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Historically highly profitable, the sector is now undergoing accelerated change in a context of economic pressure, increasing regulatory requirements, price/service competitivity on OTC products, deregulation and the rationalisation of public health devices.

Challenges

Facing these evolutions, pharmaceutical laboratories must continually improve service to their customers through the development/launch of new products or their improvement, and the development of service to the patient and the prescribers, taking advantage of digital capabilities. 

Laboratories must also continue to look for scale effects to reduce increasing costs of R&D through industrial or distribution synergies. Acquisitions must be integrated effectively, particularly concerning organisational structure, processes and IT. 

Companies need to be increasingly flexible whilst controlling costs; adapting the distribution strategy, improving demand steering and the collaboration model through controlling the balance between demand, inventory and industrial capacity, evolving the industrial model (decoupling points, delayed differentiation, campaign size), stock policy optimisation, production cycle reduction and the management of change controls.

How we can help

We help life sciences companies transform, from operations assessment to the implementation of improvement initiatives throughout the supply chain.

Operations strategy

  • governance and supply chain and operations organisation
  • make or buy and industrial footprint
  • reduction of catalogue complexity
  • carve out/post-merger integration

Operations digitalisation

  • real-time traceability via IoT (flows, transportation, parallel markets, temperature monitoring etc.)
  • demand forecasting
  • manufacturing process control
  • predictive maintenance development
  • APS system deployment

Economic performance and cost control

  • (re)design to value
  • efficiency of purchases/should-cost of packaging
  • industrial competitiveness
  • inventory reduction
  • SG&A reduction
  • cost to serve and logistics routes optimisation
  • governance and performance steering

Agility

  • NPI
  • planning chain synchronisation and execution: sell > replenish > produce > order
  • reactivity and industrial flexibility (MTO/MTS, production campaign size, security distribution and demand signal stabilisation)

Compliance

  • change control management
  • serialisation model choice and time to market control
  • release process
  • control of the master data

Collaboration

  • supply chain steering and APS deployment
  • interaction with the CDMOs: supplier development
  • collaborative planning with manufacturers
  • risk management of supply sources

Life sciences case studies

Worldwide & End-to-End Supply Chain Transformation : Ipsen

Worldwide & End-to-End Supply Chain Transformation : Ipsen

Ipsen is a major international specialty care life sciences company, experiencing exponential organic and external growth (x2 turnover in 5 years).

As most Ipsen products are lifesavers with few or no alternatives for patients, Supply Chain’s key mission is to never run out of stock while maintaining control over costs and inventories.

In order to support this mission in the high growth context, Ipsen’s Supply Chain needed to significantly ramp-up its Supply Chain capabilities.

Ipsen has therefore launched an ambitious, end-to-end Supply Chain transformation program (processes, organisation, IT tools) on a worldwide scope.

Our role

  • Prime consulting partner of Ipsen’s Supply Chain business, from framework to roll-out, on the full functional and geographic scope
  • Methodology and expertise lead for: framework, tool RFP, global design, detailed design and roll-out, change management
  • Support to all organisational layers during transformation, from sponsors to operational teams
  • Acting on results through creation of a Supply Chain training academy

Results

  • Successful roll-out of transformation within the ambitious timeline and budget
  • Upgrading of Supply Chain capabilities to support exponential growth of the company while delivering “no shortage” service level
  • Implementation of a best-of-breed planning system (Kinaxis’ RapidResponse)
  • Deep partnership between Argon & Co and Ipsen, providing increased flexibility to Supply Chain transformation roadmap

Logistics outsourcing: Pharmaceutical industry

Logistics outsourcing: Pharmaceutical industry

IPSEN is a pharmaceutical company with an ambitious growth project (Turnover: 2,2B€ in 2018, 3,2B€ expected in 2021).
In this growth context and with major external ongoing projects impact (such as Serialisation and Brexit), the company wants to set up a new warehousing hub with the leader of pharmaceutical logistics in France, CSP.

Our role

  • Lead negotiations and support contract writing with the logistics services provider
  • Secure the planning and the outsourcing project
  • Define the future organisation and the execution processes
  • Coordinate all project stakeholders (Ipsen, CSP and IT)
  • Identify impacts and mitigate risks on all pharmaceutical processes and ongoing projects

Results

  • Execution processes and organisation designed jointly with the logistics services provider
  • Negotiations lead, achieving 10% savings on logistics costs
  • Agreement reached upon a robust contract for Ipsen
  • 3-months ramp up planning and detailed transfer plan defined
  • Go Live secured

Design To Value : major French company in the pharmaceutical sector

Design To Value : major French company in the pharmaceutical sector

Design To Value : major French company in the pharmaceutical sector

Argon & Co worked with a market leading French laboratory.

A range of products has been developed bringing differentiating innovation to the market. If this range grows significantly in the coming years, regular price reductions of around 5% every 2-3 years are expected.
The implementation of a Design to Cost approach should allow to reach a new level in terms of competitiveness for this product range.

Our role

  • Apply an adapted, robust and proven methodology: framing via cost analysis and interviews, five brainstorming workshops, qualification of opportunities
  • Achieve significant and sustainable gains of 50% reduction in PRI. Broadly mobilise all the key departments concerned: Innovation and Development, Purchasing, Quality, Regulatory, Industry, Finance
  • Present qualified and quantified opportunities to COSEC for an immediate decision

Results

  • 41 ideas generated in 20 hours of brainstorming workshops
  • 19 opportunities presented in COSEC for a 26% PRI gain
  • 14 opportunities approved for a gain of 21%, 4 to be reworked for 4%
  • 5 scenarios for the development of the new project and 2 preferential tracks selected

Order to cash process improvement

Global biopharma

Order to cash process improvement

Bristol-Myers Squibb (BMS) is a global biopharma company focused on delivering innovative medicines to help patients fight serious diseases.

Following the shift of their business, financial, procurement, HR and IT services into a European above market capability centre, BMS was looking to standardise and optimise processes to improve operational efficiency and enhance the customer experience. The client needed our help to identify improvement opportunities in the end to end order to cash process.

Our role

  • Assess existing order to cash processes across 20+ EMEA markets
  • Benchmark processes against industry best practice to identify improvement opportunities
  • Evaluate and prioritise improvement opportunities to establish an implementation roadmap

 

Results

  • Identified 37 opportunities to improve operational efficiency and increase customer satisfaction
  • Workstreams prioritised based on a number of factors (complexity, benefits, impact, resources, strategic alignment)
  • Stakeholder buy-in across all levels
  • A manageable programme of 20+ workstreams  with a PMO to manage progress