Presentation is loading. Please wait.

Presentation is loading. Please wait.

Rethinking Global Network Design Oscar Perez Vice President – Delivery Solutions Pfizer Global Logistics & Supply.

Similar presentations


Presentation on theme: "Rethinking Global Network Design Oscar Perez Vice President – Delivery Solutions Pfizer Global Logistics & Supply."— Presentation transcript:

1 Rethinking Global Network Design Oscar Perez Vice President – Delivery Solutions Pfizer Global Logistics & Supply

2 Today’s Discussion Global Delivery Chain
Global Logistics & Supply Evolution Market Logistics Network Model What’s next Q&A Wyeth is now a part of Pfizer Inc. The merger of local Wyeth and Pfizer entities may be pending in various jurisdictions and is subject to completion of various local legal and regulatory obligations.

3 What Is Driving Our World?
GLOBALIZATION: SUPPLY CHAIN, CUSTOMERS, SUPPLIERS CONVEYANCE INTEGRITY: ECONOMIC, POLITICAL, COMPLIANCE & SECURITY PFIZER STRATEGIES: CORPORATE, COMMERCIAL, PGM, ETC. INFORMATION TECHNOLOGY INTERNATIONAL TRADE TRANSPORTATION SUSTAINABILITY Wyeth is now a part of Pfizer Inc. The merger of local Wyeth and Pfizer entities may be pending in various jurisdictions and is subject to completion of various local legal and regulatory obligations.

4 Purpose Mission Commitments Strategies Enduring Priorities Values
This defines who we are and what we’re about Working together for a healthier world Mission This explains how we will achieve our Purpose Applying innovative science to improve world health Discover, develop and ensure access to safe and effective medicines Partner with key stakeholders and earn their trust Build productive and enduring relationships with governm’ts & communities Make Pfizer a great place to work Create long-term value for shareholders Our Mission is based on these commitments to stakeholders. We must focus on creating value and earning trust for all our stakeholder groups. Refocus and optimize the patent-protected portfolio Find new opportunities for established products Grow in emerging markets Invest in complementary businesses Instill a culture of innovation and continuous improvement Commitments Strategies These build on the priorities and represent the best opportunities to invest in our future, create value with science and technology and deliver innovative health care. Maximize revenues Manage costs Strengthen our culture Meet our commitments to stakeholders Engage each other This is where the work begins. These represent the fundamentals for doing business successfully. Enduring Priorities These underlie all we do, guiding how we behave and how we run our business. Customer Focus Integrity Respect for People Teamwork Innovation Performance Community Leadership Quality Purpose By executing on all these elements of Our Path Forward, we will lay the groundwork for a promising future for Pfizer Values Pfizer Sponsor Training

5 Organization Framework
Commercial Businesses PC Onc. EP EM AH Spec &Vac Cons Nutri PGM Operating Units Business interface/partnership Site operational leadership PC/Onc EP EM AH Spec/ Bios/ Vac Cons Nutri PGM Customer interface Network Performance Leadership / guidance on efficiency and effectiveness of operations Operational Excellence Contract Manufacturing Pfizer Global Engineering Network Performance Operations Rx Contract Mfg (CM) Global Bios CM Cons CM Nutri CM Strategy & Supply Network Transformation So, where does GL&S fit within the PGM organization You have seen this chart from earlier presentations It accurately conveys the fact that we are an enabling function supporting the Operational Units and markets. Global Logistics & Supply Global Manufacturing Services (GMS) Quality Network Enabling Functions (Finance / HR / IT / Procurement / EHS) Wyeth is now a part of Pfizer Inc. The merger of local Wyeth and Pfizer entities may be pending in various jurisdictions and is subject to completion of various local legal and regulatory obligations.

