The Supply Chain of the Future A LogiPharma Report

Transcription

1 The Supply Chain of the Future A LogiPharma Report logipharmaeu.wbresearch.com

2 01 The Supply Chain of the Future 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 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

3 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 Vice President Product Marketing E2open Mark James Vice President OM Movianto Europe Mary Tussing Manager Global Business Development United TempControl

4 03 The Supply Chain of the Future A LogiPharma Report Getting ahead of the game in supply chain Patrick Lemoine, VP Product Marketing, E2open The pharmaceutical industry has been one of the bestperforming 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 decisionsupport 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.

5 SM right time, right temp friendly 2017 United Airlines, Inc. All rights reserved. TempControl s specialized processes safeguard your valuable pharmaceutical shipments from start to finish. unitedcargo.com

6 05 The Supply Chain of the Future A LogiPharma Report 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-class quality for the pharmaceutical, biotech, medical device and diagnostic industries. We offer outsourcing services along the supply 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 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).

7 Part One: Challenges and Opportunities

8 07 The Supply Chain of the Future 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 16 % Russia & CIS 15 % Rest of Asia 18 % Eastern Europe 3 % Middle East & North Africa 7 % Africa 25 % Asia Pacific

9 The Supply Chain of the Future A LogiPharma Report 08 Increasing forecast accuracy is a major challenge What are the biggest challenges you face today? Innovating the distribution channel strategy to remain competitive Increasing forecast accuracy Increasing performance of new product introductions Managing the supply chain following a merger or acquisition Balancing cost management versus providing excellent customer service 23 % 20 % 30 % 21 % 6 % 23 % 39 % 31 % 6 % 1 % 20 % 21 % 40 % 17 % 2 % 18 % 39 % 27 % 13 % 3 % 12 % 26 % 41 % 17 % 4 % 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 the importance of improving the forecast accuracy, a key driver in increasing service levels. Patrick Lemoine Vice President, Product Marketing, E2open Improving quality and traceability across your entire network Managing the supply chain for a rapidly changing portfolio 12 % 43 % 29 % 11 % 5 % 10 % 28 % 44 % 17 % 1 %

10 09 The Supply Chain of the Future A LogiPharma Report 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. Mark James Vice President, OM Movianto Europe More than 50% have launched directto-patient distribution channels, or are set to launch them in the next year How far along is your company in implementing direct-topatient distribution channels? 32 % We will be implementing it in the next 1-3 years 5 % We are actively discussing it but there are no plans to implement just yet 26 % Fully operational we have been distributing by directto-patient channels for over a year 37 % Deployed we started distribution in the last 12 months

11 The Supply Chain of the Future A LogiPharma Report 10 Supply chains operating from the cloud To what extent is your company driving change in the supply chain using these technological innovations? Cloud Computing Supply Chain Data Analytics Customer Data Analytics Digital Technology (e.g. mobile apps) 0 % 1 % 3 % 39 % 57 % 0 % 1 % 22 % 39 % 38 % 1 % 2 % 33 % 41 % 23 % 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. Patrick Lemoine Vice President, Product Marketing, E2open 0 % 22 % 40 % 30 % 8 % 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

12 11 The Supply Chain of the Future A LogiPharma Report 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. Patrick Lemoine Vice President, Product Marketing, E2open Supply Chain set to have a much greater impact on the bottom line Which one of the following changes is the most likely to occur in 10 years time? 30 % Direct to hospital and pharmacy distribution will be significantly more common 3 % Supply chains will be far more segmented and specialized according to product 25 % Supply chain will have a much greater influence on market access 42 % Supply chain will have a much more significant impact on the bottom line of the company

13 Part Two: Investments and Actions

14 13 The Supply Chain of the Future A LogiPharma Report 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. Mark James Vice President, OM Movianto Europe Building better supply chains should be a collaborative activity Do you think your company should collaborate with others to achieve a more effective supply chain? 33 % Possibly, but it depends on the situation 3 % No supply chain should be used to differentiate from competitors 64 % Yes absolutely it s important to work with other pharma companies to develop a more effective supply chain

