Archive for the ‘Pharma and life sciences supply chain management’ Category

A perfect supply chain?

Published February 17th, 2015 by Matt Benson 0 Comments

Dabbawala supply chainIf your 3PL supply chain problem was to deliver 400,000 items daily from supplier to customer and your on-time in full metric was a six-sigma target standard of 1 failure per million, how would you do it?

What If I was to also constrain the resources you had at your disposal and said you only had 5000 transportation vehicles and your delivery slot was just 1 hour and that your delivery window was always 12pm until 1pm? What if I was then to say that you had no technology at your disposal to manage it and your only transportation methods were bicycles, trains and feet and you had to do it on a budget of 33 cents per delivery?

Well, that’s what the Dabbawalas in India have been doing in Mumbai for over 100 years – delivering meals direct to workers and school desks from the family home with an OTIF of 99.99 %. They don’t use technology but what they do have is a tried and trusted set of highly efficient robust procedures that govern how they manage their work. It’s a methodology that has been established and passed down from generation to generation and has stood the test of time.

So, why don’t organisations with similar problems just invest time in improving their working procedures? Why do we even need technology? Well, the answer in reality is that we really do need both – not all of our problems are only 3PL issues with supply chains having such stable demand signals – same item, same quantity, to the same customer, pretty much every day. Not all of our supply chains have a zero inventory, stable sub-contracted supply – it’s a relatively quick production process to make an Indian meal (2-3 hours), freshly cooked every day often using Tandoor ovens. In addition, the majority of our distribution networks are geographically wider and much more complex.

Away from Mumbai we’re at the PIMS conference this week in London discussing Pharmaceutical supply chain problems with some key players in the market. The common themes we are hearing are:

At Kinaxis, we’re supporting all of the above by enabling multiple disconnected, multi-platform data sources to come together in a single data model. This gives our customers a single view of the entire organizational data model. This means that cross-organisation planning can take place, active ingredient production can support manufacturing, filling and packing operations at other sites, component items and raw material suppliers can be integrated into the single model and collaboration between supplier and customer can take place with a single view of the plan. Because we get visibility, because it’s real time, it removes uncertainty. Removing uncertainty and gaining confidence removes buffers – specifically it removes inventory and lowers safety stock targets – Kinaxis MEIO application simultaneously calculates what is needed at each echelon in the supply chain network and takes cost out, freeing up huge amounts of working capital.

If we then couple those primary short to medium term cost reducing objectives with establishing a level of planning for the future, we can begin to shape the organization to best fit the known environment. In other words, we can establish a robust Sales and Operations Planning process, supported by accurate data, a demand model supported by forecasting algorithms and a supply view that includes capacity balanced resources and key supplier delivery information. The result, a Supply and Demand balanced picture that allows you to make resourcing or promotional decisions to assist in that balancing process and those decisions can be tested using Kinaxis RapidResponse scenario capability. Run unlimited ‘What-if’ analysis, compare those results with other scenarios, share scenarios with colleagues, make accurate decisions and commit the changes to the plan.

Would Kinaxis work with Dabbawalas? Possibly. Do they need it? Probably not.

Do you have a Dabawalla process and a simple supply chain? If you don’t, are you looking to improve your decision making ability within your planning processes? Please keep the conversation going in the comments below.

Posted in General News, Pharma and life sciences supply chain management, Supply Chain Events, Supply chain management


A Brief Report on the Pharmaceutical Innovation in Manufacturing Summit

Published February 12th, 2015 by Hans Velthuizen 0 Comments

This week I attended the 5th Annual Pharmaceutical Innovation in Manufacturing Summit near Heathrow. Although the conference was situated in the Edwardian style Radisson hotel neatly decorated with Persian rugs, brass-railed staircases and chandeliers, the location stood in sharp contrast with the innovative character of the Summit.

The objective of the summit was to provide an open forum for highly insightful presentations that span a broad range of topics critical to the biologics field. It was a two-day gathering dedicated to cutting edge technology, innovation and strategy across the entire small molecule & biopharmaceutical manufacturing process.

As good as the sessions were, I always find the networking opportunities the most useful at these kinds of summits. There was plenty of room during dinners and lunch breaks to discuss new ideas with industry peers. Seeing a lot of familiar faces you realize that the pharmaceutical supply chain is a small world.

Distinctive of this summit was the wide variety of topics and themes that passed these two days. Topics that were discussed ranged from strategic supply chain challenges to operational packaging and labeling processes and techniques. While there are undoubtedly some topics relevant for each participant, it seemed very well possible this broad setup of event missed its goal.

