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INTRODUCTION,MAKING THE MOVE,TO DIGITAL, Many factors are influencing the move to digital supply In addition to these macro industry. trends specific triggers are also, networks in the Life Sciences industry Several found across all sectors of the. important disruptions related to socio economic Life Sciences industry biotech. scientific and digital advances as well as necessary distributors specialty generics and. medical devices which are further,changes to business models are occurring across. intensifying the urgency of a, the life sciences landscape See Figure 1 The following digital supply network. factors are resulting in a total change in how the The complexity and specificity. industry and its value chain operate of products and patient therapies. are increasing driving up costs, Socio economic factors are Global expansion is accelerating and lead times.
influencing the way that therapies for generics while specialized The bar is rising on patient. and related services are delivered products are being carefully service level expectations This. to patients and caretakers released in highly developed trend requires an increasingly. markets only sophisticated delivery model,Groundbreaking research scientific. raising the cost of capital and,advancements,Cloud customer and specialized. Cloud provider Digital enablement has empowered,elevating levels of excess and. medicines are expanding the the industry with richer patient. obsolete product, breadth of therapies available insights created new business. to patients models and completely disrupted,the traditional paradigm for.
delivering health outcomes,FIGURE 1 Macro industry trends affecting change. SOCIO Healthcare Silver Tsunami Outcome based, ECONOMIC spending rising Chronic disease reimbursement. DISRUPTION faster than GDP, SCIENTIFIC New product Patent cliff leading New science leading. DISRUPTION launches driving to the rise of to the rise of. growth generics globally specialized medicine, DIGITAL Digitization cloud Consumerization Big Data. DISRUPTION IoT wearables of the patient advanced analytics. genomics AI,BUSINESS The outside in M A new The pivot to.
MODEL enterprise business models the patient,DISRUPTION. 2 Delivering at the Speed of Business Digital Supply Networks in Life Sciences. Most companies are moving rapidly The extent of change required to ACCENTURE RESEARCH INDICATES. toward personalized therapies and prepare companies to succeed in THAT FOR A 10 BILLION DOLLAR. advanced patient services such as this new world requires more than PHARMACEUTICAL COMPANY A. home patient care and immuno a minor upgrade Organizations that. PARTIAL DIGITIZATION STRATEGY, therapies disrupting the traditional simply tweak their models are running a. supply chain For example one huge risk A new mindset is required LEVERAGING THE END TO END. recent Accenture survey1 of patient to deal with the complexity of this CAPABILITIES OF A DIGITAL SUPPLY. services executives found that 95 new supply chain environment and NETWORK ENABLES UPWARDS. percent intend to invest in patient to capitalize on the market potential OF 387 MILLION IN COST. engagement technologies over that it unlocks TAKEOUT IN THE MANUFACTURING. the next 18 months The resulting,AND SUPPLY PROCESS. pressures on the supply chain are The good news is that there are. intensifying and necessitate dramatic clear and viable solutions available. REPRESENTING A SIGNIFICANT, improvements in performance Companies that are able to adapt LIFT TO OVERALL EBITDA. and enhance their supply chain, capabilities to create a digital The opportunity is there and digital.
supply network have tremendous leaders in the industry are already. opportunities to capture market capitalizing on the value potential. share increase overall profitability across each of the areas shown in. and manage risk more effectively Figure 2, FIGURE 2 Partial digitization strategy EBITDA potentials per digitization lever. 10 billion pharmaceutical company,MARKETING RESEARCH MANUFACTURING. 359M 116M 387M,SALES DEVELOPMENT SUPPLY,3 INCREASE. eDetailing Digital Sales,Rep Enablement,02 Analytics based Marketing. Insight Generation,06 Scientific Collaboration 09 Sourcing Process.
26 Automation,Platforms Open Innovation,03 Digital Marketing Content. Management,10 Analytics based,24 INCREASE, 07 Analytics based Virtual Collaborative SC Planning. Screening Simulation 80,04 Internal Marketing Sales. 116 in silico,Collaboration Platform 11 Digital enabled Mfg. Asset Management,05 Customer Information,37 08 eLabeling for Clinical.
10 12 Supply Chain Cockpits, Self Service Enablement Supply Logistics Platforms 43. SUPPORT FUNCTIONS 105 million dollars, Source Derived from a detailed Accenture Strategy study completed in June 2015 entitled Value Creation through Digitization in the Pharmaceutical Industry led by. Jan Ising Clemens Oertel Christine Knackfuss and Isabelle Heiber Excerpt from Jeff Elton Anne O Riordan Healthcare Disrupted iBooks. A CALL TO ACTION,USING DIGITAL,SUPPLY CHAIN,TALENT SCARCITY. Most of the operational skills in supply chain today. seem to be specific to a function Life Sciences,companies need a workforce with the ability to. understand end to end dependencies the associated, How do these trends and disruptions financial and operational impacts of decisions across.
potentially affect the performance functions and the ability to analyze information. across functions,of the life sciences supply chain The. following supply chain issues persist THE DIGITAL RESPONSE. or are being amplified due to the Introducing new skill sets into the traditional supply. industry trends Digital leaders chain talent pool is key e g Data Scientist vs Engineer. vs Technologist Leveraging the new on demand or, understand the value potential of liquid talent service models can help companies. leveraging a digital supply network obtain the differentiated skills needed to succeed in. a timely manner,as a competitive differentiator to turn. these issues into advantages,TALENT SCARCITY,LACK OF VISIBILITY. INEFFICIENT FULFILLMENT MODELS,INFLEXIBLE TECHNOLOGIES.