15 The Supply Chain of the Future A LogiPharma Report 14 Streamlining the transportation service provider roster is a major priority What do you think the number one investment priority for meeting GDP guidelines should be? 15 % Investing in active solutions 3 % Investing in passive solutions 15 % Risk assessing and adapting transportation routes 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. Patrick Lemoine Vice President, Product Marketing, E2open 40 % Consolidating or finding new transportation service providers 27 % Reassessing and changing strategy for freight sea vs. air. vs. truck vs. rail

16 15 The Supply Chain of the Future A LogiPharma Report 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. Mary Tussing Manager, Global Business Development, United TempControl Digitalization is a major priority for Supply Chain Is digitalization a priority for you? 10 % No mobile apps & devices will not be used in supply chain data analytics could be important though 14 % Yes very much so - the digital patient, wearables, smart packaging and the smart pill, mobile apps & devices and data analytics will be impacting pharma supply chain imminently, if not right now 39 % Yes mobile apps & devices, data analytics are all extremely important to the supply chain 37 % Yes, somewhat data analytics and an information-enriched end-to-end supply chain is important

17 The Supply Chain of the Future A LogiPharma Report 16 The IoT and Industry 4.0 expected to shake things up in the next 10 years Which of these disruptive technologies will have the biggest impact on supply chain over the next 5 years? D Printing 2.92 Artificial Intelligence 2.99 Wearables, mobile apps for patients & care professionals Industry 4.0 and the Internet of Things are technologies 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 also seen as important, more than big data. Patrick Lemoine Vice President, Product Marketing, E2open 4.19 Big Data 4.29 Blockchain Technology 4.54 Industry 4.0 and the Internet of Things

18 17 The Supply Chain of the Future A LogiPharma Report 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. Patrick Lemoine Vice President, Product Marketing, E2open Only a quarter are ready to comply with the EU s Falsified Medicines Directive How prepared is your company for the global serialization requirements outlined in the EU Falsified Medicines Directive? 15 % Not very prepared, it would be good to find out how other companies are managing this 59 % Somewhat prepared, but we are still developing our processes and technologies 26 % Very prepared we have all of our processes and technologies in place

19 Part Three: Supply Chain Visibility

20 19 The Supply Chain of the Future A LogiPharma Report Supply chain visibility is no longer a vision, it is a fact for a majority of pharma companies today. Patrick Lemoine Vice President, Product Marketing, E2open Supply chain visibility is very good for half of respondents How would you rate your visibility across your entire supply network? Excellent 14 % 49 % Very Good 29 % Good 8 % Fair 0 % Poor

21 The Supply Chain of the Future A LogiPharma Report 20 Visibility is broadly good, but is better downstream than up To 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) Raw material / API suppliers 0 % 3 % 27 % 48 % 22 % Downstream visibility to the DCs and all the way to the customers is the area in supply chain visibility that still somewhat challenging. Patrick Lemoine Vice President, Product Marketing, E2open CMOs / Packaging 0 % 6 % 18 % 42 % 34 % DCs 0 % 8 % 28 % 36 % 28 % Distributors/customers 0 % 9 % 30 % 37 % 24 %

22 21 The Supply Chain of the Future A LogiPharma Report Transparency and a willingness to collaborate with all stakeholders is an absolutely essential component of success. We truly believe that through partnerships and open communications, we all win. Mary Tussing Manager, Global Business Development, United TempControl Being responsive to changes in global demand is a major priority What are your key priorities when implementing end-to-end supply chain visibility? (Please rank each 1-5. #1 is the biggest challenge) Being more responsive to demand changes Building better relationships with customers Being more responsive to supply changes 30 % 27 % 26 % 16 % 1 % 23 % 21 % 33 % 17 % 6 % 17 % 28 % 39 % 12 % 4 % Improving quality and traceability 14 % 29 % 40 % 14 % 3 % Building better relationships with suppliers 12 % 23 % 40 % 19 % 6 % Better managing CMOs 10 % 31 % 34 % 19 % 6 % Enabling control tower-type capabilities 10 % 39 % 39 % 10 % 2 %

23 The Supply Chain of the Future A LogiPharma Report 22 About: E2open Founded 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: About: OM Movianto As 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 TempControl TempControl 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 For more information, visit: About: WBR Digital At 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) , chamatkar.sandhu@wbr.co.uk.

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