6 Our Path Forward Key impact on Global Logistics & Supply
The new Business Units Primary Care Support for new product launches: Life-Cycle-Management and new innovative products Increase in Direct Sales and roll-out of DTP in EU; channel management (i.e. home delivery) Customer focus. Local solution but global knowledge transfer; High and diverse service level requirements. Established Products Increase in Direct Sales to support top line growth at Point-of-Sale; broad portfolio Speed to market critical for supply chain (especially for product (re-) launches) Efficient distribution: High cost sensitivity, larger shipments with reduced SLAs High volume increase and fluctuations; Potential acquisition of generics companies & products Specialty Care Development and licensing of innovative products (cold chain, hospital products, home delivery) Acquisitions of small specialized companies (i.e. Encysive) More specialty products (biotherapeutics, human vaccines, special devices) Focus on service quality (special processes & channels) Oncology Development or licensing of innovative products (cold chain, special devices, hospital products) Acquisitions of small specialized companies More specialty products (biotherapeutics, special devices); Focus on service quality (special processes & channels): “deliver the right drug at the right time for each patient” Emerging Markets High growth (especially for inline and local products); specific and changing regulatory environments & customer requirements; Roll-out Market Logistics model (i.e.BRIC, Turkey / CEER / AFME) Supply reliability and safety, strong focus on network infrastructure, service quality; lead time; In-licensing of local brands or products for developing markets (global access) Animal Health High volume of cost sensitive cold chain products (vaccines); increase (especially for inline and local products); New product development and acquisition (i.e. SP EU); New Channel models; Strong growth, channels and value propositions; specific PAH network required;

7 DELIVERY CHAIN MANAGEMENT
HOLISTIC PROCESS INTEGRATION Delivery chain design & planning Product Market Network PLAN Supplier integration & coordination ALIGN To-the-Market supply and delivery management In-the-Market supply and delivery management * EXECUTE * Delivery chain performance management VALIDATE Business Process & Data Management COMMUNICATE Differentiate between management of supply structures (plants, contract manufacturers and suppliers) and the operational process to deliver their output. Manage the delivery process holistically, recognizing the interdependence of major elements: strategy & policy, planning, network design, operational execution, finance, performance management, compliance and information / process management.

8 NETWORK DESIGN ELEMENTS
Differentiate between management of supply structures and the operational process to deliver their output. Holistic management of the delivery process, recognizing the interdependence of major elements: strategy & policy, planning, network design, operational execution, finance, performance management, compliance and information / process management. Strong focus for accountability and results (supply assurance, asset management, aggressive cost management, compliance, talent management, etc.). Align with commercial and PGM operations and strategies. Capture & build upon Wyeth best practices, talent and business support processes. Ensure implementation of an integrated Information Technology systems strategy and platform integrating SAP and other systems across delivery chain constituents. As we were constructing the integrated organization we developed and were guided by a number of key design elements. Each of these elements are important in their own right and together they serve to underscore the philosophy and focus we will profess. I want to emphasize a couple: We manage the delivery process . Sites whether in house or outsourced support that process and exist for operational, financial and strategic reasons. This can change as needs change. We are about achieving defined goals! There is a difference between activity and results. We need to secure, nurture, challenge and select the best talent and equip them with strategically aligned systems and processes. Wyeth is now a part of Pfizer Inc. The merger of local Wyeth and Pfizer entities may be pending in various jurisdictions and is subject to completion of various local legal and regulatory obligations.

9 PERFORMANCE, VELOCITY, SECURITY, COMPLIANCE
VALUE PROPOSITION PERFORMANCE, VELOCITY, SECURITY, COMPLIANCE Delivery Chain Performance Management: Process, Talent, Asset, Execution Delivery Chain Services & Operations Global Strategic Trade Management Compliance Strategy & Policy Formulation Holistic Delivery Chain Management Enable Initiatives (Commercial, PGM, etc.) Process Development & Harmonization Integration of Stakeholders Supply Assurance Organization & Talent Management Trade Management Policy Contribution Accountability & Results If we were a stand alone business what would we offer that a company like Pfizer would be willing to buy? This is the value we offer to the organization It starts with a deep understanding of the company, its needs and its goals our unique understanding of these elements enable us to craft the appropriate strategies recognizing the internal and external drivers . Each of the components of this pyramid operating in harmony and focus enables us to deliver results and to stand accountable for supply assurance and the swift, secure, compliant and cost appropriate storage and transit of our goods. Wyeth is now a part of Pfizer Inc. The merger of local Wyeth and Pfizer entities may be pending in various jurisdictions and is subject to completion of various local legal and regulatory obligations.

