Session 1- State of HPC Supply Chains - Todd Applebaum, Gartner
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Most important capabilities are aligning the org for profitability and
achieving compliant and predictable product supply
Growth and innovation to new and emerging markets
Emerging market expansion is of primary importance, based on survey of life
science supply chain managers
Growth in under-developed countries bring great opportunitites for health
and life sciences, particularly due to middle class growth, living standards,
prevalence of chronic diseases and more sophisticated private healthcare
plans
Regulatory issues make these emerging markets even more complex
How to capture growth in the emerging market? – global reach through
distributed assets and network, complexity in product variety, new models
(i.e. cold chain, direct to pharmacy/hospital, combinations, etc.)
Transitions from supply-centric to a focus on customer value
Lots of progress being made on establishing demand-driven supply chain
capabilities
Growth in non-acute points of care will result in logistics/customer service
complications
Innovative collaborations are on the rise in the life sciences and healthcare
sector
Reaching further down in the SC to gather data
Session 2 – Domestic Supply Chain Report - John Cutler, McCarthy, Sweeney &
Harkaway, PC
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Division within Washington is significantly high
Though MAP 21 Highway bill was passed, nothing has been enacted, and the
funding is inadequate
World Economic Forum ranks US infrastructure as 24th in the world, down
from 5th in the world 10 years ago
National strategic freight transportation plan is on the likely horizon, which
would support more intermodalism
Increased penalties for hazmat violations. Non-payment results in no further
HM operations
The more conservative the senate, there’s a likely bias toward state highway
infrastructure allocation
Rail revenues are up
ILA strike issues are still a potential concern
Truck crash and fatality rates are at an all-time low under the driver HOS
rules adopted in 2003
July 1, 2013 new HOS rules will become active, mandating rest periods and
could lead to significantly longer “restart” times
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CSA continues to generate controversy, being referred to as the trucking
industries number one concern
Driver Fitness BASIC scores of CSA can be misleading and misinterpreted
Session 3 – Winning in the Global Marketplace - Jim Cafone, Pfizer
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Winning through supply chain involves either competing through agility,
cost, service or any combination
The pharma sector is moving from competing through supply chain on
service to having to compete in SC on cost. Particularly due to generic brands
and globalization. Often, multiple types of SCs have to be managed in order
to effectively support product variety
Service markets, tender markets (service and agility) and mature markets
(cost and agility) all require different supply chain management capabilities
The challenge is how to leverage internal coordination for effective customer
interaction
Outsourcing non-core processes and focusing on the primary business
Supply chain virtualization – using cloud technology and leveraging partners
to handle product delivery
Virtualization – no longer device dependent….device independent
Outsourced visibility/rate management and analytics…virtualization
“device agnostic”
Organization and leadership issues are key! Internal integration allows for
more sophisticated implementation and strategic issues
Session 4 – Emerging Market Supply Chains - Vishal Bhandari and Mike Wise - A.T.
Kearney
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Forces that are reshaping healthcare landscape: traditional innovation is
insufficient, increasingly complex value chain activities, increased access to
clinical data, balance of power shifts, cost pressures, emerging markets bring
new pressures
Changing demographics are radically impacting how most health systems
operate, particularly due to shrinking working age
Virtual partners and differentiation based on efficiencies are emerging
realities for pharma operations
Pharmerging markets…Any markey projected to spend $1B Us for 20112015 (including China, Indonesia, Turkey, Poland, Mexico, India etc.). Close
to 12% of the overall market by 2016 will be “pharmerging” markets.
Markets are driven by growing middle class, healthcare infrastructure
investments, and growth of western style diseases
The market maturity continuum (from “nascent” to “mature”) will help
define current and future market requirements and SCM strategies
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Approaching emerging markets as clusters based on the complexity of the
market and distribution concentration can help develop high-level scm
strategies
The level of sc education in emerging markets is pretty low and lacks
sophistication
Succeeding in emerging markets requires integrated strategic planning, the
competency of complexity management, virtual supply chains, the ability to
build and scale operations appropriately
FCPA is a big issue
Dynamism of emerging markets impact investment strategies….less on brick
and mortar, more on IT, people, capabilities, etc.
Session 5 – Shipper and Service Provider Hot Buttons - Shanton Wilcox, CapGemini
and Rick Jordan, Panalpina
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Very solid trends in 3PL use. Mostly due to past successes and the ability to
consolidate the number of 3PLs. Not much insourcing of shippers that
outsource.
