17 July 2020
Oliver Wight case study showcases the resilience of MöInlycke Health Care
When the coronavirus crisis hit, global medical solutions provider MöInlycke Health Care faced a sudden 10-fold increase in demand for Personal Protective Equipment (PPE). This placed enormous pressure on the business to satisfy a short-term need that far outstripped MöInlycke’s production capacity and inventory levels. Export bans created challenges supplying raw materials and finished goods, suppliers increased prices, production time was lost, and transportation became unreliable. It was the perfect storm.
With such a dramatic short-term change in demand, it became clear that new ways of working had to be put in place. Having already established an Integrated Business Planning (IBP) process with support from Oliver Wight in 2009, MöInlycke were able to act quickly to create a crisis management process which would run alongside IBP.
“Even though the crisis created an extraordinary set of circumstances, the IBP process meant we didn’t panic. The behaviours and routine it has brought make it the backbone of our company,” says MöInlycke’s Global Supply Chain Planning & MBM Director, Mikael Kylberg.
Now, with a new crisis management process in place and Integrated Business Planning working alongside it, the MöInlycke team are confident they will meet the predicted demand for PPE equipment up to the end of 2020. Moreover, the increase in PPE demand has offset most of the demand shortfall for other product lines and the company predicts its annual results will be close to its pre-Covid forecast.
“This is a great example of how a company was able to respond quickly with a crisis management process, to handle very dynamic short term demands, while maintaining a strong focus on the future through its IBP process,” says Oliver Wight Partner Jerry Shanahan, “this ensured that coming out of the Covid-19 crisis, the business would continue to thrive and flourish, with continued support from its loyal customers.”
Read more about MöInlycke Health Care’s story in Oliver Wight’s free case study, available to download here.