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What are the benefits of an integrated pharma-
The potential payback from using Integrated Logistics Networks is well documented in other industries. For example, in the construction industry, cost savings of as much as 40% have been claimed against implementation costs of just 1%.
Many other industries have reported similar gains, notably the automotive, petrochem, electronics, retailing and aerospace industries. Even companies in ‘traditional’ industries such as steel have taken significant steps to realign their supply chains to secure their position in tomorrow’s first division.
The potential benefits of being part of an integrated pharma-
In age of increasing production and distribution complexities, the phrase "companies don't compete, supply chains compete" has never been truer. As global competition intensifies, a company's competitive position in the market increasingly depends on its supply chain provisions and expertise. This why a fully Integrated Logistics Network can confer a huge competitive advantage on all its participants. Bring part of a secure, strategically-
The identification and elimination of non-
With early supplier involvement (ESI) and a value-
By adopting true collaborative working with its attendant incentives and reward sharing, logistics partners can secure the work-
By working with integration-
In many cases, the creation of an Integrated Logistics Network will permit a substantial rationalisation in the number of logistics suppliers. This results in a commensurate reduction in the associated supplier costs and an opportunity to leverage spending to greater effect. In addition, suppliers will be in a position to offer meaningful discounts in return for a guaranteed volume and continuity of work.
REDUCED COSTS AND TIME FOR PREPARING RFPs
Relying on endless rounds of RFQ/RFP invitations is very inefficient on both sides. It takes a lot of resource to rigorously analyse incoming bids and the cost of preparing these bids can be an expensive and time-
However, with an Integrated Logistics Network there is not only significant potential to reduce or eliminate bidding costs there is also scope to reduce 'back office' transactional and administration costs and to eliminate paperwork. In this way, for example, the electronics giant IBM managed to shave more than $6bn from its global supply chain costs.
There are considerable benefits of using the combined experience and expertise of the entire supply chain from the outset. Manufacturers of thermal packaging and pharma-
Furthermore, the gains from integrated working are not one-
A lack of supply chain transparency is frequently cited as a major barrier to efficiency in the pharma cool chain. However, reduced demand variability and optimised resource utilisation from the sharing of demand data and demand forecasts between network partners are examples of how savings can be achieved from smart information exchange.
Traditional 'them and us' commercial relationships see information as proprietary knowledge and opposing parties use it as a bargaining chip in win-
However, by opening up communications and sharing information, an integrated pharma cool chain can generate huge across-
Note that data is only of value once it has been interpreted and translated into meaningful information that can be used to facilitate decision-
Wastage, in both material and human terms, is endemic to many industry sectors and pharma-
Labour duplication, labour overlap and poor labour productivity are other inefficiencies that are prevalent in fragmented supply chains. An integrated logistics chain, on the other hand, can be incentivised to reduce waste, synchronised to eliminate unnecessary manpower duplication and marshalled to stimulate end-
In practice, innovation in logistics has always been constrained by two factors. Firstly, the culture of cost-
However, greater levels of innovation especially in the fields of standardization and modularity are needed if pharma logistics is to prosper and progress. Leveraging the ideas, expertise and resources of the entire logistics chain will invariably lead to innovative solutions and bring substantial improvements in performance and meaningful reductions in costs. In some industries overall costs savings as high as 40% have been achieved simply by harnessing the early-
In January 2012, the U.S. Food and Drug Administration approved Kalydeco, the first drug to treat the underlying cause of cystic fibrosis, after just three months of review. It was one of the fastest approvals of a new medicine in the agency’ history. Similarly expedited approvals are under way for the treatments of Ebola and other pandemic threats. The transport of these life-
However, with an Integrated logistics network every aspect of the transportation process is analyzed and streamlined to eliminate redundancy of effort, minimise pipeline inventories and reduce cost. The net result of logistics supply chain integration is not only to reduce outlays but also to increase the speed and quality of delivery.
An integrated approach is a means of accelerating in-
In an Integrated Logistics Network, all participating partners will share the risks and share the rewards. This contrasts with a traditional 'master-
Claims and disputes are inevitable in business, but they are much less likely to arise in a relational system based around trust, mutual understanding and a ‘no blame’ collaborative environment. An integrated logistics network will have agreed dispute resolution procedures in place so that when problems do occur they can be resolved quickly and amicably, without permanent harm or resort to ruinously expensive litigation.
Notwithstanding its exceptional regulatory oversight, the pharma-
While most pharma manufacturers are coy about the extent of their losses, as GDP enforcement becomes more pervasive such losses are going to escalate unless concerted actions are taken. Collective and coordinated action throughout the entire pharma-
Similarly, a programme of compliance with demanding serialisation and track & trace standards will be greatly facilitated when conducted within the framework of an Integrated Logistics Network in which an inherent level of mutual trust, visibility and accountability already exists.
Consider this scenario: extremely complex, multi-
In an age of people-
An integrated logistics network, with its inherent risk-