Case Example

Benchmarking of Cost Heads and Defining Ideal P&L for a Contract Research and Manufacturing Service Provider

Client Challenge

The client was a leading contract research and manufacturing service provider having business units in India, US & UK. The client wanted UC to study various cost heads at one of its UK plant, map it to industry standards and design ideal P&L for future business development and growth.

Our Approach

To understand the requirements for the company UC studied the contract research and manufacturing landscape in India and UK to identify the best practices.

In this process UC was involved in
● Mapping of AS-IS costs across various heads
● Comparison with Industry standards and highlighting areas of improvement
● Conducting benchmarking activity across selected list of competitors
● Identifying best practices
● Scenario building on profitability based on project revenue, direct and indirect costs.

Our Impact

The client received realistic picture in terms of business revenue to be targeted to make site profitable and also work on the operational areas to minimize cost and achieve industry benchmarks.