SlideShare uma empresa Scribd logo
1 de 6
Baixar para ler offline
Dramatically changing the sector’s inefficient supply
chain may eliminate the dangers posed by counterfeiting
and medication errors.
The manufacturing of pharmaceuticals and medical devices is becoming increasingly complex.
Companies are expanding their product portfolios to meet rapidly changing markets and
lengthening product life cycles. Emerging economies want more affordable products. Quality and
compliance issues are rising because products are more complex and regulatory scrutiny is stricter.
And the number of drug recalls is increasing. Yet the supply chain remains fragmented and
incomplete, with weaknesses that put patients at risk, cost billions in value, and lessen the health-
care sector’s ability to take on the challenges it faces.
The good news is that models do exist to strengthen and improve the health-care supply chain. We
believe that by learning from the experience of industries such as fast-moving consumer goods
(FMCG), the health-care sector could cut production lead times and obsolescence, while
manufacturers, distributors, hospitals, and pharmacies could carry significantly smaller
inventories (Exhibit 1). Improving the health-care supply chain also could give millions of people
around the world access to safer and more affordable health care, reduce costs, and provide new
revenue sources for manufacturers. (For more, see our video interview with McKinsey director
Katy George on how standardizing processes and adopting best practices from other sectors offer
promise for improving the health-care supply chain, on mckinsey.com.)
Our research identified five specific capabilities that can have a dramatic impact on performance
and bottom lines:
• better segmentation of products, markets, and customers
• greater agility, to reduce costs and increase flexibility
• measurement and benchmarking
Strengthening health care’s
supply chain: A five-step plan
Thomas Ebel, Erik Larsen, and Ketan Shah
S E P T E M B E R 2 0 1 3
2
• alignment with global standards
• collaboration across the health-care value chain
Now, we recognize that transforming supply chains isn’t easy. In our experience, limited
improvement efforts yield poor results, while comprehensive, integrated efforts are complex. But
the payoff can be significant. Supply chains now account for nearly 25 percent of pharmaceutical
costs and more than 40 percent of medical-device costs. The annual spending is so vast—about
$230 billion on pharmaceuticals and $122 billion on devices—that even minor efficiency gains
could free up billions of dollars for investments elsewhere. In fact, if the sector adopted
straightforward advances well established in other industries, we estimate that total costs (from
the supply chain and external areas, such as patient care) could fall by $130 billion.
Industry research, together with our own experience serving clients, has revealed opportunities to
boost profitability throughout the value chain. The improvement from better-performing supply
chains would range from about 6 percent for retailers to 20 percent for hospitals and producers of
devices and medical supplies (Exhibit 2).
Easing shortages, improving safety
The cost of the shortcomings of today’s supply chain is substantial. Since 2005, drug shortages
have nearly tripled in the United States and added more than half a billion dollars in costs for
hospitals worldwide. Supply issues also create opportunities for counterfeiters and gray-market
vendors, threatening patient safety and cutting into the revenues of legitimate companies. Supply-
Exhibit 1 Operational metrics suggest huge opportunities.
Web 2013
Healthcare supply chains
Exhibit 1 of 2
Inventory,
days
258 3.1 120–180Pharmaceuticals
153 120–180Medical devices
72 0.5 3–7
Fast-moving
consumer goods
Obsolescence,
% of sales
Manufacturing lead
time, days
2–4× 6× 25–40×
2.8
chain security breaches are increasing by an average of more than 33 percent every year, rising
not only in emerging markets such as China, India, and Brazil but also in the developed world.
In addition, medication errors in the developed world occur in roughly 10 to 20 percent of all
inpatient hospital admissions. About 1 in 10,000 patients admitted dies from adverse drug events,
which, we estimate, add $20 billion to $90 billion in costs to the health-care system globally.
