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Accenture Life Sciences
Rethink Reshape Restructure…for better patient outcomes
Push to Pull: From Supply Chains
to Patient-Centric Value Networks
Changing patient
needs
Increased
competition
Increased
regulatory controls
Increased costs and
inventory levels
Expansion into
emerging markets
New therapies,
devices and products
Frequency of mergers,
acquisitions and divestitures
Expired patents and less
profitable product extensions
2
The traditional life sciences supply chain can’t keep up with the
industry challenges and opportunities
Copyright © 2015 Accenture All rights reserved.
Reasons
for this
situation
Add it all up and it means that the
traditional supply chain model must
evolve. A dynamic, sense-and-
respond market and patient-centric
supply chain is now needed as a
core prioritized strategic capability.
Copyright © 2015 Accenture All rights reserved. 3
4
How does a patient-centric value network operate?
Copyright © 2015 Accenture All rights reserved.
A patient-centric model senses demand, and also shapes
demand, across the healthcare ecosystem at a granular
level − translating the analyses of patient and treatment
data into insights, patterns and signals that indicate what
supply-side products and services are needed, when
and where.
This kind of network requires new levels of integration
between the supply chain organization and commercial
and financial processes.
5
What prevents most life sciences companies from delivering on
a patient-centric supply chain?
Copyright © 2015 Accenture All rights reserved.
Accenture research, June and July 2014 The Accenture 2015 Supply Chain Control Tower Study is based on a cross-industry survey of more than 500 C-level
operations and supply chain executives at companies with revenues greater than $500 million across the Americas, Europe, and Asia-Pacific.
A lack of focus on end-to-
end processes and
operational excellence
A siloed, functionally
compartmentalized
approach that leads to
inflexible and inefficient
operations, processes,
facilities and infrastructures
Inadequate visibility,
transparency and trust
across the healthcare
ecosystem hinders
collaboration and
alignment
6
What prevents most life sciences companies from delivering on
a patient-centric supply chain?
Copyright © 2015 Accenture All rights reserved.
Accenture research, June and July 2014 The Accenture 2015 Supply Chain Control Tower Study is based on a cross-industry survey of more than 500 C-level
operations and supply chain executives at companies with revenues greater than $500 million across the Americas, Europe, and Asia-Pacific.
A lack of focus
Accenture supply chain research and experience bear out these challenges:
31%
respondents say that a limited
ability to translate data into
business insights was a major
obstacle to implementing an
effective supply chain strategy.
cited the lack of a coherent,
“one source of truth” for data
as a major constraint to end-to-
end capabilities.
19%
Almost every finding pointed back to the same challenge: poor visibility to the
information necessary to make critical, end-to-end supply chain decisions.
Siloed approach Inadequate visibility
7
Patient-centric value network example
Copyright © 2015 Accenture All rights reserved.
http://www.cio.com/article/2385814/big-data/how-to-profit-from-the-ultimate-big-data-source-the-weather.html
Merck, former manufacturer of the Claritin
allergy medication.
Using Big Data capabilities, Merck analyzed specialized
weather forecasts to predict when allergens were likely
to be especially prevalent.
Merck shared this weather intelligence with Wal-Mart
to correlate it to customer behavior by US ZIP code.
The analysis was augmented by social media comments
about allergies within patient communities.
The result: Better availability of Claritin at stores near
those ZIP codes just when allergy sufferers needed
it most.
A significant decrease in inventory and working
capital costs.
Three keys to successful implementation
8Copyright © 2015 Accenture All rights reserved.
Look for and translate the insights that improve
patient outcomes
Effectively designing and deploying a patient-centric value network
begins with an analysis of the insights and data required to understand
the demand characteristics of each product and segment.
Three keys to successful implementation
Establish supply strategies to ensure predictable,
compliant and secure supply when and where the
patients need it
For example, a major pharmaceutical firm leveraged a service
provider’s offering, and loaded multiple tiers of suppliers in its global
network into the provider’s collaborative application.
