soothing your supply chain headaches

S O O T H I N G Y O U R S U P P LY C H A I N H E A D A C H E SA L I F E S C I E N C E S & S U P P LY C H A I N B E N C H M A R K I N G S U R V E Y


“As supply chain models change and adapt, this is the perfect opportunity to benchmark our supply chain strategy with the best of the best”Andy Walker, Head of Supply Chain Strategy, Design and Delivery EMEA, Merck


ContentsIntroduction

PT 1 | Challenges & Opportunities

PT2 | Requirements

PT3 | Investment & Growth

About LogiPharma

About WBR Digital


IntroductionThe most successful pharmaceutical companies across the globe recognise that a

streamlined supply chain can add considerable value to their business’s bottom line. An

efficient supply chain is an effective differentiator, placing your brand at the head of the

pack in a competitive marketplace.

This report is designed for those who have their finger on the pulse of the industry –

inside you will discover responses to key issues raised to us by leading figures in the

pharmaceutical supply chain industry.

Created by the team behind the LogiPharma conference, we interviewed 100 senior

supply chain executives from large pharma companies across Europe. The job titles

surveyed for this report include: Vice President of Supply Chain Management, Global

Head of Supply Chain & Strategy, Director of SCM & Procurement, Head of Cold Chain

Logistics, amongst others of a similar standing.

Achieve End-To-End Visibility

M AT E R I A L S S O U R C I N G M A N U FA C T U R I N G D I S T R I B U T I O N C U S T O M E R

R AWM AT E R I A L S

M A N U FA C T U R I N GA N D P A C K A G I N G

A C T I V EP H A R M A C E U T I C A L

I N G R E D I E N T S

WA R E H O U S E

WA R E H O U S E

P H A R M A C Y

P AT I E N T S

H O S P I TA L / C L I N I C


Pt. 1 Challenges & Opportunities


What is your number one priority when implementing end-to-end supply

chain visibility?

yWorking more closely with 43% internal teams such as commercial and manufacturing

yChanging internal customer 22% structure

yBuilding better relationships 22% with suppliers

ySoftware and technology 13%

43% of respondents are seeking to work more closely with internal teams to achieve end-to-end supply chain visibility.

End-to-end visibility is the key to demonstrating value in the supply chain. Almost half of respondents believe it is vital that pharma companies work with their manufacturing and commercial teams to streamline information from the

manufacturing stage right through to the customer.


Does your company have a supply chain Centre of Excellence?

Does supply chain contribute to improving the bottom line at your company?

yYes, we have Centres of Excellence for 13% supply chain

yWe have Centres of Excellence but not 29% supply chain specific

yWe are currently putting plans in place 37% to introduce Centres of Excellence

yWe are actively discussing introducing 18% Centres of Excellence, but no plans have been put in place

yNo, we haven’t considered Centres of 3% Excellence

yIt plays a key role 14% yIt’s not having a significant impact right 42%

now yIt’s important but it could be optimised 44%

further

All participants agreed that supply chain has the potential to exert positive influence on their business’s bottom line, however, there is

an almost even split about its current efficiency at doing so.

97% of respondents have an interest in supply chain Centre of Excellence

Supply chain leaders are currently implementing new strategies in end-to-end visibility, transparency and prioritisation. Our results suggest that there is a lot of work still to be done in many organisations before supply chain is able to make a

significant, and a consistent, impact on the bottom line.


What is the biggest professional challenge you are facing at the moment?

Managing the supply

chain for a rapidly

changing portfolio

Managing the supply

chain following a

merger or acquisition

Innovating the

distribution channel

strategy to remain

competitive

Balancing cost

management versus

providing excellent

customer service

Balancing cost

management versus

meeting regulatory

requirements

9%

19%

27%

17%

53%

13%10%

39%

2%

13%

y2016 y2015

53% of respondents are focussed on innovation in the distribution channel to remain competitive.

In 2015, 39% of survey respondents were struggling to balance cost management and the need to provide excellent customer service. In 2016, this focus has shifted to innovation as pharma supply chain executives seek to use

the distribution channel to remain competitive.

These results clearly highlight a current focus on meeting the needs of the customer, whether this is by providing excellent customer service, or by

innovating in the distribution channel.


Pt. 2 Requirements


How far along is your company in implementing direct-to-patient

distribution channels?

yFully operational – we have been distributing by direct-to- 15% patient channels for over a year

yFully operational – we started distribution in the last 17% 12 months

yWe will be implementing it in the next 1-3 years 60%yWe are actively discussing it but there are no plans to 8%

implement just yet

32% of respondents have fully operational direct-to-patient distribution channels

The development of direct-to-patient distribution channels has been a continuing trend, and these results show its development. However, what is

perhaps more interesting is the 60% respondents who plan to implement direct-to-patient distribution channels in the next one to three years.


Only 24% of respondents feel very prepared for the serialisation requirements outlined in the EU Falsified Medicines Directive, despite the deadline for

compliance in 2017. Developing internal processes and sourcing the right technologies will be of huge importance over the next year to ensure the

requirements are met.

How prepared is your company for the global serialisation requirements outlined in the

EU Falsified Medicines Directive?

59% of respondents in 2016 feel at least somewhat prepared for global serialisation requirements.

Very prepared – we have all of our processes and technologies in place

Somewhat prepared, but we are still developing our processes and technologies

Not very prepared, it would be good to find out how other companies are managing this

Not at all prepared - we need more information

24%

4%

35%

37%


Does your company need to change its global network design to match a changing portfolio?

