S O O T H I N G Y O U R S U P P LY C H A I N H E A D A C H E S

A L I F E S C I E N C E S & S U P P LY C H A I N B E N C H M A R K I N G S U R V E Y
 S O O T H I N G Y O U R S U P P LY C H A I N H E A D A C H E S
A L I F E S C I E N C E S & S U P P LY C H A I N B E N C H M A R K I N G S U R V E Y

“As supply chain

models change and
adapt, this is the
perfect opportunity
to benchmark our
supply chain strategy
with the best of
the best”
Andy Walker,
Head of Supply Chain Strategy,
Design and Delivery EMEA,
Merck
S O O T H I N G Y O U R S U P P LY C H A I N H E A D A C H E S
A L I F E S C I E N C E S & S U P P LY C H A I N B E N C H M A R K I N G S U R V E Y

Contents
Introduction

PT 1 | Challenges & Opportunities

PT2 | Requirements

PT3 | Investment & Growth

About LogiPharma

About WBR Digital

 S O O T H I N G Y O U R S U P P LY C H A I N H E A D A C H E S
A L I F E S C I E N C E S & S U P P LY C H A I N B E N C H M A R K I N G S U R V E Y

Introduction
The most successful pharmaceutical companies across the globe recognise that a
streamlined supply chain can add considerable value to their business’s bottom line. An
efficient supply chain is an effective differentiator, placing your brand at the head of the
pack in a competitive marketplace.

This report is designed for those who have their finger on the pulse of the industry –
inside you will discover responses to key issues raised to us by leading figures in the
pharmaceutical supply chain industry.

Created by the team behind the LogiPharma conference, we interviewed 100 senior
supply chain executives from large pharma companies across Europe. The job titles
surveyed for this report include: Vice President of Supply Chain Management, Global
Head of Supply Chain & Strategy, Director of SCM & Procurement, Head of Cold Chain
Logistics, amongst others of a similar standing.

Achieve End-To-End Visibility

PHARMACY
RAW
WAREHOUSE
MATERIALS

MANUFACTURING
PATIENTS
AND PACKAGING

ACTIVE
PHARMACEUTICAL WAREHOUSE
INGREDIENTS HOSPITAL/CLINIC

MATERIALS SOURCING MANUFACTURING DISTRIBUTION CUSTOMER

S O O T H I N G Y O U R S U P P LY C H A I N H E A D A C H E S
A L I F E S C I E N C E S & S U P P LY C H A I N B E N C H M A R K I N G S U R V E Y

Pt. 1
Challenges &
Opportunities
 S O O T H I N G Y O U R S U P P LY C H A I N H E A D A C H E S
A L I F E S C I E N C E S & S U P P LY C H A I N B E N C H M A R K I N G S U R V E Y

What is your number one priority

when implementing end-to-end supply
chain visibility?

y Working more closely with 43%

internal teams such as
commercial and
manufacturing
y Changing internal customer 22%
structure
y Building better relationships 22%
with suppliers
y Software and technology 13%

43% of respondents are seeking to work more closely with internal

teams to achieve end-to-end supply chain visibility.

End-to-end visibility is the key to demonstrating value in the supply chain.

Almost half of respondents believe it is vital that pharma companies work with
their manufacturing and commercial teams to streamline information from the
manufacturing stage right through to the customer.
 S O O T H I N G Y O U R S U P P LY C H A I N H E A D A C H E S
A L I F E S C I E N C E S & S U P P LY C H A I N B E N C H M A R K I N G S U R V E Y

Does your company have a supply

chain Centre of Excellence?
y Yes, we have Centres of Excellence for 13%
supply chain
y We have Centres of Excellence but not 29%
supply chain specific
y We are currently putting plans in place 37%
to introduce Centres of Excellence
y We are actively discussing introducing 18%
Centres of Excellence, but no plans have
been put in place
y No, we haven’t considered Centres of 3%
Excellence

97% of respondents have an interest in supply chain Centre of Excellence

Does supply chain contribute to improving

the bottom line at your company?

