Contract Manufacturing Organizations expansion has made the supply chain harder to manage for both life sciences companies and contract suppliers. Advanced digital technologies can enable a new era of supply chain collaboration. Visit https://accntu.re/2UVVP9F to learn more.

1. Patient Inspired. Outcomes Driven.
DARETOBE
DIFFERENT
Revamping collaboration in life
sciences contract manufacturing

2. The life sciences industry is transitioning as it
shifts toward complex biopharmaceuticals
and highly personalized medical therapies
and devices.
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this shift is driving more complexity in
supply chain operations.
AS A RESULT,

3. How are brand owners and CMOs addressing
the complexity?
Copyright © 2019 Accenture. All rights reserved. 3
Accenture surveyed senior executives from various functions across 105
pharmaceutical, medical device and contract manufacturing companies to
identify the challenges and find out more about how they plan to address
today’s supply chain challenges.
HOW WILL THEY DARE TO BE DIFFERENT?

4. of manufacturers plan
to expand use of CMOs
Externalized manufacturing will keep expanding
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of CMOs plans to
increase capacity91% 78%
NEXT 3 YEARS:
One in five brand owners
now work with over 100
external partners
Companies are lacking
visibility, control, and
standardization

5. Biopharma companies plan to take advantage of
CMO capacity expansion across multiple new
science therapeutic areas
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CMO areas of expansion
within the next 3 years:
Currently
leveraging
Planning to
leverage in the
next 3 years
API Production79%
Packaging71%
Formulation67%
Development67%
Brand Owner Usage of CMOs

6. The medical device industry will continue to
grow CMO capacity to build smart devices
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CMO areas of expansion
within the next 3 years:
Currently
leveraging
Planning to
leverage in the
next 3 years
Diabetes86%
Diagnostics71%
Cardiology,
Orthopedics, Radiology57%
Imaging, Surgery,
Nephrology43%
Pediatrics, Respiratory,
Dental, Vision29%
Neurotechnology14%
Brand Owner Usage of CMOs

7. Where is the pressure coming from?
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LACK OF
standardization
and capabilities
across large
number of CMOs,
increasing
operational
complexity and
costs
DISPARATE
planning and
execution slows
decision making,
leading to supply
shortages &
increased
inventory
LACK OF
real-time
visibility to
manufacturing
operations,
leading to higher
supply chain cost
DELAYS
in tech transfers
and supplier
on-boarding,
reducing speed
to market
REDUCED
product quality
due to poor
data integrity
and latency of
information
exchange

8. Where does better CMO and brand owner
collaboration start?
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PRODUCT DEVELOPMENT
Both plan to improve
their product development
processes.
QUALITY MANAGEMENT
Both want to improve
collaboration within their quality
management processes.
MANUFACTURING
Brand Owners have limited visibility
and control over CMO product
manufacturing and quality.
PRODUCT SUPPLY
CHAIN PLANNING AND
CAPACITY MANAGEMENT
CMO’s and Brand Owners
want to plan and manage
their supply chains more
proactively.
TECH TRANSFERS
This is the key challenge for
CMO’s working with pharma
companies.

9. Brand owners and CMOs expect digital
technology to improve collaboration
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BRAND OWNERS CMOs
Currently using Planning to implement
in the next 3 years
Currently using Planning to implement
in the next 3 years

10. EMBRACE A NEW ERA OF CMO
COLLABORATION
Where to start: A four-step approach to rethink
external manufacturing collaboration
Copyright © 2019 Accenture. All rights reserved. 10
Identify sponsor and
define business case
01
Define collaborative
roadmap to pilot, then scale
Co-invest with partners
on strategic innovation
Monitor performance
and enhance
02
04
03

11. 11
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