What are the biggest barriers to end-to-end synchronization in your organization? What are the counter measures and solutions that have proven to be successful against these? What are the accelerators that helped overcome the challenges?
These were the main topics discussed during our Masterclass at the LogiPharma event conference held in Lyon, France; event that served as a prominent platform for industry professionals in the pharmaceutical and life science sectors.
LogiPharma brought together experts, thought leaders, and practitioners from various global organizations to discuss and address the evolving challenges and opportunities in the supply chain and logistics practice, with a focus on driving innovation, improving operational efficiency, and enhancing patient-centric strategies.
This report presents a summary of a poll conducted during the LogiPharma event, shedding light on attendees' perspectives and experiences regarding value chain synchronization in the pharmaceutical and life science industries.
What is ‘Value Chain Synchronization’ for Pharma & Life Sciences organizations?
Value Chain Synchronization serves as a platform for Pharma & Life Sciences organizations to enhance supply chain resilience while delivering greater value and improved standards of care to patients through flexible and responsive operational strategies. Additionally, it facilitates optimized decision-making among stakeholders and reduces lead times for product and service delivery to the point at which they are needed.
Going back to previous research by EFESO, it was highlighted that approximately half of Pharma & Life Sciences organizations reported to be making progress in Value Chain (VC) synchronization, with an additional 10% considering themselves relatively advanced in their initiatives.
However, the recent poll conducted during the LogiPharma Masterclass in Lyon indicates that practical implementation of synchronization remains challenging for most companies. Among the sampled companies, with 56% were classified as being at or below Level 2 maturity. At the more advanced levels of sync capability, only 1 in 7 companies claimed to be at Level 4 or higher.
During EFESO Masterclass ‘Building Resilient and Synchronized Value Chains In Pharma & Life-Sciences’ at LogiPharma, we explored with delegates the main barriers as to why organizations were being held back in their Sync progression. These barriers included:
- Silo thinking: hampering open communication and operational alignment
- Micromanagement: hinders strategic opportunities when discussions occur at insufficiently detailed levels or when stakeholders have differing expectations regarding specific details (e.g., forecast granularity)
- KPI confusion: Lack of alignment or understanding of the key performance indicators (KPIs)
- “Black-Box” or transactional relationships with external partners: making it challenging to build up trusted and “vested” relationships with CDMOs
- Lack of a well-functioning Sales and Operations Planning (S&OP) process: Many organizations faced challenges with obtaining commitment and contribution from Affiliates and Commercial teams for the Integrated Business Planning (IBP) process.
This is further exacerbated by Planning systems that do not deliver the desired results, for example, enabling agile discussions and decision making around scenarios.
The chart below highlights the main solutions and levers activated by companies.
Solutions to improve Value Chain Synchronization
Discussions during the LogiPharma masterclass, emphasized the significance of forming alliances beyond supply chain and collaborating with functions like Quality, Finance, and Commercial.
New governance and performance management systems were seen as helpful enablers, ensuring target outcomes align with overall business objectives and prioritizing access to real-time information.
Development and education of people in the organization were highlighted as crucial to better understand end-to-end ways of working as well as the consequences of silo orientated decisions and their potential impacts across the wider value chain. Basic foundations such as this and other change management elements are often overlooked Unsurprisingly, collaboration with external stakeholders was seen as highly relevant to achieving highly synchronized value chains. Several companies pointed out the importance of working differently with their CDMOs with the goal of establishing value-added ecosystems having a patient-centric focus and with mutually beneficial outcomes.
In conclusion, the discussions revealed that progress in Value Chain synchronization with practical implementation remains challenging.
As EFESO Management Consultants, we can provide valuable assistance in overcoming the barriers and challenges faced by organizations in achieving Value Chain Synchronization. From diagnose and assess, to journey synchronization and continuous improvement, our support doesn't end with implementation. With our expertise in supply chain optimization, operational excellence, and change management, EFESO Management Consultants can be your trusted partner in accelerating your journey towards achieving a highly synchronized value chain in the Pharma & Life Sciences industry.
We thank all the individuals and companies that contributed to our masterclass and poll at LogiPharma Lyon event.
Check-out the EFESO report “Breakthrough to Synchronization” to learn more about the techniques and levers that organizations are using to speed up their journey.
For more information contact EFESO Marketing