Kinaxis was present with a booth and Laura Dionne, Senior Director, Worldwide Operations Planning at TriQuint gave a well-received presentation titled ‘A Healthy Dose of Chips: Supply Chain Lessons for Life Sciences’. In this presentation Laura discussed the similarities between pharmaceutical and Semiconductor supply chains and also the solutions that can be applied for addressing similar challenges.

triquint supply chain journey

 

Don’t worry if you missed the event, the presentation slides from Laura are available and can be viewed on slideshare.

Posted in General News, Pharma and life sciences supply chain management, Supply chain collaboration, Supply Chain Events, Supply chain management


A Healthy Dose of Chips: Supply Chain Lessons for Life Sciences at the 2015 Pharmaceutical Innovation in Manufacturing Summit

Published February 9th, 2015 by Melissa Clow 0 Comments

A quick post to let our readers know that we’ll be at the 2015 Pharmaceutical Innovation in Manufacturing Summit (PIMS). This year’s event will be held at the Radisson Blu Edwardian Hotel, London, February 10-11, 2015.

If you plan to attend the conference, join Laura Dionne, Senior Director, Worldwide Operations Planning, TriQuint as she presents Laura DionneA Healthy Dose of Chips: Supply Chain Lessons for Life Sciences from a High Tech Veteran’ on Tuesday, February 10th at 2:15pm.

Session Details

What can a lifelong Semiconductor Supply Chain expert have to say about Pharmaceuticals? A surprising amount it seems! In this presentation we will explore the similarities between these supply chains and also the solutions that can be applied for addressing these challenges.

Laura Dionne, a 33 year Semiconductor Veteran and supply chain change agent will discuss the commonalities including the challenge of planning a wealth of products that can be manufactured from a singular base material, how quality creates an underlying tension that drives customer fulfillment and margins, and also how inventory strategy can make the difference between profit and loss. Cross over of experts between industries is not anything new to the supply chain, but few would recognize what can be learned about the two industries that have shaped the global supply chain… Pharmaceuticals and Semiconductors.

We’ll be posting Laura’s presentation deck along with a recap of the conference, so stay tuned!

Happy Monday all!

Posted in General News, Pharma and life sciences supply chain management, Sales and operations planning (S&OP), Supply Chain Events


Kinexions, a tale of growth and potential

Published December 9th, 2014 by Trevor Miles @milesahead 0 Comments

building-kinexions-trevor-milesI’m on my way back from Tokyo where I attended our user conference, Kinexions Tokyo, in Japan, just 5 weeks after our Kinexions North America user conference in San Diego. As a side note, I had a stunning view of Mount Fuji from my hotel room on two of the three days I was in Tokyo. I have become so lazy about carrying a camera with me that I could only capture this photo with my smart phone.

If attendance at both conferences is anything to go by, 2015 is going to be even busier than 2014. In both cases we had about 50% increase in attendance over last year. In both cases we had the largest contingent of prospects ever and the largest contingent of partners ever. We also had the most customer presentations with 11 case studies in total including:

• ASICS
• Avaya
• Buffalo Technologies
• Dow AgroSciences
• Keysights
• Schneider Electric
• TE Connectivity
• Qualcomm

Kinexions `14 graphic recording

Kinexions graphic recording

The diagram above captures the essential elements of the San Diego conference in which you can see how important the customer case stories were to the overall conference. What struck me most is the diversity of the industries and the breadth of supply chain maturity represented. Before I comment further on specific stories, let me state that while the destination reached is important, it is the distance traveled that most impresses me. In other words, while I love the stories of the customers that are doing amazing stuff, it is the one that changed the most that really impresses me. For example, you only have to look at the Gartner Top 25 to see that Apple has been number one for the past 5 or so years. Yawn. I’m always looking for the companies that have started low in the ranking and are making rapid progress up the ranking. Change is hard, but change is necessary. It is easy to follow, and a lot more difficult to lead. Or, as Angel Mendez of Cisco likes to say, yesterday’s stretch goal is today’s benchmark.

