Awards 2013: Healthcare & Pharmaceuticals

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Healthcare & Pharmaceuticals

Winner: GlaxoSmithKline

This year those in Healthcare & Pharmaceuticals were given their own category. In previous years, healthcare has more often been grouped under Public Services. The scores were good for all three shortlisted companies, but the top two runners were AstraZeneca with Yusen Logistics and GlaxoSmithKline.

The scope of the entry from AstraZeneca with Yusen Logistics covered the re-engineering of AstraZeneca’s complex global flows to optimise freight modes by transport lane – critical to enabling the timely supply of vital drugs.

Working together, lean principles were used to transform the company’s supply chain from push to pull. Through minimising airfreight and maximising ocean movements costs have been reduced and by refining road operations, performance has been improved with reduced lead-times and lower costs, while achieving performance targets. The judges liked the way the collaboration worked, particularly the way Yusen Logistics’ pan-European pharmaceutical network has provided opportunities to consolidate AstraZeneca’s volumes with those from other pharmaceutical manufacturers. Judges thought it was good, but there was one better.

The initial scope for GlaxoSmithKline’s transformation project covered the needs and requirements of over 4,000 scientists based at a number of locations throughout Europe and the USA and covered over 1.2 million items, initially supplied by over 2,800 suppliers. By simplifying the product range, consolidating the supply chain and creating an e-catalogue punch out tool, the company has enabled stakeholders to quickly search and locate their required item, leaving them more time to conduct research. This success has been recognised across the wider business and is now being implemented in Latin America and Asia.

By working with fewer partners the company has identified added value services that vendors can offer that were not visible when dealing with 2,800 suppliers. 18 initiatives have resulted in a major increase in service levels in delivery and quality, cycle time reductions, waste reduction from consolidation and data visibility, and greatly reduced risk.

The judges were impressed by the clear alignment between GlaxoSmithKline’s overall strategy and project objectives – for them, this was the winner.

– GlaxoSmithKline

– AstraZeneca with Yusen Logistics
– GlaxoSmithKline
– NHS Supply Chain


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