GSK Consumer Health Supplier Relationship Team (SRT) Concept. Yassine Laqbayli Supplier Interface Manager GSK AGENDA TOPICS
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1 GSK Consumer Health Supplier Relationship Team (SRT) Concept Yassine Laqbayli Supplier Interface Manager GSK AGENDA TOPICS Introduction to GSK Consumer Health Link between Supply Chain and Supplier Relationship Team Supplier Relationship Team Concept Conclusion
2 GlaxoSmithKline GSK Consumer Healthcare Fast Facts Our mission and values What we do Our brands Our partners (Contract Manufacturers)
3 GlaxoSmithKline GSK Fast facts Consumer Healthcare We make a range of consumer healthcare products in the areas of Pain, Respiratory, Skin health, Oral health and Nutrition/Gastro intestinal 60% internal manufacturing sites 40% external manufacturing sites 3 divisions 23bn Turnover in 2014 We employ over people, working in 155 countries 6.1bn pro forma sales 25% of group turnover* CH represents 25% of group turnover* 12 months pro forma data for 2014 including India and Nigeria
4 GSK Consumer Health Position Fast facts GSK Novartis Joint Venture
5 GlaxoSmithKline GSK Our Mission and Values Be patient focused: Put patients and consumers first Act with integrity: Do the right thing We are on a mission to help people do more, feel better, live longer Operate with transparency: Be clear, be honest, be authentic Demonstrate respect for people: Inspire each other to achieve great things
6 GSK Consumer Healthcare What we do No.1 manufacturer of OTC (over-the -counter) Healthcare products in the world 18.5bn products packs sold in bn consumers reached by our products * 12 months pro forma data for 2014 including India and Nigeria 6
7 Our broadened portfolio 7 Power Brands and 12 Core Brands with global reach (160 countries) #1 in systemic pain relief Over 80% of people have signs of gum disease - Parodontax has been recommended by dental healthcare professionals for more than 75 years Cold and flu account for 100 million physician visits worldwide each year- We now have a strong selection of regional and local brands in cold & flu #1 in topical pain relief Half of physicians visits around the world are about pain Global leader in denture care 1 in 5 people wear dentures The world s #1 OTC nasal decongestant #1 in sensitivity 1/3 of adults are sufferers 7
8 Contract Manufacturers by Region 40% of Consumer Health business Global CMOs CMO: Contract Manufacturing Organizations f Inter-Affiliates 12 CMOs Total 246 CMOs * ISC 24 CMOs 8
9 GSK Consumer Healthcare Link between Supply Chain and Supplier Relationship Team
10 Supply Chain Management SC in the context 246 Contract Manufacturers 160 Countries Source: KnowledgeBrief.com Could we deliver better value to the business with an integrated Supply chain How could we help our partners deliver on time, in full and with the right quality? Could Supply Chain be isolated from other functions? How could we take fast decisions in case of supply issues? 10
11 Supply Chain Management and Relationships It is all about managing relationships with partners to satisfy customers Upstream flow of information Supplier Relationship Team The management of relationships and flows along the «string» of operations and processes that produce value in the form of products and service for the ultimate consumer Quality Speed Dependability X-functional Team Quality Service Downstream flow of operations performance Source: Operations and Process Management, Slack et al., 2 nd ed., 2009 Flexibility Cost Value 11
12 GSK Consumer Healthcare Supplier Relationship Team Concept
13 Supplier Relationship Team (SRT) Leading a Virtual Plant Think of a Plant, but instead of having the physical production lines on site, they are spread across a number of CMOs The SRT acts as a Site Leadership Team for a Virtual Plant. We have 17 SRTs globally plus 2 for Inter Affiliates The Supplier Relationship Manager (SRM) performs the role of Site Head for the associated portfolio 13
14 SRM Site Director Manufacturing Site versus SRT Model SRT model was developed to mirror the manufacturing sites Manufacturing Site Raw Materials Packaging Components Engineering QA/QC Production Technical Procurement Finance Supply Chain Work Centre 1 Work Centre 2 Work Centre 3 Work Centre 4 Finished Goods Product Demand Product Demand SRT Model Supply Chain Finance Procurement Technical QA Finished Goods Market Raw Materials Packaging Components Site 1 Site 2 Site 3 Site 4 Net Requirements Site 1 Site 2 Site 3 Site 4 14
15 SRT Model Overview Supplier Relationship Manager (SRM) role Supplier Relationship Team (SRT) x-functional team to manage the relationship with assigned contract manufacturing sites, driving supply strategy and internal alignment to deliver superior results in Safety Quality Service Value Overall Compliance 15
16 SRT Model Overview Core cross functional team leading key areas of focus QA Region Risk Management GMS Category Technical Regulatory Quality Relationship with supplier QA CMO Procurement Contract and Synergies Legal Move Product HR Packaging EHS Corporate Development Innovation Customer Service Project Mgmt SRM Technical Product Portfolio Management Supply Chain Supply and Capacity Planning Value Creation Finance IT Production Procurement R&D / AS&T 16
17 SRT Implementation What the SRT Model provides both within GSK and to our Suppliers SRT is point of contact with specific suppliers Consistent, aligned strategy with suppliers Team speaks as one GSK voice Balanced, cross-functional perspective to supplier direction, guidance and issues Not working at cross purposes Improved and accelerated decision making both within GSK and with suppliers Ownership and Accountability SRT owns the relationship with the supplier Clear accountability for supplier performance Ensures an End-2-End mindset Standard Global Process Standardized Way of Working Someone outside of SRT can work with an SRT in India in the same way as with an SRT in Brazil Opportunity to move talent within and between regions if required or for talent development 17
18 Key messages Supplier Relationship Team (SRT) E2E visibility to identify and eliminate supply risks How SRT model Optimized communications and consistency ensures healthy Supply Chain Value creation and innovation promotion Fast decision making in case of supply issues X-functional team is a must to ensure healthy Supply Chain Exceptional performance is obtained by managing the E2E Supply Chain 18
19 Questions 19
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