Big Ideas in Supply Chain: A practical approach to the digital supply chain

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Good morning, everyone! I’m excited to chat with you today about a practical approach to the digital supply chain. There's a lot of buzz around digitization these days—blockchain, AI, machine learning—you name it! But I want to share some real-life experiences that will hopefully guide you on how to digitize your own supply chains.

Before we dive into the details, let me introduce myself. I’ve been fortunate enough to work for some amazing companies around the globe. You may recognize some of them; I kicked off my career at Unilever right after school, and since then, I’ve gained insights across four continents. This journey, particularly over the last six to seven years in the pharma industry, has shaped my understanding of supply chains. I initially came from the consumer goods side, but I transitioned to pharma with the intention of giving back. To me, getting the right drug to a patient at the right time is the most satisfying aspect of supply chain management.

As we all know, the pharma and life sciences industries are evolving rapidly. What we once considered “business as usual” is being completely rewritten. Can anyone else relate? Here are a few examples of the changes impacting our sector:

• Digitization of Medical Records: This seemingly straightforward move is radically shifting the healthcare landscape, giving patients more control and significantly influencing how we deliver services.
• Stricter Regulatory Compliance: The complexities of the regulatory environment mean that if a competitor faces scrutiny from the FDA, it can spike your demand unexpectedly.
• Emerging Markets Growth: With most growth happening in emerging markets, managing an intricate supply chain involving multiple sources from countries like China, India, and Egypt can be quite a challenge.

So how do we respond to this rapidly changing environment? My key learning is that a functional approach will fall short. Instead, we need a comprehensive business response that accounts for the entire organization. Here’s how I suggest we navigate this transition:

1. Top-Down Approach

Engage with senior executives and discuss the company's future. Ask vital questions:

• What innovations should we lead?
• How will we define our service value proposition?

This isn’t just a reactive measure; we are building for the future.

2. Align Supply Chain Capabilities

Identify the capabilities within the supply chain needed to support the company’s strategic intent. Develop a new operating model that reflects this strategic alignment.

3. People, Process, and Systems

It’s important to get the sequence right:

• Culture: Build the right culture within your organization.
• Capabilities: Ensure your team has the necessary skills and resources.
• Data Management: Clean data is essential for successful transformation. Without it—garbage in, garbage out!

Now, let’s talk about roadmaps. Many leaders overlook the importance of a well-structured roadmap for transformation. From my experience, this should be a multi-year program with numerous initiatives properly sequenced to avoid rushing through critical steps.

Here’s an example of an approach from a pharma company:

Case Study: Pharma Company Transformation

In order to succeed, keep in mind that supply chain transformations are inherently challenging. They intersect with every function of the company—and change is driven largely by human behavior rather than technology alone. Here are a few final takeaways:

• Drive change with the right strategy and the right people.
• Establish strong coalitions across functions.
• Don’t underestimate the importance of clean, comprehensive master data.

In conclusion, the future of pharma supply chains requires new behaviors and seamless cooperation across integrated teams. It’s not about competing as individuals; it’s about working together as one cohesive unit in an evolving world. Thank you for your time, and I’m happy to take any questions!

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