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.

 

 

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
  • SalesSight to make it easier for sales teams to provide inputs into the demand planning process through CRM integration and analytics for meaningful insights
  • Ensuring that decisions made in mid- to long-term will enable profitable and streamlined execution
  • Sales & Operations Planning for making decisions jointly with internal functions (such as, sales, operations and finance) and external partners (pharmacies, distributors, CMOs, and the like), on mid- to long-term actions for operating profitably and avoiding risk, through scenario building and analytics
  • Running a supply chain, with multiple supply chain partners (suppliers, CMOs, 3PLs…)
  • Ensuring continuity of supply
  • Forecast Collaboration to exchange forecasts and commits with suppliers and CMOs
  • Sourcing & Procurement 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
  • Monitoring product safety and quality at CMOs
  • Working effectively with CMOs
  • Responding to demand and supply changes as they occur in real-time
  • 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
  • Ensuring high finished goods availability
  • Effective distribution logistics

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.