$7.9M in Benefits Identified for Canadian Pharmaceutical Cold Chain Company

Our client have over 100+ infusion clinics, 13 pharmacies, and 2 wholesale distribution facilities across Canada to distribute medications from ~ 75 vendors

Annual Value Found
Potential Reduction in Inventory Loss


As our client operates in the pharmaceutical distribution industry, under strict requirements and Health Canada guidelines, it is critical that proper control and visibility be maintained over products and how they are delivered to patients. Over the last 5 years, rapid growth and expansion across Canada had diminished this visibility, creating inventory control and distribution issues. Consequentially, these circumstances within an industry featuring a thin margin of error had led to a $550k+ net loss in 2022, with ~$100k in shipping related errors. TPG was engaged to conduct an objective review of the End-to-End Supply Chain operations aimed at identifying the appropriate process and technology enablers to enhance clarity of distribution capabilities and increase operational maturity.  


Our team worked closely with the client to understand current operational processes, the day-to-day challenges, and the key value creation levers available. Given the high value, price-controlled environment, the importance of cost management was promptly emphasized. Compiling information gathered from on-site observations, walkthroughs, and interviews, as well as data collected from the various client teams, we worked together to identify, validate, and sequence solutions in collaboration with key client stakeholders. This culminated in a pragmatic implementation roadmap of improvement opportunities aligning the client on next steps to scale growth in a sustainable manner through:  

  • Improved operational maturity by transitioning to a data rich organization to support, defining KPI’s and benchmarks, and aligning all BU’s on one cohesive strategy  
  • Increased overall capacity & efficiency by eliminating manual processes, minimizing waste and risk via automation and technology enablers  
  • Improved patient journey by creating a digital environment upstream in the supply chain, arming pharmacists and nurses with tools to better serve patients  
  • Increased warehouse capacity by standardizing and reconfiguring warehouse layouts to optimize material flow  

Anticipating a 12% growth YoY, this effective cost reduction strategy enabled our client to optimize margins and capitalize on the potential for exponential growth, rather than a linear progression.  

Value Created

As a result of this initiative, our client enjoyed both immediate and long-term financial and strategic benefits:  

  • $3.4M reduction in annual spend driven by decreases in freight expenses (22%) and indirect procurement (5.5%)  
  • Decrease in inventory loss by 23% conservatively, yielding a cost avoidance of $316k  
  • Opportunity to reduce annual OpEx by $4.2M based on efficiency gains via technology enablers and automation  
  • By 2028, following the implementation of the roadmap, a target estimate of 21% increase in profit would be realized

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