10 Today’s Discussion Global Delivery Chain
Global Logistics & Supply Evolution Market Logistics Network Model What’s next Q&A Wyeth is now a part of Pfizer Inc. The merger of local Wyeth and Pfizer entities may be pending in various jurisdictions and is subject to completion of various local legal and regulatory obligations. 10

11 Evolution of Global Logistics and Supply
Warner Lambert Pharmacia Wyeth 2000 2001 2003 2006 2008 2009 Expansion to ASIA-PAC Remaining LA And AfME Establishment of European Market Logistics 20 Markets European Distribution Study Integration of Mexico and Brazil Integration of Supply Chain and Global Logistics Expansion of ML to Emerging Markets (Russia and Turkey) Integration US/ Canada Logistics and Supply Points into PGM

12 Pfizer Logistics Network
Global Logistics Transition Distributor No Affiliate Logistics Center

13 Global Logistics Provides Secure And Reliable Delivery Of Products
Manage 3PLs and freight systems Design and optimize deployment routes Plants/ CMs Manage PFE warehouses Compliance Clinics/ patients Use internal knowledge to optimize product movement Work to optimize time, eg, in-transit quarantine Outbound freight Int’l Inbound freight Warehouse Wholesaler Int’l plants/ CMs Supply point movement Inbound freight Customs import/ export Retailers Work to speed time through customs 3PL Sales rep Develop and implement conveyance security strategy Product security Develop and ensure conformity with policies Respond to internal/ external trends & optimize value (tax) through supply chain/logistics design Strategic alignment with Pfizer businesses 13

14 Strategic Guidelines Leverage Pfizer volume
Combine operations for the businesses Negotiate better rates Pursue opportunities for regional distribution Establish regional hubs / integrated operations with LC’s Outsource for flexibility Rationalize logistics services provider base Standardize towards activity based contracts Improve costs Capture synergy opportunities (Pharmacia) Improve operational efficiency and effectiveness Enhance Customer Service Establish Service Level Agreements ( country / business ) Ensure Alignment with Trade Policies

15 Outsourcing Strategies
Stabilization Phase ( ) Strategic Objectives Stabilize business Capture immediate opportunities Harmonize agreements Activity Based Costing where appropriate Pfizer T& C respected Activities Extend current relationships if they help meet strategic objectives Engage in local RFP process as necessary Harmonization Phase (2006 – 2009) Distribution Operations Outsourced Move towards regional Logistics Service Providers (LSP’s) Capture additional operational and process efficiencies Engage in regional/pan European RFP process Optimize distribution network based on new business / trade strategies Leverage global provider relationships

16 Realigning Markets for the Network of the Future
North Europe South Europe Mid Europe Nordics / CEER / Benelux North Europe / Nordics Mid Europe / CEER 2006 2009 Regional Consolidated Market Non-Consolidated Market

17 Change Management… Q & A
Global Logistics does not know my market! … know logistics and its common, essential elements … normally transfer local staff and upgrade as possible … do not work in isolation If we transfer responsibility we will lose the ability to control our customer relations and sales. … it’s a partnership not a separation … trade policy, developed by the market, determines objectives The conditions in my market are different / unique. … operational aspects of distribution (fulfillment, transport, compliance, returns, claims) are essentially the same Why jeopardize sales to effect a comparatively small savings. … sales are not in jeopardy; changes, if they occur, are carefully planned and executed … often, you are paying too much for services and managing performance selectively … local focus on logistics part-time with no professional support and guidance

18 Questions and Concerns
We have been working with our distribution agent for many years. They know us and we have a very good relationship. … understand and we evaluate possibilities for continued relationships under different terms … in many cases (particularly % of sale agreements) they are overcharging for services … it is precisely because of this that the nature of the relationship and services provided needs to be reviewed We just negotiated a new contract so we cannot change in the near term. … existing contracts are reviewed and consequential actions are taken within the possibilities that exist at the time There are only a few logistics providers in our market and we have already secured the best. … perhaps, however, professional management elevates the services and the cost / performance ratio of even the best providers … look to leverage global advantage in alliances

19 Today’s Discussion Global Delivery Chain
Global Logistics & Supply Evolution Market Logistics Network Model What’s next Q&A Wyeth is now a part of Pfizer Inc. The merger of local Wyeth and Pfizer entities may be pending in various jurisdictions and is subject to completion of various local legal and regulatory obligations. 19

