The Supply Chain of the Future A LogiPharma Reportmovianto.com/wp-content/uploads/wbr-logipharma-report-01.pdf · 2019-10-21 · The Supply Chain of the Future A LogiPharma Report

The Supply Chain of the Future A LogiPharma Report

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The Supply Chain of the FutureA LogiPharma Report

ContentsIntroduction

Getting ahead of the game in supply chain

United Cargo

OM Movianto

Part 1: Challenges and Opportunities

Part 2: Investments and Actions

Part 3: Supply Chain Visibility

About E2open

About OM Movianto

About United Cargo TempControl

About WBR Digital

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LogiPharma is without doubt the number one industry supply chain conference in Europe. The combination of high-quality presentations and opportunities to network with peers from other companies makes it unique.

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Arie Moruanx, Global Surgery Planning Excellence Director

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The Supply Chain of the FutureA LogiPharma Report 02

Introduction

Now, perhaps more than ever, Supply Chain is at the very heart of success for the world’s most important pharmaceutical companies.

As a result the hunt is on for innovative ways to transform the supply chain to enable on-time delivery in the most cost-efficient manner possible. Although this may seem a modest proposal, it presents significant challenges.

From rapid shifts in supply and demand, to impending regulatory changes, disruptive technologies and, of course, the need to maintain supply chain integrity, there are plenty of stress-factors to be aware of – and solutions to be found.

In advance of the LogiPharma 2017 conference, we wanted to investigate some of the issues which are driving transformation in the pharmaceutical supply chain today. We approached 100 senior decision makers in the industry, with job titles like Vice President of Supply Chain Management, Global Head of Supply Chain, Director of SCM & Procurement, as well as others of a similar standing to compile this research report.

The results of our research have been aggregated, anonymised and are presented here to give you an insight into how your peers are responding to these challenges.

Additional contributors

Patrick LemoineVice PresidentProduct MarketingE2open

Mark JamesVice President OM Movianto Europe

Mary TussingManagerGlobal Business Development United TempControl


Getting ahead of the game in supply chain

Patrick Lemoine, VP Product Marketing, E2open

The pharmaceutical industry has been one of the best-performing industries of the past decades with pharma companies excelling at many disciplines – research and development, manufacturing, sales and marketing – while maintaining the highest safety and quality standards. Today the pharma industry is going through major changes: the rise of generics and the resulting competitive intensity, an ever-growing product portfolio, demanding customers and retailers, and new regulatory requirements.

The supply chain function has a key role to play to help address the new challenges. In particular, increasingly global and outsourced supply chains bring additional complexity and many pharma companies struggle to run increasingly “virtual” supply chains. Today’s virtual supply chains require a much higher degree of coordination and alignment across all supply chain partners and activities. Achieving better supply chain visibility and collaboration across the entire supply chain is not something ERP systems or traditional business applications can solve because they only focus on what’s happening inside a company’s four walls. As a result, pharmaceutical companies are

recognizing that this new setup requires advanced solutions.

Leading pharma companies are, to a large extent, leveraging the experience of other industries while taking into account the specifics of the pharma industry. The new approach is to run such a multi-enterprise supply chain through a supply chain operating network such as that provided by E2open. The foundation is a business network that connects all partners in real-time for true end-to-end visibility and collaboration. Such a network also allows companies to have deep visibility into the operations of their contract manufacturers to capture quality as well as batch information – so companies can trace quality issues even if they outsource production. Once this platform is in place, dedicated supply chain solutions provide the required insights and decision-support to supply chain teams.

A key area that has emerged is the importance of better managing the downstream part of the supply chain, where new technologies like demand sensing – first adopted by consumer goods companies – can dramatically help pharmaceutical companies increase their on-shelf availability, in hospitals or at retail locations.

When companies deploy such approaches, the benefits are substantial:

l Up-to-date, supply chain visibility – “one version of the truth” shared across all partners of the extended supply chain

l Full quality control of CMOs

l as required for traceability and serialization

l Higher on-shelf availability, generally with lower inventories

l Through smarter channel allocations, better margins and also ultimately higher market share

The early adopters in the pharma industry are already capturing these benefits, putting themselves ahead of their peers.