And our customers are leading the charge in the transformation of supply chain, which is captured nicely in our tagline of ‘Know Sooner, Act Faster’. At the conference, that transformation was captured best by a pharmaceutical manufacturer and Schneider Electric. Their industries couldn’t be more different and their product portfolios and supply chain structures couldn’t be more different. But both were faced with deteriorating market positions a few years back that have necessitated huge transformations in their organizations, with supply chain being at the heart of the change. The pharmaceutical manufacturer was facing a massive patent cliff with many small molecule blockbuster drugs reaching patent expiry and have now made a radical shift into biotechnology. Schneider Electric has grown by acquisition and was faced with shrinking margins because of inefficient and poorly thought out supply chain operating models. Both companies needed to do something radically different. They both chose Kinaxis as the enabler of that change. Both realized that they could not transform their organizations by following the 1990’s supply chain mental model of functional optimization. You can’t cross the Grand Canyon in 10 min by walking. You need a helicopter for that.

Schneider said it best: The speed at which information flows across the supply chain is more important than what gets done with the information at each node in the chain. Now, to be honest, in my opinion they are expressing the area in which they had to make the largest mental leap, the greatest transformation. I would reword Schneider’s statement to state that the speed of information flow is just as important as what gets done in each functional box. In fact, I am not much of a fan of simple visibility solutions. What really matters is the speed of decision making, and that takes more than transmitting information quickly or being able to calculate quickly. You need both. This is the ‘Know Sooner’ part. And you need a third element too. You need to be able to bring people together as a team to make trade-off decisions quickly, as well as capture all the assumptions and provide a full audit trail of the decisions made. This is the ‘Act Faster’ part.

To be honest, our customers typically find it easier to describe the barriers to change and the inefficiencies of their previous operating models, than the new capabilities adopted. And this is true for most companies, and is where Avaya comes into the story, and to some extent Buffalo Technologies. Avaya have turned the value pyramid on its ear to focus on the real value generation of prediction/action/innovation. Dick Ling, the ‘father’ of S&OP said it best: It is far better to be approximately right than precisely wrong. Your data is never going to be 100% correct. You processes are always going to be in flux. Move on. Focus on how people will use the information you have to make a decision that will drive the company forward. At some point speed is quality. Plan. Monitor. Respond. In days, not months. By focusing on speed of decision, and quality of decision, Avaya has posted some truly amazing financial and operational gains. Obviously it is up to Avaya to share these gains publicly.

Avaya Kinaxis supply chain conference slides

Josh Greenbaum wrote a great summary of his impressions of the Kinexions conference in San Diego, specifically the unusually high number of women in attendance. Josh makes the point that it is perhaps our focus on supplier collaboration that draws more women to Kinaxis. If that is true, it is a most welcomed side benefit. To be honest I do think women are better at driving consensus and making compromises through trade-offs. Whether this is true because of nature or nurture is far beyond the scope of this discussion. What is important is the realization that the speed and manner in which people reach agreement across competing objectives is really important, and that it is a consensual process. If women are better at this, then all the more reason to bring them into senior leadership roles to drive change. We need the change. And we need more women in supply chain.

In wrapping up, let me give a quick shout-out to Watanabe-san of Abeam Consulting who presented the keynote in Japan. I ran a panel in San Diego discussing the technology innovations that will drive change in supply chain management. This was theme of Watanabe-san’s presentation, but he did a much better job of giving concrete examples of how these technology changes have already made changes to supply chains. My only (admittedly selfish) wish was that he has used English slides. I could only follow along on the simultaneous translation. For example, he used IKEA as an example of crowd sourcing in supply chain. After all, they are relying on the ‘crowd’ to do the final assembly, which has a radical impact on their cost to manufacture, distribute, and sell their products. What I found interesting was the manner in which he made new terms familiar and less alien, and therefore easier to accept and adopt.

So, all in all, a really positive set of conferences providing a great launch pad for 2015.

 

Posted in General News, Milesahead, Miscellanea, Pharma and life sciences supply chain management, Supply Chain Events


On-demand Webcast: Continuous S&OP for Life Sciences – Breaking the Mold

Published December 5th, 2014 by Melissa Clow 0 Comments

Today’s Friday post is to let you know that we have posted the on-demand version of last week’s webcast on “Continuous S&OP for Life Sciences – Breaking the Mold” (registration required). In this webcast, learn about the unique S&OP challenges for Life Sciences companies, the importance of changing S&OP mindsets, and how to break the S&OP mold from both a process and technology perspective.

Webcast: Continuous S&OP for Life Sciences - Breaking the Mold

 

You can also view the slides that we’ve posted to slideshare:

 

Webcast Abstract
Trevor MilesView the recording of Trevor Miles, VP of Thought Leadership, Kinaxis, as he presents on the following topic.

Business realities have changed so tremendously in the last thirty years that the traditional ‘plan then execute’ S&OP model has become highly ineffective. It is unable to facilitate decision making amid acutely complex supply chain networks, or within the time horizons required. This is particularly true for Life Sciences companies faced with varying regulatory requirements and aging product portfolios.