Using the application to monitor tier supply network operations, this life
sciences brand owner was able to see in near-real time exception
events at two Tier 2 suppliers. The company notified the affected
Tier 1 suppliers, who weren’t yet aware of the disruptions, to initiate
risk mitigations and help accelerate time to recovery.
9Copyright © 2015 Accenture All rights reserved.
Gartner – “Supply Management and Logistics Leaders Can Leverage Upstream Visibility to Generate Value and Reduce Risk”
July 24, 2014 by Analysts Ray Barger Jr, Greg Aimi, Christian Titze
Three keys to successful implementation
Put in place a cloud-based control tower to enable end-
to-end visibility and analytics across the value network
and ensure that products and services are efficiently
delivered to the patient
Today, most companies and solution providers see supply chain
control towers as primarily a technology-enabled visibility play.
Accenture views control towers as overarching supply chain visibility
and analytics networks with a broader mandate for high-value shared
and managed services opportunities and orchestrated processes that
enable patient-driven capabilities and optimize business value.
10Copyright © 2015 Accenture All rights reserved.
Copyright © 2015 Accenture All rights reserved. 11
Building a patient-centric
value network requires
thinking about a set of
factors and enablers
that differ from those in
traditional supply chain
planning and execution:
Are you ready to think differently?
Connecting market insights and patient outcomes
back to commercial and financial processes.
Connecting commercial and financial processes
through integrated business planning, into
the supply planning network including contract
manufacturers, suppliers and contract research.
Planning for digitization and for the Internet of
Things, where many devices, processes and
assets can be connected into the digital value
network for analytics purposes.
Managing the significant organizational changes
involved to ensure take-up of new processes and
new ways of working.
Upgrading skills, talent and organization structure
based on the state of process maturity of the
evolving, end-to-end supply chain.
12Copyright © 2015 Accenture All rights reserved.
Take your supply chain from push to pull
accenture.com/pushtopull
For more information contact:
Roderick Martin
roderick.martin@accenture.com
Bill Kammerer
william.m.kammerer@accenture.com
Jennifer Seeley
jennifer.e.seeley@accenture.com
Derek Jones
derek.m.jones@accenture.com

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Push to Pull: From Supply Chains to Patient-Centric Value Networks

  • 1. Accenture Life Sciences Rethink Reshape Restructure…for better patient outcomes Push to Pull: From Supply Chains to Patient-Centric Value Networks
  • 2. Changing patient needs Increased competition Increased regulatory controls Increased costs and inventory levels Expansion into emerging markets New therapies, devices and products Frequency of mergers, acquisitions and divestitures Expired patents and less profitable product extensions 2 The traditional life sciences supply chain can’t keep up with the industry challenges and opportunities Copyright © 2015 Accenture All rights reserved. Reasons for this situation
  • 3. Add it all up and it means that the traditional supply chain model must evolve. A dynamic, sense-and- respond market and patient-centric supply chain is now needed as a core prioritized strategic capability. Copyright © 2015 Accenture All rights reserved. 3
  • 4. 4 How does a patient-centric value network operate? Copyright © 2015 Accenture All rights reserved. A patient-centric model senses demand, and also shapes demand, across the healthcare ecosystem at a granular level − translating the analyses of patient and treatment data into insights, patterns and signals that indicate what supply-side products and services are needed, when and where. This kind of network requires new levels of integration between the supply chain organization and commercial and financial processes.
