Transitioning to a commercial-stage company
Making the transition to a commercial-stage company requires the establishment of a wide range of new operational and supply chain capabilities. A pre-commercial biopharmaceutical company focused on metabolic genetic disorders had rapidly built a diverse portfolio of late-stage product candidates and was anticipating its first market introductions within the next 18-24 months. The company was experiencing typical clinical-stage company challenges as it relates to supply planning:
- Planning was manual, people-dependent, and suffered from a lack of formal standards
- Communication between impacted organizations was informal and event-based making planning assumptions and parameters unclear and insufficiently transparent
- Manufacturing and supply lead times were not well understood generating uncertainty around inventory requirements and safety stock levels
As part of its overall commercialization activities, the company was seeking to implement a Sales & Operations Planning process to significantly enhance its overall supply planning capabilities. Arthur D. Little was engaged to help develop a new S&OP process and ensure its successful implementation.
Establishing an integrated S&OP planning process and demand-driven supply chain
Arthur D. Little worked with the client to establish an integrated S&OP planning process and a demand-driven supply chain to achieve targeted service levels and effectively balance supply and demand. The team began by assessing the current state and identifying key process and capability gaps. Together with the client, a future-state vision was then defined followed by detailed process design and development. Once the S&OP process architecture and organizational model had been agreed upon, a set of pilots were executed to pressure test the process design and the associated governance structure before commencing the full implementation of the process. Arthur D. Little guided the implementation step by step, ensuring full benefit realization while facilitating effective knowledge transfer to the client in order to position the organization for long-term success.
Arthur D. Little helped the client establish a robust S&OP process that drove a new level of alignment and collaboration between business functions in order to balance supply with demand and achieve the targeted business performance. The work positioned the company to be able to consistently supply critical medicines to patients while significantly reducing the risk of stock outs. Operational efficiency was enhanced, demand and supply tradeoff decisions were much better understood throughout the organizations, and ultimately overall operational readiness for commercial launch was ensured.