In response, there is an emerging recognition that operational information must be accessed and evaluated on a continuous basis, whereby decisions that may have once only been considered as part of a scheduled S&OP process can be made as needed throughout the cycle. In this capacity, process execution evolves into operational orchestration.

Watch the recording >>

 

Posted in General News, Milesahead, Pharma and life sciences supply chain management, Sales and operations planning (S&OP), Supply Chain Events, Supply chain management


Kinaxis on the road: 12th American Supply Chain & Logistics Summit

Published November 27th, 2014 by Melissa Clow 1 Comment
SCL Summit

The American Supply Chain and Logistics Summit, now in its 12th year, brings together senior executives from across the Supply Chain and Logistics fields to enjoy an unbeatable mix of networking, expert case studies, interactive debates and master classes over three exceptional days.

Join Benji Green, Director of Global Sales, Operations, Supply and Inventory Planning at Avaya for the Kinaxis supply chain optimization workshop on December 9th. Register using the link below to receive 25% off your registration.

December 8-10, 2014
Dallas, Texas

Learn More and Register for the Summit

Schedule Meeting

 

Posted in General News, Pharma and life sciences supply chain management, Sales and operations planning (S&OP), Supply chain collaboration, Supply Chain Events, Supply chain management


Mentoring, Sponsorship and Quotas: What are their relative merits in bringing more women into supply chain management?

Published May 27th, 2014 by Melissa Clow 0 Comments

Next week, June 5, 2014, we are excited to host a webcast on women in supply chain management.

We have a fantastic panel of accomplished female supply chain practitioners as well as industry expert Lora Cecere serving as the moderator. Register for the webcast to hear them discuss the thorny issues of mentoring, sponsorship, and quotas as mechanisms to get more women into supply chain, and the relative merits and drawbacks of these approaches.

Mentoring, Sponsorship, & Quotas: What are their relative merits in bringing more women into supply chain management?

Event Details:
Mentoring, Sponsorship, & Quotas: What are their relative merits in bringing more women into supply chain management?
Date: Thursday, June 5, 2014
Time: 2:00 PM to 3:00 PM ET

There is a consensus that since women constitute over half of the workforce but just 10% of top supply chain executive positions in Fortune Global 500 companies that something needs to be done to address this imbalance. While a great deal of attention gets placed on the ‘glass ceiling’ concept, there are a lot of women who face barriers and discrimination at mid and entry level positions too.  There is a clear social responsibility need and this panel will focus on the practical advantages to having more women in supply chain including:

  • Do women and men make decisions differently? If so, why does this matter to supply chain?
  • Has supply chain become more relevant to women as a career option?
  • What does a career path look like for women in supply chain?

Reserve your spot!

P A N E L I S T S :
Verda Blythe, Director, Grainger Center for Supply Chain Management, Wisconsin School of Business
Laura Dionne, Director, Worldwide Operations Planning, TriQuint
Elisabeth Kaszas, Director, Supply Chain, Amgen Inc.
Shellie Molina, VP, Global Supply Chain, First Solar

M O D E R A T O R :
Lora Cecere, Founder, Supply Chain Insights

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Posted in General News, Pharma and life sciences supply chain management, Supply chain collaboration, Supply chain management


7 Life Sciences Supply Chain Processes That Require an Integrated Approach

Published April 7th, 2014 by Trevor Miles @milesahead 0 Comments

The emerging or intensifying industry dynamics that I discussed in an earlier blog post, along with significant shifts in strategy, are having a direct and material impact on the way Life Sciences supply chains must operate. The compounded effect of a host of complexity drivers is creating the need for supply chain transformation. By satisfying the following seven supply chain processes in an integrated manner, Life Sciences teams will be better equipped for success in today’s new, complex world.

  1. Collaborative launch management – clinical, regulatory and commercial
  2. Jurisdictional control to respect regulatory needs during planning
  3. Consensus demand planning across affiliates and countries
  4. Risk evaluation and recovery to deal with shortages and FDA shutdowns
  5. Shortage analysis and reporting for FDASIA compliance
  6. Supply and capacity planning to balance demand across regions
  7. Expiry management to balance long supply lead times and shifting demand

Let’s take a look at each of these in more detail.