Yes, in fact we have

recently changed

our global network

design

Yes, we are in the

process of changing

our global network

design

Yes, we are actively discussing

changing our global network

design, but no plans have

been put in place

No our current global

network design matches

the need of our changing

portfolio

Not at all – our

portfolio isn’t

changing

23%

7%

32% 32%34%

39%

10%

20%

1% 2%

y2016 y2015

23% of respondents have recently changed their network design.

Here we can clearly see the shift as companies move from the planning stages of changing their global network design to completion. However, for many

companies there remains a lot to be done.

Supply chain decisions are constantly being made to ensure the business can fully capitalise on the demands of rapidly changing portfolios. In addition, pharma companies are constantly making changes in order to best integrate

legacy infrastructure with new flows to meet the latest business requirements.


The consensus on these results is not without contention, however. A significant portion of respondents believe that KPIs and performance monitoring

can damage the relationship with the supplier, and therefore a balance of performance management and relationship management must be reached.

Should you use KPIs to help monitor the performance of suppliers?

More than half of organisations believe that KPIs are very effective in monitoring the performance of suppliers.

51% 37%12%

Yes absolutely, this has beenvery e�ective for us

In some situations, KPIs can help with supplier performance

Not at all, it damagesthe relationship with

the supplier and is notuseful


Do you think your company should collaborate with others to achieve

a more effective supply chain?

51%Yes absolutely – it’s important to work with other pharma companies to develop a more effective supply chain

37%Possibly, but it depends on the situation

11%No – supply chain should be used to differentiate from competitors

Clearly collaboration is an important part of the ability to create a more effective supply chain. Respondents differed, however, on the situations under which

collaboration is appropriate, with 37% of respondents feeling that collaboration is very much situational.

More than half of respondents are unequivocal about the importance of collaborating to develop a more effective supply chain.


Pt. 3 Investment & Growth


Which region provides supply chain with the greatest opportunity to influence

your company’s market access?

Asia Pacific

Rest of AsiaAfrica

In 2015, Asia pacific took the top spot worldwide as the region with the greatest opportunity to influence market access capability. In 2016, the focus has moved

primarily to Eastern Europe, closely followed by MENA and the rest of Asia.

31% of respondents see the greatest opportunity to influence market access in Eastern Europe.

3%

28%

9%

22%

31%

19%24%

17%

18%13%

11%

41%

6%

13%

Eastern Europe

Middle East & North Africa

Latin/South America

Russia & CIS

y2016 y2015


What do you think the number one investment priority for meeting GDP

guidelines should be?

The consensus around the most important investment priority for meeting GDP guidelines is still fragmented – however the top spot in just one year has moved from risk assessment and adapting transportation routes to a focus on

investment in active solutions.

Pharma companies often struggle to choose between the vast number of temperature control tools and technologies available with which to meet the EU GDP guidelines. Possibly as a result of limited budgets, active solutions are the

most popular solution for 2016.

41% of respondents favour investment in active solutions.

Risk assessing

and adapting

transportation routes

Consolidating or finding

new transportation

service providers

Reassessing and changing

strategy for freight –

sea vs. air. vs. truck vs. rail

Investing in active

solutions

Investing in passive

solutions

18%

56%

21%

13%17%

13%

41%

11%

3%7%

y2016 y2015


Which one of the following changes is the most likely to occur in 10 years’ time?

Supply chain

will have a much

greater influence on

market access

Supply chain will have a

much more significant

impact on the bottom line

of the company

Direct to hospital and

pharmacy distribution will be

significantly more common

Supply chains will be far

more segmented and

specialized according to

product

24%20%

38%

30%26%

17%

12%

33%

y2016 y2015

38% expect supply chain to have a much greater impact on the bottom line of the company.

The biggest predicted change for 10 years’ time is that supply chain will have a much more significant impact on the bottom line of the company.

Additionally, compared with 2015, there was nearly a ten percent rise in the amount of respondents who expect direct-to-hospital distribution to become far

more common.

Senior supply chain professionals are currently working on strategies to add value to their business – including implementing end-to-end visibility and taking

a more customer-centric approach.


About LogiPharma

About WBR Digital

LogiPharma is the longest-running supply chain event celebrating its 16th consecutive year in 2016. Since its inception thousands of supply chain professionals from the top pharma, generics and animal health

companies took their careers to new levels by learning new skills and making new contacts.

Over the years the LogiPharma network of past attendees has grown and grown providing those new to the event access to the most senior pharma supply chain leaders for unique professional development

opportunities.

Meet and benchmark with your peers: 30+ hours of networking, learning and practical takeaways from case studies, round table discussions, topic driven lunches, seminars, and more.

A programme designed alongside an Advisory Board of leading supply chain executives

Get insight into strategies from across the globe: 50+ countries in attendance

Network with your peers in an informal setting at our drinks and networking receptions

VDOWNLOAD THE AGENDA NOW

At WBR Digital we design and execute bespoke content marketing campaigns all year round, delivering our clients unparalleled access to the wider WBR event audience.

We believe in creating rich content that engages and inspires. We conduct in-depth industry research, then add analysis and a double-shot of creativity, before marketing it for you, to targeted audiences of your choosing.

It’s industry research, it’s thought leadership, it’s quality content – it’s the perfect opportunity to generate qualified sales-ready leads.

Contact us to find out how your business could benefit from:

Lead generation campaigns that fit your priorities

Bespoke webinars, benchmarking reports and whitepapers

In-depth research on current fast-moving issues and future trend

The opportunity to position your company as a thought leader

Contact: Chamatkar Sandhu

Digital Sales Director Tel: +44 (0)20 7368 9383 | Email: [email protected]

http://bit.ly/1NfzmrJ

soothing your supply chain headaches

Documents