Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Search in posts
Search in pages

Go Home

Strategic Supply Chain Investments at Pharmaceutical Company

Nov 5, 2020 | Cases, Health Policy

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

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...

Achieving a Polio-Free World Through System Dynamics Simulation

Achieving a Polio-Free World Through System Dynamics Simulation EXECUTIVE Summary This System Dynamics model underpinned a 192 country resolution to eradicate polio globally and led the Bill and Melinda Gates Foundation to give Rotary International $100 million to...

Upcoming Events

Recent Posts

How to Sell System Dynamics (Or Anything Else)

How to Sell System Dynamics (Or Anything Else) If it’s so good – why is System Dynamics so hard to sell? The key to selling System Dynamics has nothing to do with what we’ve learned in grad school. Instead, the key is to clarify a fundamental confusion everyone seems...

How Food and System Dynamics Gave me A Career

How Food and System Dynamics Gave me A Career A discussion of two System Dynamics projects that had some real impact and then reflect on how this happened, and what needs to be in place for us system dynamicists to have an impact. Papers mentioned: Transforming Food...

Join us

LET US BE PART OF YOUR JOURNEY

Do you want to lead your organization into the future by overcoming paradigms and creating change? With Systems Thinking and System Dynamics you will enable powerful decision-making and find the leverage points to improve profits, strategy, efficiency, sustainability, and more.

Rebecca Niles

Talk with Us

The most efficient way to align your needs with our offerings is to schedule a meeting with our Executive Director, Rebecca Niles

Engage a Systems Consultant

Looking for a Systems Consultant? Fill out this form and we will follow up with a call and, soon enough, the right person for the job.

Experience Systems Thinking

Bring in a facilitator to unleash the power of Systems Thinking in your organization. Fill out this form for a Beer Game facilitator and join the companies, and graduate and MBA programs that play this game all over the world. Contact us if a facilitator for a different game is needed.

WPI System Dynamics Fundamentals micro-course 1

Start Learning

Join the WPI Sytem Dynamics Fundamentals Course to understand the causes of dynamic behavior at a basiic level and much more! The course is self-led and self-paced.