y It plays a key role 14%

y It’s not having a significant impact right 42%
now
y It’s important but it could be optimised 44%
further

All participants agreed that supply chain has the potential to exert
positive influence on their business’s bottom line, however, there is
an almost even split about its current efficiency at doing so.
Supply chain leaders are currently implementing new strategies in end-to-end
visibility, transparency and prioritisation. Our results suggest that there is a lot of
work still to be done in many organisations before supply chain is able to make a
significant, and a consistent, impact on the bottom line.
 S O O T H I N G Y O U R S U P P LY C H A I N H E A D A C H E S
A L I F E S C I E N C E S & S U P P LY C H A I N B E N C H M A R K I N G S U R V E Y

What is the biggest professional challenge

you are facing at the moment?
y 2016 y 2015

53%

39%

27%

19% 17%
13% 13%
9% 10%

2%
M hain gin

M ain er

In istr egy titiv

Ba an idin er

Ba an ting me
no ib
an f g

an f o

la ag g se

la ag r nts
c han

ch erg

m ov m

m e e
nc em ex rv

nc em eg
ag or po

ag oll r a

va uti to r
c

st om

pr sto

m u
in e ce ice

in e ul
tin on em
in a r rt

in ow cq

e
a
c

cu

re
g nt ll

g nt at
g ap fo

t e

g ch a

q
co v en

co v or
th id lio

th ing isit

th a in
e

e a io

i
st ers t

st ers y
e nn

r
su ly

su
pp

pp

e
ly

l
u

us

us
el
n

53% of respondents are focussed on innovation in the distribution

channel to remain competitive.
In 2015, 39% of survey respondents were struggling to balance cost
management and the need to provide excellent customer service. In 2016, this
focus has shifted to innovation as pharma supply chain executives seek to use
the distribution channel to remain competitive.
These results clearly highlight a current focus on meeting the needs of the
customer, whether this is by providing excellent customer service, or by
innovating in the distribution channel.
S O O T H I N G Y O U R S U P P LY C H A I N H E A D A C H E S
A L I F E S C I E N C E S & S U P P LY C H A I N B E N C H M A R K I N G S U R V E Y

Pt. 2
Requirements
 S O O T H I N G Y O U R S U P P LY C H A I N H E A D A C H E S
A L I F E S C I E N C E S & S U P P LY C H A I N B E N C H M A R K I N G S U R V E Y

How far along is your company

in implementing direct-to-patient
distribution channels?

y Fully operational – we have been distributing by direct-to- 15%

patient channels for over a year
y Fully operational – we started distribution in the last 17%
12 months
y We will be implementing it in the next 1-3 years 60%
y We are actively discussing it but there are no plans to 8%
implement just yet

32% of respondents have fully operational direct-to-patient

distribution channels
The development of direct-to-patient distribution channels has been a
continuing trend, and these results show its development. However, what is
perhaps more interesting is the 60% respondents who plan to implement direct-
to-patient distribution channels in the next one to three years.
 S O O T H I N G Y O U R S U P P LY C H A I N H E A D A C H E S
A L I F E S C I E N C E S & S U P P LY C H A I N B E N C H M A R K I N G S U R V E Y

How prepared is your company for the global

serialisation requirements outlined in the
EU Falsified Medicines Directive?

Very prepared – we have all of

our processes and technologies
in place
24%
Somewhat prepared, but we are
still developing our processes
and technologies
35%
Not very prepared, it would
be good to find out how other
companies are managing this
37%
Not at all prepared
- we need more
information
4%

59% of respondents in 2016 feel at least somewhat prepared for

global serialisation requirements.
Only 24% of respondents feel very prepared for the serialisation requirements
outlined in the EU Falsified Medicines Directive, despite the deadline for
compliance in 2017. Developing internal processes and sourcing the right
technologies will be of huge importance over the next year to ensure the
requirements are met.
 S O O T H I N G Y O U R S U P P LY C H A I N H E A D A C H E S
A L I F E S C I E N C E S & S U P P LY C H A I N B E N C H M A R K I N G S U R V E Y