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Healthcare Dedicated Solutions

Over recent years there has been significant polarization of pharmaceutical products requiring increasingly complex and flexible supply chain solutions. From basic regulatory compliance and temperature control through to special handling, monitoring and security arrangements for sensitive and specialised products together with diverse final mile distribution requirements, the pharmaceutical industry faces increasing supply chain challenges.

As a healthcare dedicated solution provider OM Movianto offers strategic supply chain management to overcome these hurdles with best- in-class logistic solutions, adhering to highest quality standards, in excess of basic GDP and GMP regulation, designed to maintain the brand promise of the manufacturer to their customer or patient. OM Movianto continues to position itself as an essential partner

for the pharmaceutical industry and has the capability to handle the most demanding of specialised product order management, storage, handling and distribution requirements.

OM Movianto is part of US-based O&M Inc., headquartered in Richmond, Virginia. With a diverse product and service offering, O&M Inc. serves hospitals, integrated healthcare systems, group purchasing organisations, healthcare supplies and the federal government.

OM Movianto is dedicated to being the preferred European healthcare solutions partner with best-in-classquality for the pharmaceutical, biotech, medical device and diagnostic industries. We offer outsourcing services along thesupply chain such as warehousing,transportation, active temperature control logistics as well as Value Added Services; order to cash and sourcing.

OM Movianto’s international clients benefit from a pan-European network, a broad range of healthcare logistics services, the know-how of the local markets and uncompromising quality standards like ISO 9001 and ISO 13485. The company has expanded rapidly over the last few years. More than 1,900 teammates are managing over 275,000 pallet locations spread over a network of 20 wholly owned warehouses in 11 European countries.

Today OM Movianto operates in three regions in Europe with capabilities in: West (United Kingdom and Eire), North (Belgium, Netherlands, Germany, Switzerland, Denmark, Nordics, Poland, Czech Republic and Slovakia), and South (France, Spain).

The Supply Chain of the FutureA LogiPharma Report05

Part One: Challenges and Opportunities


Supply Chain eyes Asia Pac for market access capabilityWhich region do you think provides supply chain with the greatest opportunity to influence the market access capability of your company?

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16%Russia & CIS

18%

Eastern Europe

3%

Middle East &North Africa 7%

Africa

25%Asia Pacific

16%Latin/South America

15%Rest of Asia


Increasing forecast accuracy is a major challengeWhat are the biggest challenges you face today?

Mastering the distribution side of the business remains a top priority for pharma companies, reflecting the focus of achieving high product availability at a reasonable cost.Also related is theimportance of improving the forecast accuracy, a key driver in increasing service levels.

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Patrick LemoineVice President, Product Marketing, E2open

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1 2 3 4 5

23% 20% 30% 21% 6%

Innovating the distributionchannel strategy to remaincompetitive

18% 39% 27% 13% 3%

Managing the supply chainfollowing a merger oracquisition

12% 26% 41% 17% 4%

Balancing cost managementversus providing excellentcustomer service

12% 43% 29% 11% 5%

Improving quality and trace-ability across your entirenetwork

10% 28% 44% 17% 1%

Managing the supply chainfor a rapidly changingportfolio

20% 21% 40% 17% 2%

Increasing performanceof new product introductions

23% 39% 31% 6% 1%

Increasing forecast accuracy


More than 50% have launched direct-to-patient distribution channels, or are set to launch them in the next yearHow far along is your company in implementing direct-to-patient distribution channels?

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Direct to patient distribution channels have the probability of increasing complexity in the supply chain and therefore also increasing costs. Working with healthcare specialist logistics experts can improve the understanding of the trade-offs between different models and options, and can ensure your distribution channels deliver on your objectives.

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Mark JamesVice President, OM Movianto Europe

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32%We will be implementing it inthe next 1-3 years

5%We are actively discussing itbut there are no plans toimplement just yet

26%Fully operational – we havebeen distributing by direct-to-patient channels forover a year

37%Deployed – we started distributionin the last 12 months


Supply chains operating from the cloudTo what extent is your company driving change in the supply chain using these technological innovations?

