• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » How to Synchronize the Pharma Supply Chain in Three Steps

How to Synchronize the Pharma Supply Chain in Three Steps

April 5, 2017
SupplyChainBrain

Traditional supply-chain planning has been a letdown in the last decade for drug companies. Historically, stable demand has been replaced by random demand patterns driven by tenders, rebate contracts, market disruptions, weather patterns and unexpected outbreak of diseases. The supply organization has been slow to react and unable to scale up or down to absorb this demand variability due to multiple factors such as constrained assets, new manufacturing platforms and extended lead times. Pharmaceutical companies have invested millions of dollars in planning systems, but their success in solving these issues has been very limited. An end-to-end synchronization approach can enhance the capabilities of these systems and enable stability for the supply network.

With this erratic situation, three key planning concepts within the spectrum of supply-chain synchronization exist to align planning processes in the drug industry. The main objective is to determine and solve the dissonance across the end-to-end supply chain that includes material and information flow between the nodes across the network.

The three steps toward a synchronized supply chain are as follows:

Visualize
In this first step, it is imperative to conduct a quick segmentation of the drug product portfolio based on the variation in the magnitude of demand across time periods. After this exercise, differences in demand and supply volatility are assessed at and across the various nodes in the network to understand the differences in production response given a particular demand signal or a given dispatch cycle. Combined with existing product priorities and other initiatives, this allows differentiated response strategies for each identified cluster.

Stabilize
In this second important step, pharmaceutical companies should dedicate special consideration to the design of optimal production and dispatch frequencies to stabilize production lot sizes and lead times. To generate optimal production sequences in conjunction with setup times and campaign volumes, the synchronization model relies on “rhythm wheels.” This type of modeling will generate optimal production quantities and sequences; perform line or asset assignments; and allocate capacity across time periods. With drug manufacturing plants, this is a huge plus as it reduces the inventory bullwhip effect and increases the utilization of capital-intensive, capacity-constrained equipment.

Optimize
While the first two steps focused on operational stability and efficiency, the third step focuses on end-to-end planning to better capture sales opportunities and market tenders. The impact of a holistic synchronization process is to effectively translate demand signals into profitable and coordinated supply fulfillment decisions by leveraging timing mechanisms across the entire global supply chain. This can be achieved by facilitating “what-if scenarios” to model trade-offs based on a number of parameters including inventory, capacity constraints and capital costs.

The Outlook

As we approach 2020, pharmaceutical supply chains will continue to get more complex. Executives will be under increasing pressure to dramatically reduce cost while improving service levels. Synchronization techniques involving people, process and technology can help make this happen today. Companies that pursue synchronization can unlock hundreds of millions in value by increasing sales and margin, accelerating product launches, increasing throughput and stabilizing supply while improving access to lifesaving medicines for patients around the globe.

RELATED CONTENT

RELATED VIDEOS

SC Planning & Optimization Global Supply Chain Management Healthcare Pharmaceutical/Biotech
KEYWORDS Global Supply Chain Management healthcare Pharmaceutical/Biotech SC Planning & Optimization Supply Chain Analysis & Consulting
  • Related Articles

    In a Time of complexity, Go for Simplicity: Three Steps That Lead to the Supply Chain of the Future

    How to Digitalize Your Supply Chain in Five Steps

    Three Steps to Creating a Low-Risk Supply Chain

SupplyChainBrain

100 Great Supply Chain Partners Issue 2009

More from this author

Wake up to Coronavirus Updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Coronavirus-watch-Armada

    Virus Update: Biden Sees Fast Rollout of J&J Vaccine; Astra CEO Defends Delivery Shortfall

    Coronavirus
  • West Coast Port Congestion

    Shippers Need Alternatives to West Coast Port Congestion

    Logistics
  • Mexico

    The Near-Shoring Trend: Will China’s Loss Be Mexico’s Gain?

    Logistics
  • Robotic automation

    Autonomous Supply Chains Are on the Horizon

    Coronavirus
  • Drugmakers

    Research Lays Groundwork for More U.S.-Made Drugs

    Coronavirus

Digital Edition

Scb feb 2021 lg

2021 Supply Chain Management Resource Guide

VIEW THE LATEST ISSUE

Case Studies

  • Remote Implementation: A Dose of the Right Medicine for B2B Pharmacy

  • LSP Saves Customer $1.5 Million a Year With MPO Global Inbound Management

  • Auto Supplier Wows Key Client Using riskmethods Supply Chain Savvy

  • Integrating Shipping and Compliance Saves Conglomerate Millions

  • How a Consumer Goods Giant Upped Its On-Time Delivery Performance

Visit Our Sponsors

6 River Systems ArcBest Armada
aThingz BluJay Burris Logistics
DSC Logistics DCSA (Digital Container Shipping Association) DHL Resilience360
Genpact Geodis GEP
Honeywell Intelligrated Infor Logility
Magnitude Software MPO Old Dominion
Oliver Wight OpenSky Ports America
Purolator QAD Precision Red Classic
Riskmethods Snapfulfil TGW Systems
Transportation Insights Watson Land Company Westfalia Technologies
Workjam Yang Ming  
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2021 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing