During the long downturn in R&D productivity, a handful of biopharmaceutical companies have consistently bucked the trend. How did they manage it? After all, they have experienced the same industry pressures as their peers - pressures such as lengthier R&D cycle times, higher costs of failure, and sharper regulatory scrutiny.
Paul Collier, supply chain senior manager of Amgen, talks about the major initiatives that the company has undertaken to improve supply-chain planning, collaboration and regulatory compliance.
Publix - a southeastern U.S. supermarket chain with 980 pharmacy locations - has entered into an agreement to use AmerisourceBergen's RFID-based drug-management system, known as Cubixx, to track specialty pharmaceutical products at the retailer's pharmacies.
Andy Walker, head of supply chain strategy with Merck, details the company's new approach to collaborative planning - and how it headed off resistance from internal users to change.
Aras, a vendor of product lifecycle management (PLM) software, is partnering with CGI Business Consulting to provide global companies with specialized intellectual property and integration services.
McKesson Corp., an international healthcare services and information technology company, is strengthening its position in Canada's pharmaceutical supply chain with the acquisition of Rexall Health for US$2.2bn.
Analyst Insight: The highly competitive pharmaceutical industry is innovating rapidly to meet the changing needs of an aging U.S. population. More than 10,000 baby boomers are turning 65 every day, a pattern that will continue for at least 14 years and equating to over 50 million by the year 2029. As such, how and where consumers obtain and receive pharmaceuticals will change, and logistics will be a driving force behind these movements. -- Kim McQuilken, Chief Operating Officer, Spend Management Experts
Analyst Insight: In 2015, I predicted that the healthcare industry was finally sharpening its focus on profitability and efficiency. While I was writing this Walgreens moved on Rite-Aid and further consolidated the retail pharmacy market, but more importantly strengthened their negotiating leverage on price breaks. If the cost of the supply chain from sourcing to production to distribution was not a priority, it just became critical to profit margins and customer service. - Brian Hudock, Partner, Tompkins International
Analyst Insight: Labor costs are rising just as the availability of workers is shrinking and turnover is increasing. According to the Census Bureau, 60 million Baby Boomers will exit the workforce by 2025, but only 40 million new workers will enter. Companies must rethink how they bridge that gap and keep costs in-line. Many life sciences companies are reaching a scale where investments in automation help replace manual, labor-intensive operations. But companies must be careful in evaluating automation investments. - Roger Counihan, Life Sciences Industry Leader, Fortna Inc.
