Supply chain as a source of competitive advantage in pharma industry

Case1: Effectiveness and Efficiency of RFID technology in Supply Chain Management: Strategic values and Challenges Context: We examine the appropriate business processes affected by the RFID technology,
the required planning and examination for successful implementation, and many potential impacts on effectiveness and efficiency of supply chain management. RFID technology can help a wide range of organizations and individuals such as hospitals and patients, retailers and customers, and manufacturers and distributors throughout the supply chain to realize significant productivity gains and efficiencies. RFID application in supply chain is Standardization for encoding information on RFID tags similar to the current bar codes on Universal Product Code (UPC) system.

RFID technology can help a wide range of organizations and individuals such as hospitals and patients, retailers and customers, and manufacturers and distributors throughout the supply chain to realize significant productivity gains and efficiencies. Tools used: Supply Chain Management Processes and RFID applications: Four supply chain management processes Demand management and RFID: Order Fulfillment and RFID Manufacturing Flow Management and RFID Returns Management and RFID Conclusion: Using four major supply chain processes, we highlight economic opportunities and challenges when planning and implementing RFID technology within an existing supply chain framework. RFID offers significant strategic value potential for companies in developing an integrated model of supply and demand chain to drive revenues and innovation and to gain competitive advantage. As companiesdevelop their RFID strategies, they must look beyond mere compliance for ways to implement these initiatives into their total supply chain strategy and harness the true business value of the technology, hastening profits.

Case2: Optimizing Pharmaceutical Sales Processes. Siebel Pharma Dynamic Sales Solution.
Recent guidelines in various states regarding tracking and reporting promotional spend make product promotion more difficult. Oracles Siebel Pharma Dynamic Sales enables pharmaceutical sales forces to gather customer information across various channels and leverage it to improve the planning and execution of sales activities. It also improves effectiveness with robust applications that enable best-practice sales processes.

Tools used: Sales-channel saturation and increased regulation are driving pharmaceutical companies to change their customer engagement model. There are critical categories of sales enablement best practices that must be changed in order to achieve a competitive advantage, including Align sales and marketing business processes. Realign and refocus sales efforts as needed. Integrate account management-based and physician-based sales models. Gain companywide visibility on physician promotional activities.

Redefine Customer Engagement Models with Siebel Pharma Dynamic Sales Solution:
The Siebel Pharma Dynamic Sales solution set supports offline analytics for improved physician targetingrendered within the sales applicationto help turn insight into action. 1. 2. 3. 4. Enable Newer Sales Models Integrate Marketing and Sales Business Processes Improve Targeting and Segmentation Realign Sales Territories Quickly and Effectively Realign sales forces in a shorter timeframe Validate alignment prior to deploying in production Model several alignment strategies concurrently Maintain an historical view of alignments and territories

Conclusion:
Siebel pharma is designed to meet the unique needs of the pharmaceutical industry. the applications provide best-in-class functionality for field sales and management, telesales, national accounts, medical affairs, customer service, and marketing organizations. By integrating all critical customer-facing functions, siebel pharma ensures that organizations are prepared to maximize customer value, while delivering superior service information gives competitive advantage.

Case 3: SUPPLY CHAIN STRATEGY AND OUTSOURCING THE CASE OF THE GREEK PHARMACEUTICAL SECTOR
Context: Actually, the use of pharmacies is today part of the culture, society and the way of life and has important implications in public health, employment, manufacturing production and distribution. the case of Greece, as a member of the European Union --extended to 27 member countries, few of which are in infancy situation -- the historical challenge of adjustment adverts in whether and how the new corporate and technology environment can be transformed from threats to opportunities. Tools used: Evolving in synchronizing customer demands with use of logistics may contribute in keeping network optimized at all times and improve process efficiency, by reducing the time and labor required to order, track, deliver and stock of products. Moreover, integrated systems at network supply chain level of temperature-controlled shared warehouses and transportation management services, can increase capabilities and ensure the right product where and when needed, so that to reduce inventory and improve delivery status. Survey Study Results The Importance of Logistics: The Logistics Organization: Logistics Outsourcing (3PL): Main Advantage of 3PL Warehousing: Cost of Assigning 3PL Warehousing Services: Use of 3PL in Distribution: Assessment of the Distribution Outsourcing: Follow up of Companys Logistics Cost and Computerization of Logistics:

Conclusion: It can contribute to awareness for use of all available infrastructure, raise collective capabilities, inducing innovation and promoting creation of sustainable competitive advantage, within the single market of the 27 EU member countries. Finally, future research is suggested in the following particular areas It may contribute to improving outsourcing of other pharmaceutical companies by offering a package of specialized services helping leverage others supply chain to improve customer satisfaction in one of the worlds most competitive industries. 2. A study concerning the introduction of RL (reverse logistics) within the Greek National Health Service (NHS). 3. A study to promote information and education in health care decision making by unskilled medicare beneficiaries, following foreign experience national medicare education programs for saving in use of drugs.

Case4: ON-LINE PHARMACIES: E-STRATEGY AND SUPPLY CHAIN FOR PHARMACEUTICAL PRODUCTS Context:
In e-business strategy, many online retailers have focused on streamlining the logistical process of delivering the physical goods to the customer and aimed to achieve competitive advantage over brick and mortar retailers. This paper argues that the impact of online pharmacies will be greater on the information supply chain than on the physical supply chain for pharmaceutical products and that an effective strategy for online pharmacies will focus on the provision of information to the customer and building net enabled models that offer competitive advantage.