  • 5. 5 What prevents most life sciences companies from delivering on a patient-centric supply chain? Copyright © 2015 Accenture All rights reserved. Accenture research, June and July 2014 The Accenture 2015 Supply Chain Control Tower Study is based on a cross-industry survey of more than 500 C-level operations and supply chain executives at companies with revenues greater than $500 million across the Americas, Europe, and Asia-Pacific. A lack of focus on end-to- end processes and operational excellence A siloed, functionally compartmentalized approach that leads to inflexible and inefficient operations, processes, facilities and infrastructures Inadequate visibility, transparency and trust across the healthcare ecosystem hinders collaboration and alignment
  • 6. 6 What prevents most life sciences companies from delivering on a patient-centric supply chain? Copyright © 2015 Accenture All rights reserved. Accenture research, June and July 2014 The Accenture 2015 Supply Chain Control Tower Study is based on a cross-industry survey of more than 500 C-level operations and supply chain executives at companies with revenues greater than $500 million across the Americas, Europe, and Asia-Pacific. A lack of focus Accenture supply chain research and experience bear out these challenges: 31% respondents say that a limited ability to translate data into business insights was a major obstacle to implementing an effective supply chain strategy. cited the lack of a coherent, “one source of truth” for data as a major constraint to end-to- end capabilities. 19% Almost every finding pointed back to the same challenge: poor visibility to the information necessary to make critical, end-to-end supply chain decisions. Siloed approach Inadequate visibility
  • 7. 7 Patient-centric value network example Copyright © 2015 Accenture All rights reserved. http://www.cio.com/article/2385814/big-data/how-to-profit-from-the-ultimate-big-data-source-the-weather.html Merck, former manufacturer of the Claritin allergy medication. Using Big Data capabilities, Merck analyzed specialized weather forecasts to predict when allergens were likely to be especially prevalent. Merck shared this weather intelligence with Wal-Mart to correlate it to customer behavior by US ZIP code. The analysis was augmented by social media comments about allergies within patient communities. The result: Better availability of Claritin at stores near those ZIP codes just when allergy sufferers needed it most. A significant decrease in inventory and working capital costs.
  • 8. Three keys to successful implementation 8Copyright © 2015 Accenture All rights reserved. Look for and translate the insights that improve patient outcomes Effectively designing and deploying a patient-centric value network begins with an analysis of the insights and data required to understand the demand characteristics of each product and segment.
  • 9. Three keys to successful implementation Establish supply strategies to ensure predictable, compliant and secure supply when and where the patients need it For example, a major pharmaceutical firm leveraged a service provider’s offering, and loaded multiple tiers of suppliers in its global network into the provider’s collaborative application. Using the application to monitor tier supply network operations, this life sciences brand owner was able to see in near-real time exception events at two Tier 2 suppliers. The company notified the affected Tier 1 suppliers, who weren’t yet aware of the disruptions, to initiate risk mitigations and help accelerate time to recovery. 9Copyright © 2015 Accenture All rights reserved. Gartner – “Supply Management and Logistics Leaders Can Leverage Upstream Visibility to Generate Value and Reduce Risk” July 24, 2014 by Analysts Ray Barger Jr, Greg Aimi, Christian Titze
  • 10. Three keys to successful implementation Put in place a cloud-based control tower to enable end- to-end visibility and analytics across the value network and ensure that products and services are efficiently delivered to the patient Today, most companies and solution providers see supply chain control towers as primarily a technology-enabled visibility play. Accenture views control towers as overarching supply chain visibility and analytics networks with a broader mandate for high-value shared and managed services opportunities and orchestrated processes that enable patient-driven capabilities and optimize business value. 10Copyright © 2015 Accenture All rights reserved.
  • 11. Copyright © 2015 Accenture All rights reserved. 11 Building a patient-centric value network requires thinking about a set of factors and enablers that differ from those in traditional supply chain planning and execution: Are you ready to think differently? Connecting market insights and patient outcomes back to commercial and financial processes. Connecting commercial and financial processes through integrated business planning, into the supply planning network including contract manufacturers, suppliers and contract research. Planning for digitization and for the Internet of Things, where many devices, processes and assets can be connected into the digital value network for analytics purposes. Managing the significant organizational changes involved to ensure take-up of new processes and new ways of working. Upgrading skills, talent and organization structure based on the state of process maturity of the evolving, end-to-end supply chain.