POOR RESPONSE TIMES,CONFLICTING PRIORITIES LACK OF VISIBILITY. Current technology and processes limit end to end, supply chain visibility at order product or shipment. levels This situation results in inaccurate supply chain. plans higher fulfillment costs and an inability to sense. problems as they occur and then resolve them quickly. THE DIGITAL RESPONSE,The digital supply network leverages the broader. ecosystem of information from all sources across the. value chain This creates a rich visibility and analytics. network increasing the accuracy of supply chain,planning streamlining distribution operations and. creating a sense and respond model for proactive,exception handling.
4 Delivering at the Speed of Business Digital Supply Networks in Life Sciences. ISSUE ISSUE, INEFFICIENT FULFILLMENT MODELS POOR RESPONSE TIMES. Most companies fulfillment models are too static Companies are experiencing accelerating volatility. Leaders are struggling to manage the cost and in planning and execution. complexity of the new world Traditional distribution Long term planning faces new challenges while. and transportation models have been created to support short term execution issues take more and more. high volumes and fewer SKUs But these models can resource time. also prove to be inflexible and inefficient when extended Companies find it difficult to create seamless. to individual customized orders wider product coordination between functions and to share. assortment and multiple last mile delivery options information on a real time basis between commercial. supply and distribution processes,THE DIGITAL RESPONSE. Automated touchless delivery services are being THE DIGITAL RESPONSE. introduced to provide the right level of service Leveraging real time information and unstructured. specification to support highly sensitive pharma data to proactively respond to accelerating volatility. biologic and medical products These types of digital in planning and execution. fulfillment models will continue to expand with the. Increased precision of mid and long range planning. heightened demand for personalized services and the. through advanced analytics enables more proactive,need to scale to meet market change. short term operations and service specificity,to customers. Seamless coordination between functions through,single source platforms to share information on a.
real time basis,ISSUE ISSUE,INFLEXIBLE TECHNOLOGIES CONFLICTING PRIORITIES. Legacy technology platforms created around supply Each supply chain function has its own priorities and. chain functions or silos are considered time consuming performance metrics These need to be aligned with. costly to deploy and inflexible to extend making other functions overall supply chain objectives and. it difficult to address the growing needs of today s business outcomes. supply chain,THE DIGITAL RESPONSE, THE DIGITAL RESPONSE Within a digital supply network end to end visibility. Digital leaders are quickly moving toward cloud based and connectivity enable performance measurement in. interoperable technology platforms These provide line with broader business outcomes with a priority on. more flexible solutions that can more easily scale to business value and customer or patient service. the changing dynamics of the supply chain and the,CREATING A DIGITAL. SUPPLY NETWORK,UNDERSTANDING THE BASICS, A digital supply network represents Digitization will converge traditional. processes organization structures supply chain elements into supply. and technologies that enable a chain networks The resulting digital. seamless frictionless planning and supply networks will be a seamless. execution function that can manage integration of talent physical. the supply chain end to end information and financial supply. chains See Figure 3, FIGURE 3 Evolution of digital Life Sciences supply network.
Examples of Convergence,Talent Mobility Information Cloud. Supply Chain Supply Chain,TECHNOLOGIES DIGITAL,LIFE SCIENCES. SUPPLY CHAIN,Social Media Physical Analytics Financial. Supply Chain Big Data Supply Chain,Source Accenture. 6 Delivering at the Speed of Business Digital Supply Networks in Life Sciences. As shown in Figure 4 the move to What are some inhibitors to creating Leveraging disruptive technologies. digital requires new business models a digital supply network Most life and building a digital supply network. that incorporate service and are sciences companies are still structured means breaking down these traditional. closer to the customer There must according to function That perspective functional barriers and instead. be multiple supply chain models tends to separate multiple planning focusing on integrated services that. instead of just one At the same and execution areas design sell drive value across the enterprise. time although the shift to a digital plan make source deliver return. supply network is a comprehensive and results in competing priorities. change it is still founded on the same across the time horizon of the. supply chain fundamentals of service value chain,inventory and cost.
Cloud customer Cloud provider, FIGURE 4 Digital is enabling new supply chain capabilities. ANALOG DIGITAL, SHIFT TO NEW BUSINESS Product Product Service Hybrids. OPERATING MODELS Focused Connected Value Chains,GROWTH FOCUSED Operational Top Line Growth. Efficiency Operational Efficiency,NEXT GENERATION Limited Always Connected. CUSTOMER EXPERIENCE Touch points Multiple Touch points. SEGMENTATION One Size Differentiated Policies,STRATEGY Fits All and Programs.
VOLATILITY,The Fundamentals of Supply Chain Remain the Same. SERVICE INVENTORY COST,Source Accenture, Think of organizations responsible Digital supply networks leverage Figure 5 depicts the top three tenants. for demand and supply planning cloud based platforms and control of a control tower necessary to run a. deployment and transportation or tower set ups In this way they connect supply chain By introducing digital. order management and customer scale and ultimately integrate data capabilities into this model artificial. service These types of integrated from multiple sources such as end intelligence cloud analytics mobility. services organizations are being further consumer devices multiple points of social a company may be able to. integrated creating a more seamless sale and internal and external data break down the walls of traditional. services engine to support the warehouses Although the concept supply chain functions Demand and. changing environment of control towers has been around supply planning can be combined. for years Accenture views the new to focus on true network planning. approaches to control towers as core Customer service and order. to a digital supply network Control management can be managed. towers provide overarching supply as one function deployment and. chain visibility and analytics while transportation can be managed as. helping to enable end to end supply one function etc. chain transformation, FIGURE 5 Integrated supply chain operating model example

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