20 Overview of Methodology
Phase I - Internal Planning Guidelines and tools Phase II – Stakeholders Awareness and Buy In Communication and alignment Phase III – Understanding the Market Building a knowledge database (data, strategies, issues…) Phase IV - Assess, design, change, enhance… Analyzing, prioritizing and proposing solutions Phase V – Financial aspects Financial impact prior and post integration Phase VI – Detailed Planning Develop implementation Plan Phase VII – Implementation Monitor progress, mitigate delays and measure results Detailed Planning Financial aspects People Processes Infrastructure Understanding of market Awareness & buy-in Implementation Internal

21 Key Drivers Organizational Design
Aspects to consider when deciding where to locate and how to staff and organize the team Market Size Number of Markets / Market reach / Geography Location of markets and accessibility / Travel time & frequency Commercial Distribution Model In-house, outsourced or distributor model Scope Management of WPO, Consumer, Nutritionals, AH, Mktg Aids and DP (others?) Skills & competencies, Experience and potential of Market Logistics and Local Team High performing vs. low performing team Experienced or new colleagues (ML and local team) Process robustness Strategic vs. Operational Focus Mature vs. Emerging Market Activity fluctuations and multiple initiatives Distribution Network Single vs. Multiple LSP’s / LSP effectiveness and Service Performance Culture and Language

22 Overview LSP Due Diligence Assessments
Scope: identify a potential external supplier for warehousing and/or distribution of pharmaceutical products Areas to be assessed:: Warehouse operations Transportation SOX Business Continuity Planning) Quality Computer System Validation Asset Protection EHS (facility, environmental) Fire Protection

23 Overview LSP Due Diligence Assessments
Initial meeting with each potential supplier content: discuss content & timing of assessments, explain Pfizer quality agreement and general expectations (IT, security, logistics, etc) Carry out one overall assessment at each supplier’s main depot content: check if supplier would generally meet Pfizer expectations (quality, logistics, security); if outcome is negative, no further assessments required If outcome is positive: carry out due diligence assessments at each depot (and at head quarter, if appropriate). Generate & communicate assessment reports and discuss outcome/gaps - If a supplier is chosen, assessment results & action plan need to be included in the contract

24 Success Factors Be prepared to present a compelling case for change
Prepare “Global” tools and solutions Anticipate potential concerns specific to each market and prepare to offer effective answers and solutions Focus on the people and organization aspects as much as on the operational aspects Understand baseline for budget and budget assumptions Don’t underestimate resistance, include change management in the plan… Commit to deliver some quick wins: Identify and solve 1-2 key problems that are important for the business early in the process Consistent and continuous measurement and communication of results is critical Effective partner selection

25 GL&S Expertise Innovative Distribution Models
Direct to Pharmacy/Direct to Patients Pre-Wholesale & Distributor Defining & Optimizing Supply Networks Network structures Transportation network design Service Performance & Metrics/KPIs Service Level Agreements (SLAs) Benchmark service, costs, quality Compliance & Validation Site Audits & Assessments Outsourcing & Procurement Negotiations/Activity based costing models Harmonized contract guidelines Innovation & Technology Team Site remediation & optimization New technologies & best practices Continuous Improvement (Right First Time) Good Distribution Practices & Good Manufacturing Practices (GDP, GMP)

26 Today’s Discussion Global Delivery Chain
Global Logistics & Supply Evolution Market Logistics Network Model What’s next Q&A Wyeth is now a part of Pfizer Inc. The merger of local Wyeth and Pfizer entities may be pending in various jurisdictions and is subject to completion of various local legal and regulatory obligations. 26

27 Strategic Drivers Effectively manage a more diverse and fragmented stakeholder landscape Proactively support the business (BU’s) revenue growth strategies Present “One Voice” to stakeholders and fully leverage our value both internal (PGM) and external (business) Drive development of holistic Delivery Chain processes and a well coordinated long-term organization and network strategy Ensure the seamless integration of suppliers and products into the GL&S delivery chain network Enable coordination, information flow and knowledge transfer

28 Working together for a healthier world
Wyeth is now a part of Pfizer Inc. The merger of local Wyeth and Pfizer entities may be pending in various jurisdictions and is subject to completion of various local legal and regulatory obligations.


Download ppt "Rethinking Global Network Design Oscar Perez Vice President – Delivery Solutions Pfizer Global Logistics & Supply."

Similar presentations


Ads by Google