improve product profitability, enter competitive new markets, price products for different markets and determine the profitability of operating manufacturing plants.
Building or closing plants requires considerable time and capital. Finding the right strategy can be tough given the uncertainty of products entering and exiting the market, supplier/third-party-manufacturer changes, R&D developments and new markets. If you are torn between a short-term profitability opportunity or a long-term capacity need, we can help you realize the best of both worlds.
Our client’s challenge:
- A pharmaceutical client had significant unused capacity.
- It considered contracting the plant to a third-party but was concerned about needing the capacity in the future.
- We developed a five-year production road map incorporating the client’s R&D pipeline, new market entries and potential volume changes.
- We built a tool to simulate future outcomes and understand conditions that would drive a capacity crunch.
The result: We worked in tandem with our client to determine the optimal third-party contracting timing/terms to increase profits and lower the risk of future shortages.