Not surprisingly, cloud computing in the supply chain function is already a fact for the majority of pharma companies. They are attracted by the IT cost savings but also highly value the rapid deployment and therefore faster innovation that cloud solutions enable.

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0% 22% 40% 30% 8%

Digital Technology(e.g. mobile apps)

No plans to implement

Maybe in future, but not now

We’re actively discussing it

We’re in the process of implementing it

It’s already working for us

0% 1% 3% 39% 57%

Cloud Computing

0% 1% 22% 39% 38%

Supply Chain Data Analytics

1% 2% 33% 41% 23%

Customer Data Analytics


Supply Chain set to have a much greater impact on the bottom lineWhich one of the following changes is the most likely to occurin 10 years’ time?

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Supply chain management continues to be seen as a key driver of the bottom line – increasingly so. It is a reflection of the need for pharma companies to excel at the operational side of the business.

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30%Direct to hospital and pharmacy distributionwill be significantly more common

3%Supply chains will befar more segmentedand specialized accordingto product

25%Supply chain will have amuch greater influenceon market access

42%Supply chain will have a muchmore significant impact on thebottom line of the company

Part Two: Investments and Actions

Building better supply chains should be a collaborative activityDo you think your company should collaborate with others to achieve a more effective supply chain?

Collaboration should not just be with other pharma companies. Specialist healthcare logistics providers can bring industry wide expertise and knowledge on to how to make your supply chain more effective.

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Mark JamesVice President, OM Movianto Europe

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33%Possibly, but it depends on the situation

3%No – supply chain shouldbe used to differentiatefrom competitors

64%Yes absolutely – it’s importantto work with other pharmacompanies to develop a moreeffective supply chain



Streamlining the transportation service provider roster is a major priorityWhat 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 remains fragmented, with the top spot this year moving to consolidating/finding new transportation service providers.

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15%Investing in active solutions

27%Reassessing and changing strategyfor freight – sea vs. air. vs. truck vs. rail

3%Investing inpassive solutions

15%Risk assessing and adaptingtransportation routes

40%Consolidating or findingnew transportationservice providers


Digitalization is a major priority for Supply ChainIs ‘digitalization’ a priority for you?

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There is a significant need and shift in the market to quicker speed of business through mobile apps. As a result of this, mobile apps are set to become an important feature for transportation providers who seek to better serve their customers.

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Mary TussingManager, Global Business Development, United TempControl

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10%No – mobile apps & devices will notbe used in supply chain – data analyticscould be important though

37%Yes, somewhat – data analytics andan information-enriched end-to-endsupply chain is important

14%Yes very much so - the digitalpatient, wearables, smartpackaging and the smart pill,mobile apps & devices and dataanalytics will be impacting pharmasupply chain imminently, if notright now

39%Yes – mobile apps & devices,data analytics are all extremelyimportant to the supply chain


The IoT and Industry 4.0 expected to shake things up in the next 10 yearsWhich of these disruptive technologies will have the biggest impact on supply chain over the next 5 years?

Industry 4.0 and the Internet of Things aretechnologies that have immediate applications in the supply chain space and are therefore seen as key disrupting technologies. It is interesting to note that blockchain is alsoseen as important, more than big data.

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2.073D Printing

2.92Artificial Intelligence

2.99Wearables, mobile apps for patients& care professionals

4.19Big Data

4.29Blockchain Technology

4.54Industry 4.0 and the Internet of Things


Only a quarter are ready to comply with the EU’s Falsified Medicines DirectiveHow prepared is your company for the global serialization requirements outlined in the EU Falsified Medicines Directive?

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With respect to the serialization requirements, companies have made significant progress but only one out of four is ready today. One complication is how to get quality and traceability data when part of the manufacturing is outsourced. This is why companies have turned to E2open to gain visibility into their CMO.

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“15%Not very prepared, it would be goodto find out how other companies aremanaging this

59%Somewhat prepared, but we are stilldeveloping our processes and technologies

26%Very prepared – we have all of our processes andtechnologies in place

Part Three: Supply Chain Visibility

Supply chain visibility is very good for half of respondentsHow would you rate your visibility across your entire supply network?

