SUPPLY CHAIN AND OPERATIONS
Supply Chain and Operations
SUPPLY CHAIN AND OPERATIONS, CORNERSTONES OF SUCCESS IN A
DIGITAL WORLD
The Supply Chain can be summarized as the set of activities that consist in producing and supplying the product to the patient. Sometimes complex, it proves to be an essential factor of success thanks to a meticulous management in a world where digital technology is taking a predominant place.
THE SUPPLY CHAIN,
KEY TO SUCCESS
Any organization that provides a product or service to a customer, whether manufactured or traded, should manage supply chain activities at different levels of complexity. The Supply Chain typically includes the following activities:
1
End-to-end planning at strategic, tactical and operational levels
2
Sourcing - Purchasing and procurement of materials and services
3
Production in-house or outsourced to a Contract Development Manufacturing Organization (CDMO) for clinical and commercial products
Supply Chain management must integrate returns, or "reverse logistics", and may also include packaging development. The supply chain extends from your suppliers' suppliers to your customers' customers, the end customer, the patient.
4
Storage of raw materials, ingredients, devices, finished and semi-finished products throughout the supply chain
5
Delivery and distribution to the point of utilization
6
Activities enabling the management of the supply chain. These includes the business rules, the management of performance, data, resources, facility, contract, network, regulatory compliance and risk
MANAGING THE SUPPLY CHAIN,
A MAJOR SUCCESS FACTOR
In a rapidly evolving economic context, where the pace of change has increased dramatically, supply chain management has become more critical than ever for the success of companies. Well organized, it provides a strong competitive advantage. If not, it can derail your best projects. It is a differentiating asset that can either develop the business or damage it.
The digital technology has accelerated market dynamics. Where organizations traditionally relied on forecasts and historical data to meet demand in the most cost-effective way, they now face a new challenge. People connected by mobile technologies and social networks across the globe react to information instantly, shattering day-to-day forecasts.
In the age of 24-hour connectivity, the supply chain must be reinvented to stay competitive.
“
”
This requires a different approach to the problem.
It is necessary to develop a greater level of "customer/patient intimacy" and a greater integration of all the actors and stakeholders of the Supply Chain. Information sharing and its utilization (as a network, rather than sequentially along the Supply Chain), manufacturing agility, digital capability, lead times, inventory sizing, strategic partnerships with suppliers, and logistics schemes are all components that need to be rethought to remain competitive.
Discover our
"Profiling" offer
STRIVE FOR OPERATIONAL EXCELLENCE
FOR OPTIMAL RESULTS
Leading organizations aim for Operational Excellence to achieve the desired results by focusing on core concepts:
1
In-control processes: understanding critical process parameters and reducing variability to ensure a reproducible product quality
2
Adding value for customers: creating renewed value for customers/patients by understanding, anticipating and meeting their needs, expectations and opportunities
3
Creating a sustainable future: making a positive impact on their environment by improving their performance while advancing the economic, environmental and social conditions of the communities they are connected with
4
Develop organizational competencies: increase their skills in managing change effectively within and across organizational boundaries
5
Harnessing creativity & innovation: generating more value and achieving higher levels of performance through continuous improvement and systematic innovation, by harnessing the creativity of stakeholders
6
Leading with vision, inspiration and integrity: having leaders who shape the future and make it happen, who act as role models in terms of values and ethics
7
Manage with agility: be recognized for their ability to identify and respond effectively and efficiently to opportunities and threats
8
Succeed through and thanks to employees: value employees and create a culture of empowerment to achieve organizational and personal goals
9
Sustain exceptional results: achieve sustainable exceptional results that meet the short and long term needs of all their stakeholders, within their operating environment
“
Creating added value for customers, acting positively on their direct environment, exploiting the creativity of stakeholders... these are all levers to be used to approach operational excellence
”
CURRENT TRENDS IN
SUPPLY CHAIN MANAGEMENT
1
The use of advanced analytics (Predictive and Prescriptive) as well as manufacturing process automation will continue to accelerate. This is to meet the needs of organizations looking to improve visibility throughout the supply chain and make operational execution more efficient through data-driven decision making. Investments in advanced analytics continue.
Advanced analytics & Automation
2
Technological advances are changing roles at all levels of organizations, bringing a level of sophistication that forces supply chain and operations professionals to adapt and requiring employee retraining. Data analysis skills are becoming a core competency for many Supply Chain and Operations employees. The amount of talent available today is slowing the rate of adoption of advanced analytics.
Talents
3
End-to-end supply chain visibility is a key objective for companies. Less than 5% of companies have visibility into their suppliers beyond the second level. Customers expect their suppliers to be able to track and trace products in near real time. The Internet of things (IUT), which is revolutionizing the supply chain and enabling ever greater collaboration across organizational boundaries, is a real asset in this regard.
Visibility
Key strategies deployed to build supply chain resilience include proximity hosting (localization) of suppliers and production, as well as supplier base expansion and supply chain regionalization. Healthcare companies have accelerated the regionalization of their supply chains over the past 12 months, while building inventory, including for critical products, as a short-term protective measure.
Resilience
4
5
Supply Chain and Operations agility through the adoption of a variable cost structure and innovation is essential to respond quickly to ever-increasing demand fluctuations and supply uncertainty.
Agility
The digitalization of the supply chain requires a large-scale implementation of identification sensors via the Internet of things. Artificial intelligence and machine learning will improve decision making, in conjunction with blockchain. This will need to be supported by state-of-the-art cybersecurity against potential threats.
Digitalization
6
7
Customer expectations continue to evolve and now include ethical and sustainable business practices. The supply chains able to manage rising customer expectations at the lowest cost will be the ones that come out on top.
Customer focus
Artificial intelligence and machine learning are paving the way for Industry 5.0, which will involve a more collaborative approach between humans and robot, will systematically promise customers interested in hyperpersonalization a tailored experience.
Artificial intelligence and machine learning
8
“
Mastering the entire Supply Chain and Operations is as much about technical skills as it is about knowing your digital and professional environment perfectly
”
EXPERTISE PER BUSINESS DOMAINS
EXPERTS
Philippe Stoufflet
Yves Moinard
Denis Bracqbien