GSK Integration: Time is Money

In 2001, Glaxo Wellcome merged with SmithKline Beecham to form one of today’s giants in the pharmaceutical and consumer healthcare sector.

Read to understand how we enabled seamless cross-trade to deliver early commercial value across two global pharma businesses, without compromising long-term performance.

Client Context

Three months into the merger between GlaxoWellcome and SmithKline Beecham, GSK’s billion-pound IT function was in the midst of post-merger integration. Reflecting one of dozens of ongoing challenges, the two pharmaceutical giants operated under two distinct IT and supply chain models driving their commercial and manufacturing functions. Cross-trade between the two groups needed to happen quickly to allow the commercial departments to access manufacturing and commercial capabilities across the transactional divide. To achieve this quickly post-close, a data translation mechanism needed to be implemented to align product information across the two companies’ various systems.

Solution

This was far more than a simple IT problem: The mechanisms for cross-trade also needed to recognise the different supply chain processes within each legacy business. In this case, SmithKline Beecham largely operated a ‘pull’ model in which commercial groups drove manufacturing plans; in GlaxoWellcome, their ‘push’ model saw manufacturing sites determine their own production plans with reduced influence from the commercial teams. Process alignment would be critical to short and long-term success. Using a practical
framework that combined legacy approaches and our own best practice, Oaklin led a multi-million pound initiative to deliver a tactical integration of GW’s and SB’s commercial, manufacturing and supply chain processes and associated systems.

Client Outcome

Cross-trade was delivered on time and under budget: Within eight weeks, the technology and new processes were ready to roll out across the global business units. This success enabled further growth opportunities without significant changes to either existing business. Successful delivery of this project ‘bought time’ for GSK to complete its 18-month supply chain review and manufacturing rationalisation programme. An innovative approach that simplified integration without cutting corners, Oaklin helped GSK deliver benefits early without sacrificing long-term business flexibility and performance.

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M&A

Carlos Keener

Associate Partner