Supply chain visibility is no longer a vision, it is a fact for a majority of pharma companies today.

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Very Good

Poor

Good

Fair

14%

Excellent

49%

29%

8%

0%



Visibility is broadly good, but is better downstream than upTo what degree do you have visibility into the following tiers of your supply chain?

(Please indicate the degree from 0 = none to 4 = clear view)

Downstream visibility to the DCs and all the way to the customers is the area in supply chain visibility that still somewhat challenging.

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0 1 2 3 4

0% 3% 27% 48% 22%

Raw material / API suppliers

0% 6% 18% 42% 34%

CMOs / Packaging

0% 8% 28% 36% 28%

DCs

0% 9% 30% 37% 24%

Distributors/customers


Being responsive to changes in global demand is a major priorityWhat are your key priorities when implementing end-to-end supply chain visibility?

(Please rank each 1 - 5. #1 is the biggest challenge)

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Transparency and a willingness to collaborate with allstakeholders is an absolutely essential component of success.We truly believe that through partnerships andopen communications,we all win.

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1 2 3 4 5

30% 27% 26% 16% 1%

Being more responsive todemand changes

14% 29% 40% 14% 3%

Improving quality andtraceability

12% 23% 40% 19% 6%

Building better relationshipswith suppliers

10% 31% 34% 19% 6%

Better managing CMOs

10% 39% 39% 10% 2%

Enabling control tower-typecapabilities

17% 28% 39% 12% 4%

Being more responsive tosupply changes

23% 21% 33% 17% 6%

Building better relationshipswith customers

Mary TussingManager, Global Business Development, United TempControl

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About: E2openFounded in 2000, E2open provides the largest and most comprehensive Supply Chain Operating Network, including a broad suite of collaborative supply chain solutions. Leading global enterprises, including pharma and biotech companies, rely on E2open to provide greater end-to-end visibility, more accurate data and insights, and real-time business process orchestration across complex, multi-enterprise trading partner networks.

For more information, visit: www.e2open.com.

About: OM MoviantoAs part of US-based Owens & Minor Inc., we are a healthcare dedicated pan-European network operating in over 15 European countries with a diverse product and service offering.

OUR Vision is to connect the world’s leading life-science companies to the point of care to enable better patient outcomes.

OUR Mission is to remain fully focused on delivering healthcare services and solutions. We seek to understand the volume and technical demands of our clients product portfolio to ensure we enable flexible and customised patient centric solutions, through a pan European platform that offers consistency, reliability and resilience of service underpinned by a total focus on our quality management systems.

For more information, visit: www. movianto.com.

About: United Cargo TempControlTempControl is United Cargo’s premium service for pharmaceuticals and other commodities requiring temperature-sensitive transport. TempControl’s customer-focused approach features both standard and customized SOPs and a network of 67 certified handling locations worldwide. Temp Control’s volume of business, along with our investment in facilities, teams and product development, continues to grow each year. United Cargo delivers shipping solutions via the cargo capacity of world’s most comprehensive route network – 4,500 flights a day to 339 airports operated by United Airlines and United Express. United operates a mainline fleet of more than 720 aircraft, including 170 wide-bodies, on which United Cargo carried 1.44 billion pounds of cargo worldwide in 2016.

For more information, visit: www.unitedcargo.com.

About: WBR DigitalAt WBR Digital we design and execute bespoke content marketing campaigns, delivering insightful content to our high-level audience all year round.

We are a team of marketers, researchers and writers with a passion for content with a creative twist. From research-based whitepapers focused on your priorities, to benchmarking reports, infographics and webinars, we can help you to inform and educate your readers and reach your marketing goals at the same time.

Contact: Chamatkar Sandhu, Digital Sales Director, +44 (0)20 7368 9383, [email protected].

Documents

The Supply Chain of the Future A LogiPharma Reportmovianto.com/wp-content/uploads/wbr-logipharma-report-01.pdf · 2019-10-21 · The Supply Chain of the Future A LogiPharma Report