Tools used: The Internet has become a major source of information for all products and services. Online Pharmacy Business Models Distribution Network Supply Chain Improvements Pharmaceutical Information Supply Chain Improvements

The traditional supply chain is manufacturer wholesaler retailer customer, typical of most Products. In the case of large pharmacy chains the wholesale operation is managed by the chain rather than an independent wholesaler. Coclusion: This paper studies the impact of online pharmacies and their impact on the supply chains for pharmaceutical products. There is however a huge opportunity for online pharmacies to serve as effective infomediaries in the information supply chain for pharmaceutical products.

Case5: pharmaceutical business strategies for pharma/bio success commerce The Path to Relief: Outsourcing as a Competitive Tool
Context:
Outsourcing supply chain operations is increasing for companies to regain their focus and remain competitive despite new market challenges. Outsourcing: The key to smooth operations Pharmaceutical companies face regulatory and quality control obligations that can include strict distribution and tight temperature control requirements. Tools used: Healthcare manufacturers have an opportunity to turn an outsourced supply chain into a competitive advantage in four key ways:

 Integrated 3PLs deliver enhanced economies of scale. Distribution costs can be reduced because the 3PL partner creates operational efficiencies and spreads its investment in equipment, facilities, labor and systems, as well as purchased transportation, across a broader customer base. Leveraging the breadth and scope of a 3PL providers service portfolio puts smaller or newer industry entrants on competitive footing with their larger business rivals. They can tap into value-added combinations optimized to meet healthcare industry needs, but differentiated for product requirements, service responsiveness and coordinated channel flow. Outsourced service providers have turnkey shared-utility solutions that require minimal capital investment. The healthcare executive can then assign the balance of the financial resources to meet strategic business objectives. With a third-party logistics partner, the options expand. Beyond bottom-line efficiencies, outsourced logistics providers can also positively contribute to clients top-line sales growth through high-quality, customer-focused service delivery. Leading corporations in all sectors of the global economy understand that product and price differentiation can contribute to marketplace success, but consistent customer service delivery drives it. Coclusion: The methodology used to redesign a supply chain for well established healthcare companies can also benefit new companies. Newer pharmaceutical companies can eliminate supply chain problems altogether by using an outsourced partner. When consistent performance on multiple levels is non-negotiable, outsourcing to a 3PL with the right resources is a path to relief.

Case 6: Excellence in Supply Chain and Production Gaining Competitive Advantage in the Life Sciences Industry Context:
Today, most companies in the pharmaceutical and biotech industries are operating on a global scale in increasingly regulated, complex, and competitive marketplaces. These companies are embedded in wide networks of sub-companies, suppliers, third-party manufacturers, and distributors. As a result, while making decisions to minimize risks, it is often difficult to select the best options or to gain a competitive advantage for their networks Tools used: To yield the potential hidden in supply chain and production, companies need to follow a holistic approach consisting of four dimensions: Definition of a clear supply chain and production strategy incl. the corresponding governance Design of the network organization Optimizing asset/ capacity utilization Managing the product/ process complexity. Next to quality and timeliness, the major improvement levers of supply chain and production excellence are to increase production maximize the output reduce investments needed increase cost efficiency

Conclusion: the application of analytical techniques to solve complex manufacturing problems, has a track record of numerous successful projects with the most prestigious pharmaceutical companies in the world.

Our combined capacity creates solutions for highly complex manufacturing and supply chain situations with numerous, mutually interfering constraints.

Case 7: article by Marco Ziegler, Ulf Schrader, and Thomas Ebel, McKinsey & Co. Context:
The cost of sticking to the current pharma supply chain model is high, both from a strategic perspective as well as a financial one.

But drug manufacturers still manage supply chains in terms of months and years, rather than days and hours: It takes an average of about 400 days for a drug to go from raw materials to finished product and, typically, 50-70% of a companys sourced volume is still under fixed annual volume commitments. Tools used:
We have identified five key areasassets, suppliers, people, process, and strategywhere increased flexibility leads to competitive advantage.

Asset Flexibility Flexible scheduling within plants Balancing capacity: Structural regulatory flexibility

Supplier Flexibility Strategic sourcing plans: Contracting for flexibility: Integration and lean processes: Supplier development and renewal: People Flexibility Multi-skilling and labor flexibility Global innovation task force Process Flexibility Platforming and postponement: Lean fulfillment and replenishment: Fast time to market: Fast supply issue resolution: Event-based forecasting: Flexible Strategy Deep understanding of customer needs: Demand-driven segmentation:

Conclusion:

Pharmaceutical companies have focused primarily on reducing manufacturing costs and inventory levels over the last 3-5 years. Going forward, this will be less and less differentiating. But supply chain can be a true differentiator, impacting top-line as well as bottom-line performance. Industry leaders will go beyond the focus on manufacturing cost to adopt a supply mindset and measure total cost of supply rather than COGS. Building flexibility into multiple facets of the supply chain will be critical to maintaining competitive advantage.