Today, pharma supply chains hold massive buckets of data, making it a rich place to establish analytical advantages for Pharma and Life Sciences companies — to develop a comprehensive, analytical approach to optimize their supply chain and operational efficiencies. To meet the current industry challenges and increasing supply chain complexity, our experts can evolve your supply chain in three areas—enablement, effectiveness, and earnings.
Before pharma companies can analyze how effective their supply chain really is, they will need to have clear, end-to-end visibility of their global supply chains linking strategy, performance, management and risk. At a simple glance, this begins with basic metrics and reporting, as these tools provide the backbone of data for performance measurements. Enablement can occur in three areas:
- Demand Visibility: Poor forecast accuracy and demand volatility continue to challenge drug companies due to sub-optimized sales and operations planning (S&OP) processes. There is a need to make basic forecasting metrics more visible to enable replenishment; KPIs such as forecast accuracy, forecast bias, and On Time-In-Full can be very quickly deployed and will help measure the pulse in the supply chain planning domain.
- Inventory Visibility: From KPI dashboards with multi-dimensional drill-down to analytics enabling near real-time inventory tracking and tracing for controlled drugs, we can handle it all. Analytics in this space include inventory variance analysis, inventory revaluation, inventory reporting, gross-to-net inventory bridge, days on hand, as well as inventory usability for obsolescence purposes.
- Transportation Analytics: Drug companies can realize immense performance improvement opportunities through analytics-driven activities such as improved visibility for in-transit goods, freight lane reporting, fleet sizing, load planning, and freight cost consolidation. A quick win here would be to target freight lanes that create imbalances over time and identifying which route supports the business and which ones do not.
Decisions can only be as good as the data coming through. We help you build effective supply chain with appropriate, consistent movement of data up and down the supply chain.
- Manufacturing Analytics: Bringing data under a single umbrella becomes a powerhouse for driving process improvement in the manufacturing space in conjunction with compliance to the ever-changing regulatory guidelines. Real-time measurements of process parameters allow drug manufacturers to leverage advanced statistical analytical methods to monitor and correct process conditions before a potential quality failure occurs.
- Network Optimization: Network design is a powerful, analytics-driven modeling approach proven to deliver significant reduction in supply costs and customer service-level improvements. Cost-based analytics focused on KPIs such as investment cost; return on investment; sunk costs; stock costs; transportation costs; etc. can help you choose between a centralized and a decentralized network design
- EARNINGS A positive working capital ratio is essential for pharma companies to be able to operate profitably, service its debt, and fund upcoming operational expenses. Supply chain analytics can play a huge role in the active management of working capital. The focus on achieving a high-quality balance sheet requires granular level cost information at every point in the supply chain by product, by distribution channel, and by customer. Quantifying these cost differences can help a company discontinue an unprofitable product, alter a distribution network to increase profitability, and then redeploy the freed up capital towards new drug research or towards other innovations.