Supply chain innovation can often be misinterpreted and defined differently,
making the concept increasingly complex
Innovation hinges on effective organizational structure, in particular internal
relationship fostering and integration
The drivers of innovation are significantly different, when comparing the
perspectives of 3PLs and shippers.
Most 3PLs feel that they are ready to innovate, while barely half of shippers
agree.
Supply chain disruptions: natural factors; IT, energy and communication
outages; operational failures; economic and political factors
Natural catastrophes have significant impacts on insurance losses and overall
risk issues
Many disruptions stem from 2nd and 3rd tier suppliers. Roughly 40%. Yet,
most firms don’t reach deep enough into their respective supply chains to
consider the potential risks from far up in the supply chain
3PLs seem to be much more “secure” about their ability to manage
disruptions and risks than shippers
Primary areas of investment in disruption management – talent, visibility
tools, BCP and enhanced partnering
The large gap between shippers’ perspective on 3PLs IT capabilities and their
satisfaction with their IT capabilities still exists.
Session 6 – Shipper and Service Provider Hot Button Breakouts
Session 7 – Making Better SC Decisions through Total Cost Management – Gary Allen
and Tony Ross, Ernst & Young
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Differentiated logistics service is still an issue for firms, in terms of customer
interaction
Most business intelligence and data analytics are primarily customer
contract driven. Most firms have analytics either planned or not on the
radar…still a need for more focus on this issue
Visibility is still an issue impeding effective flexibility and differentiated
service
Collaboration is still heavily discussed, yet not implemented and still one of
the least likely initiatives to be undertaken
Cost to serve and understanding indirect costs is still a struggle
According to a poll taken during the talk, understand cost-to-serve is still a
big issue for attendees
Serving inefficient customers can cost 10X as much as serving efficient
customers
CPG companies are seemingly ahead of the curve on cost to serve issues
Segmenting customers and suppliers are an essential first step to
implementing total cost to serve initiatives
Global applications of cost to serve are still lacking
Session 8 – Supply Chain Redesign – decision framework, challenges, lessons
learned - David Radeke, J&J
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Regulatory compliance and healthcare system reform are two of the most
prevalent issues impacting the transforming environment in which we now
manage supply chains. The “new normal”
Supply Chain transformation involves change management, strategy and
governance
Performance standards and incentives are very important drivers of change
and transformation
Integrated Strategic Cascade: credo-to-strategy-to-capabilities-to-processesto-infrastructure-to-programs. The governance for change
Cross-functional strategy office allows for an integrated supply chain
environment
“You can not win by saving…you win by growth”
Procurement can contribute to revenue through supplier enabled innovation
Innovation can be used as a significant supplier selection element
Session 9 – Reviewing Global Regulatory Challenges
Mike Meakin, DHL
Good Distribution Practice in the EU
 Focus on patient safety and regulation that leads to recall
 LSPs that ignore contamination and temp specs expose themselves to fines
and legal action
 Repack operations must shred boxes and patient instructions or risk theft by
counterfeiters
 Top 10 audit assessment deficiencies
o Temperature calibration alarms, mapping and testing
o Carrier supplier control
o Documentation
o People and Hygiene
o Quality systems
o Building and housekeeping
o ISS control
o Authorization licenses
o Computer systems
o Quality Risk Management
Domenic Veneziano, FDA
What you need to know about importing into the US
 Know the SC - origin, destination, and intermediaries
 Understand section 801 of the FD&CA
 Know rights and time frames
 Understand the import alert system
 Know the required data elements and keep up to date with new legislation
 Know the district office & HQ for the port in which products make entry
What's new?
 2 New Import IT Systems: PREDICT & ITACS
 2 New legislations: FSMA & FDASIA
 ORA HQ Realignment
 The Pathway to Global Product Safety & Quality
Session 10 – Shipper/Provider RFP Panel
1. COMMUNICATIONS
- Frequent dialog – 2 way – before, during and after the RFP
- Multi-level, multi-function involvement – not just procurement and
sales
2. INFORMATION/DATA
- Accurate/complete
- Data thoroughness and quality
3. LEAD TIME
- Appropriate time given the complexity and urgency of the RFP
- Engage early to ensure thorough and on-time
4. ENABLING PRACTICES
- Advanced sourcing tools with structure and automated scoring
- Iterative process to facilitate enhanced understanding and
effectiveness of bid
5. RELATIONSHIPS
- Take the long term perspective – memories are long and the world is
small