Pharmaceutical companies are required to excel at many disciplines, and E2open can help.

Pharmaceutical companies are required to excel at many disciplines: research and innovation, production, sales, and marketing. At the same time, the competitive and regulatory intensity has significantly increased, with much stronger focus on profitability. All of this is putting new demands on the supply chain function, which is more than ever required to support the business. In this new context, important themes are key: 

  • Serialization and the need to satisfy demanding lot traceability and other quality requirements
  • High service levels, yet completely different manufacturing and supply chain strategies for prescription vs. over-the-counter products and generic vs. patented drugs
  • Increasing reliance on external partners such as contract manufacturing organizations (CMOs)

Some of the solutions already developed by E2open for other industries are helping pharma and biotech companies rapidly address these supply chain challenges.

Some pharmaceutical and biotech companies are already relying on E2open to address these challenges. They are leveraging the E2open network and supply chain solutions to operate their multi-enterprise supply chain in real-time, helping transform them into demand-sensing, integrated demand-supply networks. 

Challenge
Dealing with unpredictable demand (Mostly for higher volume drugs, OTC products)
Solution
Demand Sensing to accurately predict near-term demand by using current information to better reflect market realities, including performance of new products and promotions
Demand Planning that leverages advanced pattern recognition to create more accurate long-term forecasts and automate the planning process to improve planner productivity
Challenge
Running a supply chain, with multiple supply chain partners (suppliers, CMOs, 3PLs…)
Solution
Multi-Enterprise Cloud Connectivity to connect all supply chain partners in real-time
Supply Chain Visibility and Collaboration to synchronize all information across the supply chain to provide one version of the truth
Analytics and Visualization to provide an integrated, end-to-end supply chain cockpit, showing exceptions with their impact on KPIs, and with drill-down capabilities
Challenge
Ensuring continuity of supply
Solution
Forecast Collaboration to exchange forecasts and commits with suppliers and CMOs
Supplier Collaboration to collaborate on orders, shipments, and receipts as well as track issues with suppliers and CMOs
Inbound VMI to enable various replenishment models with suppliers, including multi-tier setups involving suppliers and CMOs
Challenge
Monitoring product safety and quality at CMOs
Solution
Quality & Traceability to track product quality at the CMO’s outsourced operations
Challenge
Working effectively with CMOs
Solution
Contract Compliance solution to calculate and/or validate CMO invoices
Challenge
Responding to demand and supply changes as they occur in real-time
Solution
Constraint-based Supply Planning to automatically generate a best feasible plan that optimally balances supply and demand and maximizes customer service level, with scenario planning/what-if analysis
Challenge
Ensuring high finished goods availability
Solution
Order Promising & Allocation to optimally and profitably allocate the right products to the right channels and make reliable commitments
Outbound VMI to enable various replenishment models with distributors, drugstores, hospitals, etc.
Inventory Collaboration to provide accurate inventory visibility across the supply chain
Inventory Optimization to best position inventory for optimal service levels
Challenge
Effective distribution logistics
Solution
Logistics Visibility to track actual shipping status
Transportation Forecasting for better planning of transportation needs

Success requires collaborative planning and execution techniques that deliver responsiveness to uncertain demand or customer needs while balancing the often conflicting goals of cost containment and fulfillment flexibility.