Making the pharma supply chain “SEXY”        RICHARD FARQUHARSON        AstraZeneca Pharmaceuticals        Head of Supply ...
Lead times are long, inventory turnover low                  (Up to 400 days)                    ASEPTIC          UK      ...
?   Reasonably                     predictable demand                     for ~10 years?    ~ 12 years
Stock outs affect patient’s lives and aretherefore unacceptable
Regulatory               Authority +                 Payer             REGULATORPatient       DR              Pharmacist  ...
So what has all this meant historically ? •   Complete aversion to stock outs •   Lots of inventory •   Poor demand manage...
But things are rapidly changing...                           Increasing pressure on prices Even greater regulation        ...
SEXY                                              SOTC                               Distribution                         ...
Supply chain security is a challenge
SEXY                                              Accompanying       Market                                              d...
SEXY                                               Accompanying          Market                                           ...
Why do we need to engage commercial ? Marketing provides customer insight Operations ensures product availability and ma...
How to engage Commercial? Partners not customers Get into the Commercial Business Take ownership of the whole supply ch...
What are your experiences of engaging      the commercial function
Richard Farquharson, Head of Supply Chain & Planning EMEA at AstraZeneca - Making the supply chain "sexy" - How to engage ...
Upcoming SlideShare
Loading in …5
×

Richard Farquharson, Head of Supply Chain & Planning EMEA at AstraZeneca - Making the supply chain "sexy" - How to engage the commercial operations in pharmaceuticals supply management

2,111 views
1,871 views

Published on

Richard Farquharson, Head of Supply Chain & Planning EMEA at AstraZeneca spoke at the SCL Event 2013

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,111
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

Richard Farquharson, Head of Supply Chain & Planning EMEA at AstraZeneca - Making the supply chain "sexy" - How to engage the commercial operations in pharmaceuticals supply management

  1. 1. Making the pharma supply chain “SEXY” RICHARD FARQUHARSON AstraZeneca Pharmaceuticals Head of Supply Chain & Planning for EMEA
  2. 2. Lead times are long, inventory turnover low (Up to 400 days) ASEPTIC UK RoW Japan Italy EU Japan CH Italy Argentina Argentina 2
  3. 3. ? Reasonably predictable demand for ~10 years? ~ 12 years
  4. 4. Stock outs affect patient’s lives and aretherefore unacceptable
  5. 5. Regulatory Authority + Payer REGULATORPatient DR Pharmacist Patient PRESCRIBER DISPENSER CONSUMER DECISION MAKERS
  6. 6. So what has all this meant historically ? • Complete aversion to stock outs • Lots of inventory • Poor demand management & supply planning • Little agility, complex and highly regulated • Yet high gross margins • Limited perceived commercial “value” in what Operations has to offer
  7. 7. But things are rapidly changing... Increasing pressure on prices Even greater regulation Volatile emerging markets
  8. 8. SEXY SOTC Distribution Innovative channels Supply packagingReduction in cost Chain Top line sales security POS data Responsive supply chain Reduced S&OP working Range capital management Excellent Manage stock risk availability Dull
  9. 9. Supply chain security is a challenge
  10. 10. SEXY Accompanying Market diagnostics & access services ? Speed to Brand value proposition CoGs market SOTC Distribution Supply Innovative channels packagingReduction in cost Chain Top line sales security POS data Responsive supply chain Reduced S&OP working Range capital management Excellent Manage stock risk availability Dull
  11. 11. SEXY Accompanying Market diagnostics & access services ? Catalyse Speed to Lead CoGs SOTC & market Partner Distribution channels Supply Innovative packagingReduction in cost Chain Top line sales security POS data Responsive supply chain S&OP Range management Reduced working capital Just Do It Manage Excellent stock risk availability Dull
  12. 12. Why do we need to engage commercial ? Marketing provides customer insight Operations ensures product availability and manages risk....both are essential to deliver effective & efficient, future supply chains The 4Ps are not the sole property of marketing
  13. 13. How to engage Commercial? Partners not customers Get into the Commercial Business Take ownership of the whole supply chain: Right-to-Left thinking Bring innovative ideas and challenge the status quo
  14. 14. What are your experiences of engaging the commercial function

×