Pharmaco Case Study

With the increased cost of manufacturing, pharmaceutical companies have been divesting in their smaller or less profit making operations and focus on large segments. Many Pharmaceutical companies sold their manufacturing sites to contract manufacturing organizations. The dynamics of interfacing with contract manufacturing organization added intricacy in pharmaceutical supply chain network of pharmaceutical companies.

This became even more complex when the Pharmaceutical companies expanded into new markets and the dependencies on contract manufacturing processes augmented.

This viewpoint talks about integration of supply chain network of a pharmaceutical company with contract manufacturing organizations, working challenges and approach for

The first four steps are the ones which will give a direction to the relationship between Pharmaceutical organization and CMO.

The next three steps will enable the usage of technology for successful integration.
Use forecasting tools to prepare accurate forecasts for CMO and measure forecast accuracy every three months.

Define processes and standardized interfaces to keep demand data for finished products aligned with CMO.

Share planned independent requirements of final product with CMOs and monitor the accuracy of dependent requirements of drug substance at CMO

Setup early warning system to inform customer about a potential stock out and supplier about a delayed order from CMO. This will help in reducing stock out situations.

Build tools to analyze stock situation of DSs provided to CMO, planned issues and actual issues.

Build the capability of Pharmaceutical company?s system to accept the delivery and confirmation data from supplier in a measurable format.
Use analytics tools to measure KPIs.

Set up a robust master data governance model and workflows to manage master data exchange between the systems of Pharmaceutical company and