The Value of Visibility. Bob Celeste GS1 Healthcare US

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2 The Value of Visibility Bob Celeste GS1 Healthcare US

3 The role of GS1 GS1 is a not-for-profit organisation dedicated to the design and implementation of global standards to improve the efficiency and visibility of supply chains globally and across sectors 108 member organizations 35 years of experience Neutral platform for all supply chain stakeholders Over a million companies doing business across 150 countries Over 6 billion transactions a day GS1 is the most widely used supply chain standards system in the world

4 Why Global Standards? The package has: 6 machine readable codes (5 barcodes, 1 data matrix). 17 flags (UK, Ireland, Malta, Netherlands, Belgium, Germany, Austria, France, Spain, Portugal, Greece, Cyprus, Norway, Sweden, Denmark, Iceland, Finland) (not Italy) 12 different language texts (English, French and German are used in more than one country). 5

5 The Value of Visibility An interesting way of looking at visibility and value Some examples 6

6 An Interesting way of looking at the value of visibility How do we typically look at, or measure value? Cost Models, P&Ls Graphs

7 An Interesting way of looking at the value of visibility How do we typically look at, or measure operations? Diagrams SOPs

8 An Interesting way of looking at the value of visibility How do we typically look at, or measure Visibility? Power Points And more Power Points

9 What if We could depict our visibility projects in a visceral way, so that: Visual thinkers could see the future that we are suggesting Our CFOs could calculate the actual value Our I.T. and Operations staff could understand the changes to their systems and processes Our business units could touch the new data that will be available to them

10 The process we are using within GS1 US With examples from the U.S. Pharmaceutical Supply Chain 2015 Readiness Program

11 Our tool box: Simulation software and techniques To depict process changes, product flow, asset utilization, information flow and cash flow Excel To capture simulated visibility data from the simulation and calculate cost / benefits Access database To depict proposed business reports based on the simulated data Word To report findings

12 U.S. Pharmaceutical Industry 2015 Readiness Program Simple supply chain simulation 13

13 U.S. Pharmaceutical Industry 2015 Readiness Program Generated Visibility Data 14

14 U.S. Pharmaceutical Industry 2015 Readiness Program Reports generated from Visibility Data 15

15 The benefits of using Simulation Test the impact of policy decisions on: Operations Information infrastructure Cash flow and funds management Visualize your processes logically or in a virtual environment Identify problem areas before implementation Explore the potential effects of modifications Confirm that all variables are known Optimize your operations Understand why observed events occur Communicate the integrity and feasibility of your plans Compare the value of alternate scenarios 16

16 Examples

17 The Value of Visibility Proof of Delivery Example

18 Example From the U.S. Pharmaceutical Supply Chain 2015 Readiness Program

19 U.S. Pharmaceutical Industry Business Drivers State and Federal Regulation By 2016, Pharmaceuticals will: be identified by the GTIN and a unique Serial Number have dispositions associated with each item Be tracked through the Supply Chain In the near future*, Medical Devices may: be identified by the GTIN and the Lot Number or a Serial Number have states, or Dispositions associated with each item * Pending FDA Regulatory action 20

20 GS1 Healthcare US Secure Supply Chain Task Force What we ve been doing since 2003 Raw Material Supplier Contract Manufacturer Manufacturer Wholesaler Wholesaler Pharmacy 21

21 The Value of Visibility U.S. Pharmaceutical Example In 2009 we identified 130 business processes that could benefit from visibility data. In 2010 we will continue to define the details behind each process. 22

22 Visibility data that can be mined for new value

23 Examples: Forward Logistics Reverse Logistics Recalls Returns Withdrawals Shrink/Loss Prevention Pharmacy Theft Cargo Theft Chargebacks Rebates Customs clearance Diversion U.S. Pharmaceutical Industry Business Drivers Examples: Vendor Managed Inventory Investigations Perfect Order Infection Control Patient Flow Dispensing Errors Operating room turns Pharma co-vigilance Waste stream management Action Valuation Shared Vision Analysis Identificatio n 24

24 U.S. Pharmaceutical Industry 2015 Readiness Program Simple supply chain simulation 25

25 U.S. Pharmaceutical Industry 2015 Readiness Program GDSN and GLN Registry Usage 26

26 U.S. Pharmaceutical Industry 2015 Readiness Program Manufacturer Example 27

27 U.S. Pharmaceutical Industry 2015 Readiness Program Wholesaler Example 28

28 U.S. Pharmaceutical Industry 2015 Readiness Program Provider Example 29

29 U.S. Pharmaceutical Industry 2015 Readiness Program Simple supply chain simulation Each Supply Chain Partner needs to decide on a data sharing strategy What have we learned so far? There are many individual decisions to be made: Where should data be captured What Business Step is represented What is the Disposition of the product at each step 30

30 U.S. Pharmaceutical Industry 2015 Readiness Program Simple supply chain simulation Each Supply Chain Partner needs to decide on a data sharing strategy What have we learned so far? We are working through how the EPCIS messages are assimilated into existing systems and how the data can be mined for additional benefits. There are many individual decisions to be made: Where should data be captured What Business Step is represented What is the Disposition of the product at each step 31

31 U.S. Pharmaceutical Industry 2015 Readiness Program- Planned Simulations Contract Manufacturers (packaged finished goods) Chain drug stores (w/warehouses) 3PL s Wholesalers that purchase from other wholesalers Hospital Pharmacy Manufacturer to Pharmacy (not drop ship) Manufacturer to clinic / practice office Small Wholesaler Specialty Wholesaler (limited # of products purchased) Exclusive Wholesaler Specialized Wholesaler (trades only with Dr. offices and Clinics) Specialty pharmacy (limited # of products purchased) Manufacturer to manufacturer s pharmacy Manufacturer to repackager (repackaging detail held until 2 nd Qtr) 32

32 For more information GS1 US Bar Code Certification June 7 8 San Antonio 2015 Readiness Program Advanced Forward Logistics Reverse Logistics Exception Processing 2015 Readiness Workshop June 8, San Antonio

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