7 Ways That UK Life Science Companies are Managing Supply Chain Risk
1. 7 Ways that UK Life Science
Companies are Managing
Supply Chain Risk
Seven Key Strategies of Risk Management in Supply Chain and
How They Are Helping Companies Around the World.
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2. Supply chains within the
Life Sciences sector have
transformed in recent years,
expanding into
what can be vast
global networks.
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3. This has put supply chains
under considerable stress
from a host of threats,
including local
regulations,
counterfeiting
and outdated
manufacturing
processes.
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4. Key to resolving such issues is risk management in supply chain,
via the introduction of new
processes and solutions.
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6. 94.4%of supply chain execs working in pharma believe
the supply chain can make a real contribution to
the bottom line, according to Deloitte’s 2015 Life
Sciences Supply Chain Benchmarking Survey.
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7. But what steps can Life Science
companies take to safeguard
quality and compliance across
their supply chains?
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8. Managing Global
Supply Chains
• Increased production networks
• Increased complexity
• Increased costs
These are all key issues for any Life
Science business hoping to expand
global market share with product
development and acquisitions.
1.
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9. For example:
For more than
10 years
…Pfizer experienced huge
growth, its production network
swelling to more than…
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11. Such a sprawling network
posed real quality and
compliance risks. To deal
with such a disparate set of
networks, the company…
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12. • Simplified its manufacturing network
• Standardized processes and
technologies worldwide
• Outsourced its in-house drug
manufacturing to contract
manufacturers
This led to a standardization of
its supply chain’s manufacturing
phase, and critically...
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15. Replacing it with a continuous modular approach
supports a supply chain flow-through operating
model that offers significant benefits:
• Reduction in inventory
• Reduction in lead-time to patient
• Increase in efficiency for product
assurance/stability programs
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16. Bayer Technology Services created
a production process based on this
modular approach, leading to a…
15%reduction in starting material costs.
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17. Novartis has created a continuous
manufacturing facility that has seen a…
25-60%reduction in operational costs.
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18. Clamping Down
on Counterfeiters3.
“Approximately 10% of global
drug supply is counterfeit.” World Bank
Counterfeiting, theft and diversion remain a real and constant threat to the
industry and its supply chains. Only by deploying intelligent product-based
solutions can the life sciences hope to negate the risk. For example…
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19. To enhance risk management in
supply chain, Bilcare Research has
designed and developed a tamper-
evident, non-cloneable tag that can
be used in a package or product
moving through the supply chain.
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20. In effect, this has created a ‘fingerprint’
that can be checked by end-users via a
scanner. The net result? The technology
has saved the US economy…
$1 billionevery year, through
reductions in theft
and diversion.
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21. Building Customer
Loyalty...
… without risking supply chain integrity.
Life Sciences companies are becoming
more brand-savvy and customer-centric,
embracing customer channels associated
with more traditional retailers.
4.
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22. To develop a closer relationship
with customers, Sanofi is already
exploring the potential for reaching
its consumers directly by offering
its products at the point of need,
removing agents
altogether.
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23. “Reaching customers directly and
having the products available at point
of need [will] help companies to develop
their brands as well as the trust of the
patients. This will create loyalty.”
Sevgi Çınar, TR&ME Zone Supply
Chain Optimization Leader, Sanofi.
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24. Coping With Regulation
Transparency, visibility and compliance are
vital to any modern business wishing to
boost risk management in supply chain, but:
73%of companies do not have full
visibility of their supply chains.
5.
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25. Innovators have introduced cloud-based
information repository systems to make every
aspect of their operations traceable at a glance.
For instance, one Life Science
company used more than…
500manual and electronic systems.
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27. Dealing with
Labor Demand6.
Labor demand can vary hugely for Life Science
companies – but how should the sector
deal with workforce fluctuations to ensure
effective risk management in supply chain?
• Bayer used to keep its human resources
pool in-house.
• It recently transferred the pool to an
external company.
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28. This has created two critical benefits:
1. Supplying labor to Bayer
as and when needed
2. Supplying labor to other
companies as and when needed
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29. The move has lead
to a more efficient
and flexible human
resources management
strategy, that also
offers opportunities for
revenue generation.
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31. AstraZeneca outsources…
100%of its API production.
Adopting this strategy has given both
companies the flexibility they need
to deal with market volatility and
new product requirements.
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32. From AstraZeneca and Bayer to Pfizer and Sanofi…
… Life Science companies are embracing technology
and innovation to safeguard their supply chains
from the increased risk posed by globalization.
But is your enterprise doing enough to
protect its own chain?
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33. Takeaways:
• Deploying risk management in supply chain
is now essential in the increasingly global
and fragmented life sciences sector.
• Reducing supply chain risks is proven to
promote business growth and cost reduction
as well as protect chains from threats.
• Implementing management platforms
can increase visibility, transparency and
accountability for compliance, and aid in the
monitoring of supply chain quality levels.
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34. Download your FREE eGuide now
Discover How to Identify and Assess All the
Risks to Your Supply Chain. Download:
Creating a Risk Management
Matrix – A Guide for Your Life
Science Business