- Five Steps toward a Revitalized Pharmaceutical Supply Chain
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- Using pharmaceutical manufacturing to compete | McKinsey
- [Free Read] Pharmaceutical Operations Management: Manufacturing for Competitive Advantage Full
Five Steps toward a Revitalized Pharmaceutical Supply Chain
Today, our industry is facing loss of exclusivity for our medicines as patent protection expires and competition increases. As a society, we need to reconcile the desire to manage short-term healthcare costs with the long-term benefits of better health outcomes. We need to work with jurisdictions, governments, and payors to find a way to bring innovation that makes a difference to the people who need it. McKinsey: How do you respond to these trends in a way that differentiates you from the crowd?
Esteban Santos: Amgen was founded on the belief that innovation brings value to society. By innovating, we can reduce the cost of medicines as well as improve their safety, efficacy, quality, and reliability. We believe in our mission to serve patients and that is reflected in every aspect of our culture. Esteban Santos: We see operations as a competitive advantage for Amgen.
To retain that advantage and advance our capabilities, we focus on reliability, efficiency, agility, and differentiation. Reliable supply—getting medicines to patients in an ever more complex world—has long been a strength for Amgen.
The next element is to keep finding ways to be more efficient and productive. Reliability and efficiency remain important, but they are no longer sufficient to ensure our success. We also have to become more agile in how we deliver our products and services. So we need to be thoughtful about balancing the desire to innovate with implications for the people we serve. Finally, differentiation could be in better processes with higher titers, new manufacturing technologies, and improved products with better formulations and delivery devices.
McKinsey: How do you make those strategic shifts in operations to remain competitive? Operations has traditionally earned its seat at the table in a support role, not as the main event. But in an uncertain environment, the way we launch a new product can make a real difference. Operations is the team that turns innovation into something real in the hands of a healthcare practitioner and ultimately in the body of a patient.
As we head into markets crowded with products, it gets harder to predict the demand for established products facing loss of exclusivity, or new products facing competition from day one. Agility is a countermeasure to uncertainty. It can improve speed to market and speed in the market when things change.
Using pharmaceutical manufacturing to compete | McKinsey
If it usually takes months to ramp up production and get a product to market, then as we become more agile by reducing our cycle times, we can be more reliable because we can react to an uncertain environment with less risk to supply. That allows us to wait longer before making a commitment, giving us time to have more certainty about the forecast before investing.
In addition to agility, we need to focus on differentiation in the areas of products, process, technology, and people. And our process-development team plays a big role in building that ecosystem for patients, particularly where combination products are concerned. And the last element of differentiation is people. We have incredibly talented staff with expertise in manufacturing, quality, engineering, supply chain, and process development.
Our job now is to see how we can move from having experts in individual areas to having leaders that integrate thinking across all of them. Showing your team that you care about them and their development is key. I want to turn months into weeks, and weeks into days. McKinsey: How is your view of manufacturing changing as you build new facilities?
[Free Read] Pharmaceutical Operations Management: Manufacturing for Competitive Advantage Full
We have made a bold investment in advancing manufacturing technologies. Take the disposable technologies we adopted to reduce our upfront capital investment on utilities, and our breakthrough in increasing the titers of our processes, which allowed us to create a smaller facility with the same output as a traditional one.
They are now able to alter the classic ways to cure complex diseases thanks to the completion of the human genome project. To be able to compete in this industry, pharmaceutical management has to be effective not only internally but also externally in socially acceptable conduct. The first department that requires focus is marketing and sales.
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As the main driving force to increase revenues and profits, marketing and sales employees should be highly motivated by compensation. Also, customer relationships should be maintained for long-term gain. As important as marketing, research and development requires the financial support as well as the critical decision making to further expand the product pipeline. Similarly, finance and technologies should be adequately monitored and invested to provide support as well as prepare for future expansion.