Strategic Supply Chain Investments at Pharmaceutical Company
A global pharmaceuticals company wanted to evaluate future supply-chain options for a group of drug products.
In a series of workshops held with knowledgeable personnel over a six week period, the team (comprising the modeller and all workshop attendees) developed a simple simulation to help understand the likely implications of organisational change involving a significant capital investment. The model centred on several aspects of the change, including co-location of a number of pharmaceutical production facilities and the possible impact of changes in the structure of the organisation on the ability of the supply chain to satisfy future customer demand while reducing overall stock levels. It had been thought that a simulation of the possible impact of moving from the AS-IS to the TO-BE organisation would help the decision-makers but that the traditional simulation approach used by the organisation would not be able to report in time for a major decision point in the investment project. The model’s results were reviewed at each stage and amendments made to reflect feedback from participants.
Final scenario runs included sensitivity analysis and presented the possible performance range of selected Key Performance Indicators.
The model was able to demonstrate the likely improvement in performance between the AS-IS and the TO-BE scenarios, both in stock reduction and in the reducing manufacturing cycle times and the conclusions were presented to senior decision-makers during their next meeting on the subject.
The work was completed in a short period of time and was vital to the correct investment of many millions of dollars that would not have been evident from conventional analysis.
The success was due to an effective synergy between the client and modeller; the former having the relevant expert knowledge and enthusiasm, the latter having considerable experience of pharmaceutical industry modelling.
Client | Anonymous pharmaceutical company |
---|---|
Authors/Consultants | Jones L (Ventana Systems UK) |
Do you want to know more?
More Information
For more information on this case, please contact Lee Jones at Ventana Systems UK. |
OTHER SUCCESSFUL APPLICATIONS
System Dynamics Helps Farmers Escape Poverty Trap in Guatemala
System Dynamics Helps Farmers Escape Poverty Trap in Guatemala EXECUTIVE Summary Guatemala holds the 4th highest global ranking for chronic malnutrition, and climate change is intensifying the challenges subsistence farmers face in providing food for their families....
Twinings Uses System Dynamics Games to Enhance HR Capability
Twinings Uses System Dynamics Games to Enhance HR Capability “Realistic simulation is a powerful approach to building capability. The business simulation developed [by Dashboard Simulations and Lane4] gave [Twinings staff] an experience that called for them to develop...
RSC Uses System Dynamics to Increase HVACR Sales Against the Tide
RSC Uses System Dynamics to Increase HVACR Sales Against the Tide “Using the proven Strategy Dynamic process focused our limited resources on organizing strategic issues, identifying the critical resources, and developing the insight to more rapidly create intuitive...
Upcoming Events

6th Annual System Dynamics Competition by the South Africa System Dynamics Chapter
System Dynamics Competition CORRECT TIME: 2 PM CENTRAL EUROPE The System Dynamics Society’s South Africa Chapter is hosting a System Dynamics Competition that offers participants the opportunity to learn new modeling skills directly from experts, collaborate...
Recent Posts
Book Signing & Book Swap at ISDC 2023
Book Signing & Book Swap at ISDC 2023 Learn about their books directly from the authors! Don’t miss out! Several book authors will join us at the Book Signing event at ISDC 2023. This event will be held live at the conference in Chicago, on Tuesday, July 25 at...
Webinar Highlights & Recording: Digital Twin Business Models for Strategy and Operational Management
Webinar Highlights & Recording: Digital Twin Business Models for Strategy and Operational Management We had the opportunity to delve into the world of business model simulations with industry experts Kim Warren, founder of Strategy Dynamics, and Martin Lycko,...
Webinar Highlights & Recording: System Dynamics Modeling with R.
Webinar Highlights & Recording: System Dynamics Modeling with R. System Dynamics is a powerful approach to understanding complex systems in various fields, such as public health, ecology, and economics. Prof. Jim Duggan, an expert in applying System Dynamics and...
Join us
OTHER SUCCESSFUL APPLICATIONS
System Dynamics Helps Farmers Escape Poverty Trap in Guatemala
System Dynamics Helps Farmers Escape Poverty Trap in Guatemala EXECUTIVE Summary Guatemala holds the 4th highest global ranking for chronic malnutrition, and climate change is intensifying the challenges subsistence farmers face in providing food for their families....
Twinings Uses System Dynamics Games to Enhance HR Capability
Twinings Uses System Dynamics Games to Enhance HR Capability “Realistic simulation is a powerful approach to building capability. The business simulation developed [by Dashboard Simulations and Lane4] gave [Twinings staff] an experience that called for them to develop...
RSC Uses System Dynamics to Increase HVACR Sales Against the Tide
RSC Uses System Dynamics to Increase HVACR Sales Against the Tide “Using the proven Strategy Dynamic process focused our limited resources on organizing strategic issues, identifying the critical resources, and developing the insight to more rapidly create intuitive...
Recent Posts
Book Signing & Book Swap at ISDC 2023
Book Signing & Book Swap at ISDC 2023 Learn about their books directly from the authors! Don’t miss out! Several book authors will join us at the Book Signing event at ISDC 2023. This event will be held live at the conference in Chicago, on Tuesday, July 25 at...
Webinar Highlights & Recording: Digital Twin Business Models for Strategy and Operational Management
Webinar Highlights & Recording: Digital Twin Business Models for Strategy and Operational Management We had the opportunity to delve into the world of business model simulations with industry experts Kim Warren, founder of Strategy Dynamics, and Martin Lycko,...
Webinar Highlights & Recording: System Dynamics Modeling with R.
Webinar Highlights & Recording: System Dynamics Modeling with R. System Dynamics is a powerful approach to understanding complex systems in various fields, such as public health, ecology, and economics. Prof. Jim Duggan, an expert in applying System Dynamics and...
Upcoming Events



6th Annual System Dynamics Competition by the South Africa System Dynamics Chapter
System Dynamics Competition CORRECT TIME: 2 PM CENTRAL EUROPE The System Dynamics Society’s South Africa Chapter is hosting a System Dynamics Competition that offers participants the opportunity to learn new modeling skills directly from experts, collaborate...