7 Ways That UK Life Science Companies are Managing Supply Chain Risk
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Learn Seven Key Strategies of Risk Management in Supply Chain and How They Are Helping Companies Around the World
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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. etq.com
- 2. Supply chains within the Life Sciences sector have transformed in recent years, expanding into what can be vast global networks. etq.com
- 3. This has put supply chains under considerable stress from a host of threats, including local regulations, counterfeiting and outdated manufacturing processes. etq.com
- 4. Key to resolving such issues is risk management in supply chain, via the introduction of new processes and solutions. etq.com
- 5. Companies can lower costs and manage risk by overhauling their supply chain processes. etq.com
- 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. etq.com
- 7. But what steps can Life Science companies take to safeguard quality and compliance across their supply chains? etq.com
- 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. etq.com
- 9. For example: For more than 10 years …Pfizer experienced huge growth, its production network swelling to more than… etq.com
- 10. 100facilities across the globe. etq.com
- 11. Such a sprawling network posed real quality and compliance risks. To deal with such a disparate set of networks, the company… etq.com
- 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... etq.com
- 13. 25%reduction in overall costs. etq.com
- 14. Revolutionizing Manufacturing Processes Traditional centralized batch manufacturing is cumbersome and inflexible. 2. etq.com
- 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 etq.com
- 16. Bayer Technology Services created a production process based on this modular approach, leading to a… 15%reduction in starting material costs. etq.com
- 17. Novartis has created a continuous manufacturing facility that has seen a… 25-60%reduction in operational costs. etq.com
- 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… etq.com
- 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. etq.com
- 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. etq.com
- 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. etq.com
- 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. etq.com
- 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. etq.com
- 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. etq.com
- 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. etq.com
- 26. Partnering with EtQ has seen them replaced with just… 1 system. etq.com
- 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. etq.com
- 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 etq.com
- 29. The move has lead to a more efficient and flexible human resources management strategy, that also offers opportunities for revenue generation. etq.com
- 30. Tackling Marketing Volatility Pfizer outsources up to… 40%of its API production. 7. etq.com
- 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. etq.com
- 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? etq.com
- 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. etq.com
- 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