Case 3: Mid-Sized CDMO

CSTI Case Study: Restore CDMO Relationship with Major Pharma Company

Company: Mid-sized CDMO
CSTI Objective: Course-correct multiple projects for largest customer. Restore imperiled customer relationship. Provide accurate customer revenue forecasts.

SITUATION

  • Uncertain status and timelines across multiple projects
  • Many milestones missed or significantly behind schedule
  • History of sub-standard and inconsistent reporting of data and results
  • Deteriorating customer relationship resulting in delayed receivables significantly impacting corporate cash flow
  • Inability to forecast revenue hindering needed corporate financing arrangements
  • Customer requested remediation

SOLUTION - CSTI Development Management Services

  • Assessed current status via review of project specifications and contractual obligations, and agreed on triage plan with CDMO technical project leads and key customer stakeholders
  • Devised and documented detailed remediation plan with tasks, milestones, timelines, and personnel accountability
  • Documented internal processes (sequence and duration) and ensured that all required CDMO personnel understood internal processes
  • Established consistent communication tools for technical project leads to use when interacting with customer contacts
  • Improved deliverable quality by designing technical report templates and implementing quality assurance processes for report preparation and approval
  • Implemented robust project revenue forecasting process
  • Provided change management leadership: communicate plan; seek feedback; train; resolve roadblocks
  • Managed day-to-day execution of remediation plan and project revenue forecasting, including regular status updates for management and customer

RESULTS

  • Remediation and processes improvement plans quickly devised and implemented
  • High-priority delayed projects were course-corrected in 6 weeks
  • Established formalized reporting system for communicating project status to customer and CDMO management
  • Milestones achieved according to revised plan with high-quality technical report
  • Customer confidence and relationship restored; past due amounts collected; pharmaceutical company continues as a major customer
  • Accurate revenue forecasts provided, satisfying potential lenders and allowing for closing of needed corporate financing, thus avoiding significant cash-flow crisis