Supply Chain in Pharmaceutical Industry: Pfizer and Eli Lily
1. Introduction
The purpose of this report is to critically assess current purchasing and supply management practices in pharmaceutical industry, while looking at such companies as “Pfizer Inc.” and “Eli Lilly and Company”. Globalization, technological advances and increased worldwide competition has led to more complex supply chains in the pharmaceutical industry. It is important to acknowledge the increased exposure of these supply chains to risk. ‘The purpose of risk management is to ensure that adequate measures are taken to protect people, the environment and assets form harmful consequences of the activities being undertaken’ (Aven, 2007).
2. Pharmaceutical Industry Overview
There are types of companies in the pharmaceutical industry:
Multinational, R&D-based multinational organisations with a worldwide supply of prescription and over-the-counter products. Pfizer and Eli Lilly are both examples of such companies. They have manufacturing sites in many countries.
Large basic manufacturers, which manufacture out-of-patent prescription and over-the-counter drugs.
Smaller manufacturing companies that operate locally, producing both generic and branded products under license or a contract.
Contractors or outsourcing partners, producing companies, which do not have their own product portfolio, but are involved in producing necessary intermediates, active ingredients or final products by providing outsourcing services to larger companies.
This report will look closely at such manufacturers as Pfizer and Eli Lilly, both global pharmaceutical companies with complex supply chains involved in production and distribution.
3.1 Supply Chain Management in Pharmaceutical industry
At the heart of achieving consistent quality products and building a service system, lies a clearly lined Supply Chain Management strategy. Compliance with storage and transportation technology will prevent any changes in the quality of the medicines. The availability of modern
The purpose of this report is to critically assess current purchasing and supply management practices in pharmaceutical industry, while looking at such companies as “Pfizer Inc.” and “Eli Lilly and Company”. Globalization, technological advances and increased worldwide competition has led to more complex supply chains in the pharmaceutical industry. It is important to acknowledge the increased exposure of these supply chains to risk. ‘The purpose of risk management is to ensure that adequate measures are taken to protect people, the environment and assets form harmful consequences of the activities being undertaken’ (Aven, 2007).
2. Pharmaceutical Industry Overview
There are types of companies in the pharmaceutical industry:
Multinational, R&D-based multinational organisations with a worldwide supply of prescription and over-the-counter products. Pfizer and Eli Lilly are both examples of such companies. They have manufacturing sites in many countries.
Large basic manufacturers, which manufacture out-of-patent prescription and over-the-counter drugs.
Smaller manufacturing companies that operate locally, producing both generic and branded products under license or a contract.
Contractors or outsourcing partners, producing companies, which do not have their own product portfolio, but are involved in producing necessary intermediates, active ingredients or final products by providing outsourcing services to larger companies.
This report will look closely at such manufacturers as Pfizer and Eli Lilly, both global pharmaceutical companies with complex supply chains involved in production and distribution.
3.1 Supply Chain Management in Pharmaceutical industry
At the heart of achieving consistent quality products and building a service system, lies a clearly lined Supply Chain Management strategy. Compliance with storage and transportation technology will prevent any changes in the quality of the medicines. The availability of modern
Bibliography: Blackett, T. and Robins, R. (2001) Brand Medicine: The Role of Branding in the Pharmaceutical Industry. New York: Palgrave. Cohen, S. and Roussel, J. (2005) Strategic Supply Chain Management. New York: McGraw-Hill. Dougherty, J. and Gray, C. (2006) Sales and Operations Planning - Best Practices. Victoria, B.C.: Trafford. Enyinda, C. (2011) Modelling Risk Management in the Pharmaceutical Industry Global Supply Chain Logistics Using Analytic Hierarchy Process Model. Proquest, Umi Dissertation Publishing. Handfield, R. (2012) Biopharmaceutical Supply Chains. Boca Raton: CRC Press. Kouvelis, P. (2012) The Handbook of Integrated Risk Management in Global Supply Chains. Hoboken, N.J.: Wiley. Qontro Business Profiles (2008) Eli Lilly and Company Business Profile. Qontro. Qontro Business Profiles (2008) Pfizer Business Profile. Qontro. Rees, H. (2011) Supply Chain Management in the Drug Industry. Hoboken, N.J.: Wiley. Whewell, R. (2010) Supply Chain in the Pharmaceutical Industry. Farnham, England: Gower. Journal Articles: Cubisms (2012) Pharmaceutical Supply Chain Risk Management Eli Lilly (2012) 2011/2012 Corporate Responsibility Update, p.7-33. Pfizer (2009) Corporate Responsibility Report. PWC (2009) 10 Minutes on Supply Chain Risk Management, p.1-4. The Chartered Quality Institute (2010) A Guide to Supply Chain Risk Management for the Pharmaceutical and Medical Device Industries and their Suppliers. 1 p.2-98. Websites: Ernst & Young (2012) Turning Risk Into Results 2012 Mcbride, R. (2012) Pfizer Injects Cloud Computing Into Complex Supply Chain. [Online] Available at: http://www.fiercepharmamanufacturing.com/story/pfizer-injects-cloud-computing-complex-supply-chain/2012-09-12 [Accessed: 09 May 2013]. Pmpnews.com (1997) Managing the Supply Chain | Pharmaceutical & Medical Packaging News. [Online] Available at: http://www.pmpnews.com/article/managing-supply-chain [Accessed: 10 May 2013].