INTEGRATING PHARMA LOGISTICS
Copyright © PartnerSave Ltd 2016 All rights reserved
This relates to the processes, procedures and organisational structure that must be adopted and enacted within each of the integrated network participants.
There are four inter-
This is the business culture that must operate right across the integrated network. It forms the cultural backdrop to all commercial relationships and activities.
This is the internal corporate culture within each individual network company. The management and staff must be fully aligned to collaborative principles and working methods.
This refers to the cross-
Modern B2B procurement methods have embraced the formation of integrated supply chains where the parties in the supply chain have a long-
At the heart of such an approach lies an array of principles that govern the nature and substance of the collaborative relationships. Some of these principles are absolutely fundamental to the creation of a integrated network, others are optional or aspirational. But in all cases there needs to be fundamental change in both attitudes and practices at both the individual company level and throughout the integrated network.
These fundamental principles of integration must be adopted in order to create the four inter-
The rationale behind supply chain integration is fairly easy to grasp and the majority of astute business people have little trouble in subscribing to its basic principles.
Deciding to work collaboratively or confrontationally is a simple choice between achieving a goal through peaceful or aggressive means. Most people, including business executives, will instinctively favour the former. However, although a tendency towards mutual reciprocity may be hard-
Genuine commitment from top management
A truly collaborative environment has been described as one that “involves every employee at every level and department, and is infused in an organization’s culture and reflected in its daily operations”*. Strong executive-
Functional management at all levels must be equipped with the necessary skills and communications media to drive and embed collaborative outcomes throughout the organisation. Departmental 'silo' mentalities must be eliminated and collaboration must become an integral part of people's jobs. Managers must be seen as role models and lead by example. They must also be deemed responsible and accountable for driving the collaborative philosophy. Integration must be embraced at both a strategic and a tactical level.
In the modern world, people can struggle to develop trust in others and, in any case, there will always be a potential conflict between self-
The building of trust results from a continuous learning process and will always develop slowly at first, as individuals start to see the benefits acrue, before picking up momentum. The conditions for trust can be encouraged by demanding consistently high standards of co-
For supply chain integration to be more than just a conceptual distraction there needs to be a wholesale adoption of collaborative attitudes. A collaborative culture invariably involves the pursuit of 'Common Goals'. Leadership must establish, and maintain, a common vision with an absolute focus on the endpurpose.
This must be based on a clear understanding by all employees of what represents performance and value for both the client and the ultimate end user. All employees must fully understand how their input contributes to the business goals and how a win-
It is essential to nurture an environment of continuous learning and mutual trust where best collaborative practice can be developed, utilised and shared by all.
It is essential that everyone in the company is proactively involved in the pursuit of cultural shift and in the adoption of a new collaborative mind-
To bring sustainable benefits, collaborative working has to become the corporate way of life. It cannot be seen as just another 'two-
Consensual decision making
Democratic decision making is a fundamental component of collaborative working. In a truly collaborative environment everyone has a voice and their contributions are welcomed, leading to high levels of worker engagement.
Measurable Internal Goals
Measurable internal goals must be agreed that are challenging yet realistic. and attainable, yet, attainable internal goals must be and then constantly relate progress by the project to this vision to reinforce the team’ goal.
Although they are related concepts, collaboration and communication are not the same thing. However collaboration cannot take place without communication, and effective communications, up, down and across the organisation are absolutely essential for the dissemination of the collaboration message -
Equally, an effective communications programme will be two-
Full Staff Participation
Comprehension of partnering principles and dedication to integrated working throughout the company.
* Kip Kelly / Alan Schaefer: Creating a Collaborative Organizational Culture; UNC Kenan-
Collaborative Principles and Practices that apply to COMPANY Cultural and Functional Environments
Collaborative Principles and Practices that apply to NETWORK Cultural and Functional Environments
An integrated pharma-
The entire network must be fundamentally driven by a common agenda, unity of purpose and shared, measurable, success metrics. All partipants must be aligned with market demand and trading conditions and focused on mutual goals that have been derived from the needs of the ultimate consumer.
A shared vision is a means of promoting the mutual trust which is a sine qua non of any true collaborative Network. "Trust between partners in inter-
Early Partner Involvement
The early involvement of suppliers and high level of mutual commitment has its roots in the automotive industry where its potential to mitigate risk, accelerate innovation, improve quality, boost efficiency and performance, resolve problems and control costs has long been recognised. Similarly, the involvement as early as possible of all key members of the pharma-
The Network Principal and all the Network members must be prepared to commit to long-
It is essential to nurture an environment of continuous learning where best collaborative practices can be developed, utilised and shared by all.
There is a need to create a climate of open communications and data-
All shared data and content must be kept within the Network community and be easily accessible to all members subject to the necessary Proprietary information, IP rights
Consensual Decision Making
As collaboration will involve taken relatively narrow perspectives and making them broad, you will need to help the group reach a consensus and then take action collectively on the decisions they make
Democratic decision making is a fundamental component of collaborative working. In a truly collaborative enviironment everyone has a voice and their contributions are welcomed, leading to high levels of engagement.
An environment of continuous learning and improvement must be nurtured where best practice can be utilised, developed and shared by all parties.
Network Partner Selection
Network partners must be selected on, inter alia, their collaborative propensity, their commitment to quality, innovation, value, risk management, whole-
Fractional partnering, at best, will be significantly sub-
A clearly defined network strategy that sets out unambiguously the aims, objectives and long-
Agreed, measurable and realistic performance indicators as the basis for continuous learning and improvement. Regularly undertake performance evaluation to understand how performance has changed in time and how it compares with industry norms. Adopt client-
Modern Commercial Arrangements
Reward system based on target cost or target price with shared pain/gain incentivisation. Adopt commercial arrangements that underpin all the above principles: collaborative forms of contract, risk management and risk sharing, incentivisation such as open book cost management, target cost with pain-
Formal and informal communications and transparency between all parties.
Network Dispute Resolution
No blame: See mistakes as learning opportunities. Focus on fix, not fault. Take responsibility for own actions.
Common Network Processes and Tools
Replace company and endeavour-
* McNamara M , Starting to untangle the web of coopration, coordination and collaboration, IJPA 2012
The successful ingredients of a collaborative relationship
Kim Newman, Partnering and Partnering Forms of Contract 2010