VALUE CHAIN IMPROVEMENTS IN PHARMACEUTICAL AND BIOTECH COMPANIES BRING VALUE The pharmaceutical and biotech (‘pharma’) industry is so diverse that it cannot be considered as a single homogenous entity. It comprises of businesses and entire sub-sectors that are radically different in many aspects. Each has their own challenges such as the the pace of change, pricing pressures, erosion of guaranteed primacy offered by patents, product development to commercialisation, manufacturing processes, competition, sourcing risks, changing patient needs, etc. However, one thing is common across the best pharma companies. They have found new ways to add value with the e2e synchronization of their ‘value chain’. Businesses are forced to challenge and rethink their global value chains. The need for resilience, speed and agility calls for greater ‘synchronization’. Not only internally, but with suppliers, customers and the wider eco-system to increase transparency and visibility. Impact on Top Line & Bottom LineImpact on Working CapitalImpact on Customer Experience Reduction of Order Lead Time Improvement in On-Shelf Availability Reduction of inventory Days-on-hand Full Compliance to Regulatory Submissions Reduction in Product Obsolescence & write-offs Assured Patient Safety Contributing to Enterprise Risk Management Improvement of innovation power Improved payback on R&D investment Improve your most important KPIsWE HAVE UNLOCKED VALUE IN YOUR INDUSTRY WITH OTHER CLIENTS Thanks to our knowledge of your industry and having worked with the academic world we have developed a framework that helps companies to move to the next level towards achieving a synchronized e2e value chain. This approach makes it possible to assess your company’s value chain performance - from design, to customer - and implement a progression plan to ensure you outpace your competitors. We benchmark your performance against the best practice results of your industry and we help you to both identify your desired level of maturity and create a plan that will help you attain synchronization across all disciplines. For example, we’ve been working for a global biotech company which, for a number of years, has been discovering, developing and delivering drug products for rare metabolic diseases. In its journey to becoming a scalable, ‘commercialised’ operation, the company needed to understand its current level of value chain maturity and to develop a plan to become ‘fit for growth’. The assessment process identified a number of functional areas to develop along with foundational elements such as a performance control system, digitalisation and leadership. One of the results was a rebalanced, leaner organisation adopting a ‘single agenda’ roadmap to reach the ‘In Control’ level. Synchronized value chains will dynamically adapt and respond faster to the “new normality”. and the competitive gap between companies that lead the way in synchronization, and those yet to get started is widening. The strategic relevance of an e2e synchronized supply chain is changing. Costs and working capital continue to remain relevant focal areas, but impact on customer experience and quality/ safety assurance are becoming increasingly important drivers. The overriding factors critical to the long- term success of pharma businesses are Innovation and Enterprise Risk Management (ERM). Assessment of your company’s value chain performance TOGETHER WITH YOU, WE ASSESS THE CURRENT E2E PERFORMANCE… Our research has shown that typically, around 60%(!) of ‘losses’ occur between the disciplines (from Design to Customer). Just think of the non-value add activities such as rework, that departments need to go through before they can use input from other departments. For most companies we’ve worked with in pharma we have seen big opportunities in helping them gain alignment between external pressures and internal actions and to ‘think’ and ‘behave’ End-to-End across the entire Value Chain as a means of creating competitive advantage. TO GIVE A FEW EXAMPLES OF WHAT TYPE OF PROJECTS COULD BE INITIATED • Global End-to-End Network Design when facing a fragmented manufacturing footprint (CDMOs, CMOs, QC labs, etc.), the individual site might be optimised, but a network strategy and defined relationship management approach is essential to stay competitive and benefit from potential scale. • World Class VC Progression when your global network lacks consistent standards across SC Operations (Customer Services, Planning, Warehouse and Transportation) resulting in losses. • Value Chain Integration when inventory policies or decisions are developed for different types of inventory (RM, FG, WIP) in isolation from the total supply chain view. • Implementing an Integrated S&OP when portfolio complexity and unstructured value chain management is causing more and more frequent stock outs and worsening customer service. • New Product Development Process when product development is seen as an art instead of a craft and the development funnel is too unpredictable. • Strategic Visioning when market developments, new technologies (3d printing, COVID) force the company to rethink its SC strategy. ...AND TRANSLATE THAT INTO HOW TO REACH TANGIBLE RESULTS The next step is to systematically and concurrently improve these weak spots. This enables you to break down the silos and work towards an e2e integrated & synchronized value chain or even a real time network. Together with your people, we build an e2e progression plan that allows you to progress concurrently in line with the best players in the industry. With our wealth of experience we are able to translate findings from the assessment into proven improvement initiatives that boost results, working on processes, human dynamics and digital support). “The model ensures that all e2e domains advance their capabilities and performance standards with aligned goals and synchronized workflow.”WHO ARE WE? Our consultants for pharmaceutical and biotech are at the top of their game and work passionately in the industry every day. With 40 years’ experience EFESO’s offer encompasses the end-to-end value chain, assuring fast and sustainable results. Our high impact projects include the best digital and advanced analytics solutions, maintaining the historical attention to organisation design and a human centric approach. If you need more information regarding our value chain approach for the pharmaceutical and biotech industry please contact: Chris Kay Industry leader pharmaceutical and biotech Chris.Kay@efeso.com Eitel Monaco End to End Value Chain International Expert Eitel.Monaco@efeso.com https://www.roi-international.com/ https://www.efeso.com/Next >