Does your company need to change its global

network design to match a changing portfolio?
y 2016 y 2015

39%

34%
32% 32%

23%
20%

10%
7%

1% 2%
Ye ce lob

Ye oc lob

Ye han gn, ut i

N tw ee

N ortf gin
o

ot o
s, ntl a

s, es a

s, gi bu n p
re

pr ur g gn

c si p

ne e n oli

p an
ou rk o

at lio
w ng t
in y c l n

w so ln
ou esig

o esi

de een

th rtf

ch
r c de f o
e
e

al isn
fa h et

o
ar ou o p ce
ar f c etw
r
d

po

l – ’t
ur sig ur
ct an wo
g n

e r g la
e ha or

re n ch

ou
w ge rk

ac lo n
in n k

nt m an
e

r
g
tiv b s h
th gin
ha d

gl at g
o
e

el al

ob ch ing
ve

n la

y ne ave
di tw

al e s
sc o
g

us rk
sin
g

23% of respondents have recently changed their network design.

Here we can clearly see the shift as companies move from the planning stages
of changing their global network design to completion. However, for many
companies there remains a lot to be done.
Supply chain decisions are constantly being made to ensure the business
can fully capitalise on the demands of rapidly changing portfolios. In addition,
pharma companies are constantly making changes in order to best integrate
legacy infrastructure with new flows to meet the latest business requirements.
 S O O T H I N G Y O U R S U P P LY C H A I N H E A D A C H E S
A L I F E S C I E N C E S & S U P P LY C H A I N B E N C H M A R K I N G S U R V E Y

Should you use KPIs to help monitor

the performance of suppliers?

Yes absolutely, this has been

very effective for us

51% 37%
12%
In some situations, KPIs
can help with supplier
performance
Not at all, it damages
the relationship with
the supplier and is not
useful

More than half of organisations believe that KPIs are very

effective in monitoring the performance of suppliers.
The consensus on these results is not without contention, however. A significant
portion of respondents believe that KPIs and performance monitoring
can damage the relationship with the supplier, and therefore a balance of
performance management and relationship management must be reached.
 S O O T H I N G Y O U R S U P P LY C H A I N H E A D A C H E S
A L I F E S C I E N C E S & S U P P LY C H A I N B E N C H M A R K I N G S U R V E Y

Do you think your company should

collaborate with others to achieve
a more effective supply chain?

Yes absolutely – it’s important

to work with other pharma
companies to develop a more
51%
effective supply chain

Possibly, but it depends on the

situation 37%

No – supply chain should be used

to differentiate from competitors 11%

More than half of respondents are unequivocal about the importance

of collaborating to develop a more effective supply chain.
Clearly collaboration is an important part of the ability to create a more effective
supply chain. Respondents differed, however, on the situations under which
collaboration is appropriate, with 37% of respondents feeling that collaboration
is very much situational.
S O O T H I N G Y O U R S U P P LY C H A I N H E A D A C H E S
A L I F E S C I E N C E S & S U P P LY C H A I N B E N C H M A R K I N G S U R V E Y

Pt. 3
Investment
& Growth
 S O O T H I N G Y O U R S U P P LY C H A I N H E A D A C H E S
A L I F E S C I E N C E S & S U P P LY C H A I N B E N C H M A R K I N G S U R V E Y

Which region provides supply chain

with the greatest opportunity to influence
your company’s market access?
y 2016 y 2015

28%

31%
3%

19% Russia & CIS

24% 41%

17%

Eastern Europe

Middle East & 11%

North Africa

22% Asia Pacific

13%
9% 18%
6% 13%

Latin/South Africa
America
Rest of Asia

31% of respondents see the greatest opportunity

to influence market access in Eastern Europe.
In 2015, Asia pacific took the top spot worldwide as the region with the greatest
opportunity to influence market access capability. In 2016, the focus has moved
primarily to Eastern Europe, closely followed by MENA and the rest of Asia.
 S O O T H I N G Y O U R S U P P LY C H A I N H E A D A C H E S
A L I F E S C I E N C E S & S U P P LY C H A I N B E N C H M A R K I N G S U R V E Y

What do you think the number one

investment priority for meeting GDP
guidelines should be?
y 2016 y 2015

56%

41%

21%
18% 17%
13% 13%
11%
7%
3%
Ri d po

C w ce

Re rat vs.

