A Swiss company in the packaging industry had shaped the market for highly complex labeling products, particularly for the pharmaceutical industry, for decades. At the time of the mandate, however, the company had lost its technical pioneering role. In addition, problems in production meant that large market shares were being lost. The interim manager was hired as interim CEO and interim CMO to turn the company back into the global market leader in its lucrative segment.
Back to technology leadership with an innovation offensive
After a brief analysis, the interim manager realized that a large part of the company's problems were home-made. The company had rested on its laurels for too long. Competitors now had a technological edge - and were producing at significantly lower costs. After an in-depth discussion, interim managers and shareholders agreed to launch a comprehensive innovation offensive to regain technological leadership and thus win back lost customers.
The company primarily produced - and still produces - labels for labeling pharmaceutical products such as vaccine ampoules or for injection bottles containing antibiotics or high-quality chemotherapeutics. Due to the very high quality and regulatory requirements, the production of the corresponding labels and imprints is very complex. Cartons, labels and package inserts, for example, must rigorously comply with standards and specifications. Due to the international nature of the business, the requirements of the American regulatory authority FDA (Federal Drug Administration) and the standards of the European Medicines Agency (EMA) must be adhered to.
In addition, the batches tend to be small. Another challenge: due to the comparatively high costs at the Swiss site, production must be automated as much as possible - with the lowest possible error rate.
Complete value chain reorganized and realigned
In order to meet these challenges, the interim manager and shareholders decided to reorganize label production from scratch. This encompassed the entire value chain: from design and development to sales, material procurement, production and logistics. Among other things, the guidelines for quality assurance of production processes and environments in the production of pharmaceuticals and active ingredients (Good Manufacturing Practice, GMP) and industry standards such as ISO 9001 or ISO 14001 had to be met. Clear guidelines and processes significantly reduced errors and misinterpretations. The interim manager also had a new ERP system installed, which made a significant contribution to improving throughput times and profitability.
Technological innovation: cleanroom production impresses pharmaceutical companies
The sum of the measures led to the error rate in labeling being reduced from the industry-standard 0.5% to 0.05%. This was also made possible by the fact that the company had created the world's first labeling production facility under cleanroom conditions. The pharmaceutical manufacturers were particularly impressed by this technological innovation and the low error rate. Within a few months of commissioning the new production lines, the company passed audits by a large number of international pharmaceutical companies.
Successful turnaround and new market position expanded
The confidence regained among owners and third-party investors made it possible to invest substantial sums in the further expansion and optimization of production.
The investments in research and development resulted in new solutions for secure printing, labeling and barcoding, which the company brought to market maturity with international partners. One product won the Innovation Champion award at the world's largest trade fair - and the Swiss company has steadily built and expanded its position.