Coordinated Launches

The effective launch of a new product is critically important in any industry, but it is of particular importance in the Life Sciences industry given the long time it takes to bring a new drug to market from discovery through clinical trials and commercialization, with regulatory oversight and conformance throughout the process. When the ‘long tail’ trend is coupled with shorter patent protection, the margin and market captured during the early launch period will be crucial to the recovery of the R&D investment, and thus the pressure to streamline and coordinate clinical trials and the regulatory process with the commercial launch has become intense.

Revenue Trends throughout the Product Life Cycle

phamacutical supply chain graph

Jurisdictional Control

In addition, mandates by regulatory bodies require jurisdictional control of demand satisfaction to account for third country sourcing, validation, and shelf life requirements, amongst others. This requires sophisticated attribute based planning to link demand characteristics to supply characteristics while simultaneously analyzing and reducing expiry risk, especially when inventory postponement strategies are used.

Consensus Demand Planning

For tax, legal, and regulatory reasons, many Life Sciences companies establish semi-independent sales affiliates or subsidiaries in some jurisdictions or sell through third parties. Creating a consensus demand plan across all the affiliates and subsidiaries is not a trivial task. Often, each demand region will forecast in different units (doses, standard packs, grams of API, etc.); almost always in different currencies; at a different cadence (quarterly, monthly, weekly); and over different time horizons. However, manufacturing needs to create a single forecast using a consistent unit of measure so that they can net the demand against available supply and determine future manufacturing capacity needs. To make matters worse, the affiliates are often less than fully transparent about their on-hand inventory.

Risk Evaluation and Recovery (including Shortage Analysis and Reporting)

Current technical architectures do not provide the capabilities needed to address new requirements under FDASIA ̶ reporting obligations for drug shortage issues and more active inspection of production facilities for instance. Information flow is typically limited to EDI exchanges with little or no ability to understand, for example, the impact of an API supply de-commit on future treatment —drug or device— availability in a regulatory region. To do this, Life Sciences companies will require much greater visibility and what-if scenario capabilities to both inspect and affect the global supply chain across Third Party Operators and into the supply base.

Tender Analysis and Management

Many manufacturers lack the required process standardization in manufacturing, inventory and expiry management, and other core business disciplines to make the required trade-offs during tender analysis between demand satisfaction, expiry risk, and constrained capacity utilization, ultimately leading to effective supply and capacity planning to balance demand across regions. Collaboration across the players in the supply chain is often insufficient and inefficient to achieve these tradeoffs. Given the harsh penalties imposed for non-conformance, being able to make the trade-offs to maintain profitability span the life cycle of the tender, not simply the tender acquisition phase.

Expiry Management

Streamlining manufacturing and distribution processes in order to satisfy demand while reducing unit cost is therefore becoming increasingly important in order to maintain profitability, reduce inventories and enhancing competitiveness within the industry. This is especially true given the long manufacturing lead times, often as long as 12-18 months in bio-pharmaceuticals, which lead to the need for expiry risk and stop sell analysis capabilities to balance effective demand satisfaction with efficient capacity utilization.

A New Technology Paradigm for a New World

phamacutical supply chain graph #5Legacy demand planning and supply chain planning systems were not designed for today’s complexities, and consequently don’t meet the many challenges that have emerged. As a result, Life Sciences companies are adopting process improvements and new technologies targeted at removing business “silos,” improving collaboration, and increasing productivity.

For a true breakthrough, you need an integrated solution. People must be able to leverage a single system with one set of data, supported by comprehensive analysis and decision-making capabilities, no matter what the process or the problem.

To keep a finger on the pulse of the supply chain, today’s solutions must:

  • Embrace the reality that today’s supply chains are multi-enterprise in nature and, thus, must provide comprehensive visibility into the extended supply chain to regain an understanding of the manufacturing commitments and inventory positions throughout the supply network. Visibility is an essential pre-requisite for effective orchestration of the business.
  • Proactively bring to light major variances to plan, identifying not only specific events, but also identifying and quantifying the consequences to customer service, revenue, margin, and a number of other financial and operations metrics, and thereby flagging those that could do most harm to the business.
  • Arm decision-makers with scenario simulation capabilities for risk trade-off and response, to model and compare situations quickly and appropriately to ensure a profitable response is put into action. And it must facilitate and incorporate human judgment, since many of the decision requirements are extremely difficult, if not impossible, to capture in a mathematical model — the foundation of an optimization system.
  • Foster collaboration for team-based decisions that tap the collective insight of the right people in the organization — those that understand the potential impact of any event and proposed action alternatives.

 

Posted in Best practices, Demand management, Milesahead, Pharma and life sciences supply chain management, Supply chain management