In lut

In lut
on tr p

ve io

ve io
sk ad rt

as eg air.
an ans

ne rvi

st a

so

so
st ns

st ns
so an rov
as ap ati

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tr

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in

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lid sp id
se tin on

ss or . t

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at ort er
ss g ro

in fr ru

in

in
in a s

g eig ck
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ac

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g

tiv

ss
or n

d t – s.

iv
e
fin

ch

e
di

an
ng

gi
ut

ng
s e

ra
il

41% of respondents favour investment in active solutions.

The consensus around the most important investment priority for meeting
GDP guidelines is still fragmented – however the top spot in just one year has
moved from risk assessment and adapting transportation routes to a focus on
investment in active solutions.
Pharma companies often struggle to choose between the vast number of
temperature control tools and technologies available with which to meet the EU
GDP guidelines. Possibly as a result of limited budgets, active solutions are the
most popular solution for 2016.
 S O O T H I N G Y O U R S U P P LY C H A I N H E A D A C H E S
A L I F E S C I E N C E S & S U P P LY C H A I N B E N C H M A R K I N G S U R V E Y

Which one of the following changes is the

most likely to occur in 10 years’ time?
y 2016 y 2015

38%
33%
30%
26%
24%
20%
17%
12%
Su ill h ter ac

Su uc ct om

Di har ifica

Su ore iali t
re m n
pp av inf ces

pp h m on pa

pp se ze
w rea et

m pa e c

p gn

m c c
ct ac tly
ly e a lue s

ly o th ny

ly gm d a
g ark

im f th

si

sp od
to y d m
ch m nc

ch re e b

ch e cc
e
m

pr
ho is or
ai uc e

ai sig o

ai nt or
n

ns ed di
sp trib e c

u
w nifi tom

ita ut om

w a ng
ill ca

ill nd to
l a ion m
ha n lin
h on

be
nd w o
ve t

fa
a
t

r
ill n
be
e

38% expect supply chain to have a much greater impact on the

bottom line of the company.
The biggest predicted change for 10 years’ time is that supply chain will have a
much more significant impact on the bottom line of the company.
Additionally, compared with 2015, there was nearly a ten percent rise in the
amount of respondents who expect direct-to-hospital distribution to become far
more common.
Senior supply chain professionals are currently working on strategies to add
value to their business – including implementing end-to-end visibility and taking
a more customer-centric approach.
 S O O T H I N G Y O U R S U P P LY C H A I N H E A D A C H E S
A L I F E S C I E N C E S & S U P P LY C H A I N B E N C H M A R K I N G S U R V E Y

About LogiPharma

LogiPharma is the longest-running supply chain event celebrating its 16th consecutive year in 2016. Since
its inception thousands of supply chain professionals from the top pharma, generics and animal health
companies took their careers to new levels by learning new skills and making new contacts.

Over the years the LogiPharma network of past attendees has grown and grown providing those new to
the event access to the most senior pharma supply chain leaders for unique professional development
opportunities.

Meet and benchmark with your peers: 30+ hours of networking, learning and practical takeaways
from case studies, round table discussions, topic driven lunches, seminars, and more.

A programme designed alongside an Advisory Board of leading supply chain executives

Get insight into strategies from across the globe: 50+ countries in attendance

Network with your peers in an informal setting at our drinks and networking receptions

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About WBR Digital

At WBR Digital we design and execute bespoke content marketing campaigns all year round, delivering our
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We believe in creating rich content that engages and inspires. We conduct in-depth industry research, then add
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It’s industry research, it’s thought leadership, it’s quality content – it’s the perfect opportunity to generate
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Contact us to find out how your business could benefit from:

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Contact:
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Digital Sales Director
Tel: +44 (0)20 7368 9383 | Email: chamatkar.sandhu@wbr.co.uk