  • 12. 12Copyright © 2015 Accenture All rights reserved. Take your supply chain from push to pull accenture.com/pushtopull For more information contact: Roderick Martin roderick.martin@accenture.com Bill Kammerer william.m.kammerer@accenture.com Jennifer Seeley jennifer.e.seeley@accenture.com Derek Jones derek.m.jones@accenture.com

Notes de l'éditeur

  1. A lack of focus on end-to-end processes and operational excellence. A siloed, functionally compartmentalized approach (e.g., R&D versus operations and clinical trials) has led to inflexible and inefficient global operations, processes, facilities and infrastructures. inadequate visibility, transparency and trust across the healthcare ecosystem hinders collaboration and alignment because information sharing and objective analyses are constrained and context is not always aligned
  2. A lack of focus on end-to-end processes and operational excellence. A siloed, functionally compartmentalized approach (e.g., R&D versus operations and clinical trials) has led to inflexible and inefficient global operations, processes, facilities and infrastructures. inadequate visibility, transparency and trust across the healthcare ecosystem hinders collaboration and alignment because information sharing and objective analyses are constrained and context is not always aligned
  3. Consider the case of Merck, former manufacturer of the Claritin allergy medication. Using Big Data capabilities, Merck was able to analyze specialized weather forecasts to predict when allergens were likely to be especially prevalent. It then shared this weather intelligence with Wal-Mart to correlate it to customer behavior by US ZIP code. The analysis was augmented by social media comments about allergies within patient communities. The result was better availability of Claritin at stores near those ZIP codes just when allergy sufferers needed it most.1 It also led to a significant decrease in inventory and working capital costs.
  4. Invest wisely in the collection of critical data, and integration with partners, suppliers and customers to collaborate and plan more effectively. Proactive, end-to-end visibility to order information, market demand fluctuations, critical events and shortages product launches, service levels, and specific market regulations. Build the analytics capabilities to discover insights through the application of digital solutions that capture and assimilate this information in real time. Establish more flexible operating models and making smart decisions on how to partner and who to partner with. Manage product availability and execute sufficiency planning to ensure appropriate leverage of network capacity and product availability.
  5. Supply strategies must be evaluated in the context of demand and market trends to ensure that the right capabilities are built in the product supply network that ensure reliable and compliant supply of materials from the manufacturing and operations process. Risk management and market strategies should include an appropriate level of redundancy and supplier interchangeability based on capabilities required. Inbound and outbound transportation and materials management processes should then be architected to ensure materials and products are in the right place at the right time and can be tracked for product safety and compliance. For example, a major pharmaceutical firm leveraged a service provider’s offering, and loaded multiple tiers of suppliers in its global network into the provider’s collaborative application. Using the application to monitor tier supply network operations, this life sciences brand owner was able to see in near-real time exception events at two Tier 2 suppliers. The company notified the affected Tier 1 suppliers, who weren’t yet aware of the disruptions, to initiate risk mitigations and help accelerate time to recovery.
  6. At the core of the supply chain enablement strategy is an enterprise architecture of traditional and cloud-based applications and processes that provides the foundation for integrated end-to-end visibility, analytics and execution processes. Effectively designing and deploying a patient-centric value network begins with an analysis of the insights and data required to understand the demand characteristics of each product and segment. This enterprise architecture, the digital value network, includes the existing IT infrastructure and data, applications, and an integrated cloud –based communication and analytics platform. Today, most companies and solution providers see supply chain control towers as primarily a technology-enabled visibility play. In contrast, Accenture views control towers as overarching supply chain visibility and analytics networks with a broader mandate for high-value shared and managed services opportunities and orchestrated processes that enable patient-driven capabilities and optimize business value.
  7. Building a patient-centric value network requires thinking about a set of factors and enablers that differ from those in traditional supply chain planning and execution: • Connecting market insights and patient outcomes back to commercial and financial processes. • Connecting commercial and financial processes through integrated business planning, into the supply planning network including contract manufacturers, suppliers and contract research. • Planning for digitization and for the Internet of Things, where many devices, processes and assets can be connected into the digital value network for analytics purposes. • Upgrading skills, talent and organization structure based on the state of process maturity of the evolving, end-to-end supply chain. • Managing the significant organizational changes involved to ensure take-up of new processes and new ways of working.