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The Supply Chain of the Future a Logipharma Report The Supply Chain of the Future A LogiPharma Report logipharmaeu.wbresearch.com The Supply Chain of the Future 01 A LogiPharma Report “ 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. “ Arie Moruanx, Global Surgery Planning Excellence Director Contents Introduction 02 Getting ahead of the game in supply chain 03 United Cargo 04 OM Movianto 05 Part 1: Challenges and Opportunities 06 Part 2: Investments and Actions 12 Part 3: Supply Chain Visibility 18 About E2open 22 About OM Movianto 22 About United Cargo TempControl 22 About WBR Digital 22 The Supply Chain of the Future A 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 Lemoine Mark James Mary Tussing Vice President Vice President Manager Product Marketing OM Movianto Global Business E2open Europe Development United TempControl The Supply Chain of the Future 03 A LogiPharma Report Getting ahead of the game in supply chain Patrick Lemoine, VP Product Marketing, E2open The pharmaceutical industry recognizing that this new setup When companies deploy such has been one of the best- requires advanced solutions. approaches, the benefits are performing industries of the past substantial: decades with pharma companies Leading pharma companies are, excelling at many disciplines to a large extent, leveraging the l Up-to-date, supply chain – research and development, experience of other industries visibility – “one version of the manufacturing, sales and while taking into account the truth” shared across all marketing – while maintaining specifics of the pharma industry. partners of the extended the highest safety and quality The new approach is to run such supply chain standards. Today the pharma a multi-enterprise supply chain l Full quality control of CMOs industry is going through major through a supply chain operating changes: the rise of generics network such as that provided l as required for traceability and the resulting competitive by E2open. The foundation is a and serialization intensity, an ever-growing business network that connects product portfolio, demanding all partners in real-time for l Higher on-shelf availability, customers and retailers, and true end-to-end visibility and generally with lower inventories new regulatory requirements. collaboration. Such a network also allows companies to have l Through smarter channel The supply chain function has a deep visibility into the operations allocations, better margins key role to play to help address of their contract manufacturers and also ultimately higher the new challenges. In particular, to capture quality as well as batch market share increasingly global and information – so companies can outsourced supply chains bring trace quality issues even if they The early adopters in the pharma additional complexity and many outsource production. Once this industry are already capturing pharma companies struggle platform is in place, dedicated these benefits, putting themselves to run increasingly “virtual” supply chain solutions provide the ahead of their peers. supply chains. Today’s virtual required insights and decision- supply chains require a much support to supply chain teams. higher degree of coordination and alignment across all supply A key area that has emerged chain partners and activities. is the importance of better Achieving better supply chain managing the downstream part visibility and collaboration across of the supply chain, where new the entire supply chain is not technologies like demand sensing something ERP systems or – first adopted by consumer goods traditional business applications companies – can dramatically can solve because they only focus help pharmaceutical companies on what’s happening inside a increase their on-shelf availability, company’s four walls. As a result, in hospitals or at retail locations. pharmaceutical companies are SM right time, friendly right temp TempControl’s specialized processes safeguard your valuable pharmaceutical shipments from start to finish. ©2017 United Airlines, Inc. All rights reserved. reserved. Inc. All rights Airlines, ©2017 United unitedcargo.com 26954_Ad_LogiPharma_TC_v2b.indd 1 2/2/17 10:55 AM The Supply Chain of the Future 05 A LogiPharma Report Healthcare Dedicated Solutions Over recent years there has for the pharmaceutical industry OM Movianto’s international been significant polarization and has the capability to clients benefit from a pan- of pharmaceutical products handle the most demanding European network, a broad range requiring increasingly complex of specialised product order of healthcare logistics services, and flexible supply chain management, storage, handling the know-how of the local solutions. From basic regulatory and distribution requirements. markets and uncompromising compliance and temperature quality standards like ISO 9001 control through to special OM Movianto is part of US-based and ISO 13485. The company has handling, monitoring and security O&M Inc., headquartered in expanded rapidly over the last few arrangements for sensitive and Richmond, Virginia. With a diverse years. More than 1,900 teammates specialised products together product and service offering, are managing over 275,000 pallet with diverse final mile distribution O&M Inc. serves hospitals, locations spread over a network of requirements, the pharmaceutical integrated healthcare systems, 20 wholly owned warehouses in 11 industry faces increasing supply group purchasing organisations, European countries. chain challenges. healthcare supplies and the federal government. Today OM Movianto operates As a healthcare dedicated in three regions in Europe solution provider OM Movianto OM Movianto is dedicated to being with capabilities in: West offers strategic supply chain the preferred European healthcare (United Kingdom and Eire), management to overcome these solutions partner with best-in-class North (Belgium, Netherlands, hurdles with best- in-class quality for the pharmaceutical, Germany, Switzerland, Denmark, logistic solutions, adhering biotech, medical device and Nordics, Poland, Czech Republic to highest quality standards, diagnostic industries. We offer and Slovakia), and South in excess of basic GDP and outsourcing services along the (France, Spain). GMP regulation, designed to supply chain such as warehousing, maintain the brand promise transportation, active temperature of the manufacturer to their control logistics as well as Value customer or patient. OM Added Services; order to cash Movianto continues to position and sourcing. itself as an essential partner Part One: Challenges and Opportunities The Supply Chain of the Future 07 A LogiPharma Report Supply Chain eyes Asia Pac for market access capability Which region do you think provides supply chain with the greatest opportunity to influence the market access capability of your company? 16% Latin/South America % % 15 16 Rest of Asia Russia & CIS 18% Eastern Europe % % 25 3 Asia Pacific Middle East & North Africa 7% Africa The Supply Chain of the Future A LogiPharma Report 08 Increasing forecast accuracy is a “ major challenge Mastering the What are the biggest challenges you face today? distribution side of the business remains Innovating the distribution channel strategy to remain a top priority for competitive 23% 20% 30% 21% 6% pharma companies, reflecting the focus Increasing forecast accuracy of achieving high 23% 39% 31% 6% 1% product availability at a reasonable cost. Increasing performance of new product introductions Also related is the 20% 21% 40% 17% 2% importance of improving the forecast Managing the supply chain following a merger or acquisition accuracy, a key driver 18% 39% 27% 13% 3% in increasing service Balancing cost management levels. “ versus providing excellent customer service Patrick Lemoine Vice President, Product Marketing, E2open 12% 26% 41% 17% 4% Improving quality and trace- ability across your entire network 12% 43% 29% 11% 5% Managing the supply chain for a rapidly changing portfolio 10% 28% 44% 17% 1% 1 2 3 4 5 The Supply Chain of the Future 09 A LogiPharma Report “ More than 50% have launched direct- Direct to patient to-patient distribution channels, or distribution channels are set to launch them in the next year have the probability
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