Answer to Question 1
There is a glaring need for managing their supply chains more efficiently and effectively along with better execution. Discussion with key executives noted a need to change their strategy from a push approach to a pull strategy. The push approach has led to overstocks of some SKU's and stock-outs of others with consequent higher inventory costs and perhaps lost sales. There is also a need for their supply chains to be more responsive to demand signals in a timely manner.
Another needed change is more collaboration with suppliers, customers, and logistics service providers. In the past, Pharmaceutical companies could essentially dictate and control what happened in their supply chains. Participants in the supply chain were usually not considered to be partners or needed collaborators. Valuable information and potential innovations were probably squandered along the way. As has been pointed out in recent years, supply chain collaborators and partners often provide half or more of the innovative changes that lowered cost and/or improved service.
Another need is for improved information flow and management as well as more visibility along the supply chain. This is a necessary ingredient for improved decisions in logistics and transportation. Too frequently, data has been incomplete or incorrect resulting in higher cost and/or ineffective customer service. Timely and accurate Information flow is important and is a necessary part of improving Pharmaceutical supply chains and the financial viability of the industry.
Answer to Question 2
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