Better supply-chain processes are central to increasing patient safety. We estimate that adopting a
common global data standard and upgrading supply-chain processes could slash counterfeiting in
half, returning $15 billion to $30 billion in revenue (by 2016) to legitimate companies for
reinvestment in further improvements to patient care.
Building a new health-care supply chain
A typical Asian laptop manufacturer can accept an order on a Monday and deliver a pallet of
freshly assembled customized computers to a European customer little more than a week later. In
contrast, a typical pharmaceutical manufacturer has a lead time of about 75 days. How can
medical-device and pharmaceutical manufacturers close the gap? Of the five comprehensive
transformations we have identified, three can be accomplished internally. Two others—alignment
and collaboration—are potentially the most powerful but require a company to work together with
its customers, suppliers, and even competitors. Here’s what must be done.
3
Exhibit 2 Opportunities from the transformation of supply chains can be found
across the whole value chain.
Web 2013
Healthcare supply chains
Exhibit 2 of 2
Impact on profit, %
9–11
9–21
10–20
7–10
6–11
12–21
Pharmaceuticals
Medical devices
Medical supplies
Retail/pharmacies
Hospitals
Wholesaler
Manufacturers
Providers
4
Internal factors
1. Segmentation. Many pharmaceutical and medical-device companies come close to running
one-size-fits-all supply chains. In practice, however, there can be significant differences in
profitability, value per unit of weight, demand, the importance of a drug or device to patients, a
customer’s cost to serve, and service expectations. Forcing products with such varied
characteristics through a single set of supply-chain processes creates multiple inefficiencies, such
as high inventories for some products while others are in short supply, the use of expensive air
freight when slower surface modes would do, or a need to reschedule production campaigns
hastily to meet urgent delivery requirements. Leading companies tackle these problems by
intelligently segmenting their supply chains according to the characteristics of products and the
requirements of customers. They then develop forecasting, production, and distribution
strategies for each category.
2. Agility. This means more than just being fast when there’s an emergency; it means building an
operating model that can better respond to demand shifts and customer wishes—at the same or
even reduced cost. As we mentioned, the replenishment lead time from pharmaceutical plants to
distribution centers is 75 days, on average. But leading companies in sectors such as fast-moving
consumer goods take a fraction of that time, often without additional investments. Companies
must better align the production cycle with the patterns of patient demand and increase the low
frequency of their manufacturing processes. The average stock-keeping unit (SKU) is packaged
every two to three months; only about 10 percent are packaged every two weeks or less.
An agile supply-chain model also requires stability in production, replenishment, and visibility.
Many health-care companies need to make deliveries from third parties and in-house plants
more reliable and to upgrade their sales- and operations-planning capabilities to the standards of
the fast-moving-consumer-goods industry. The necessary improvements include a more
disciplined cross-functional process, a better understanding of demand-and-supply scenarios and
of underlying assumptions, more effective communication, and transparency on potential supply
issues and bottlenecks.
3. Measurement. Health-care companies need to increase the transparency of their costs,
including manufacturing, transport, warehousing, inventory holding, staff, and obsolescence—
moves that could cut operational costs and optimize route-to-market approaches and product
portfolios. Improvements are also needed in structural drivers or capabilities: responsiveness,
manufacturing frequency, reliability of supply, and stability are mostly not systematically
measured or managed across the network. Consumer-goods companies are clearly more
advanced: they watch metrics such as the manufacturing-frequency index to measure the share of
SKUs that are produced with high frequency. Finally, companies must standardize metrics across
5
countries and plants. Commercially available benchmarking tools and approaches provide
rough guidance for high-level opportunities in services, costs, and inventories, but not fully
comparable results or tangible recommendations on how to capture value.
External factors
While internal optimization can deliver better service at lower cost, companies have even more
to gain from optimizing externally. To do so, they must align processes and improve
collaboration.
4. Alignment. Manufacturers of fast-moving consumer goods use point-of-sale information
from retail customers to build production plans. The grocery industry, for example, has created
billions of dollars in value by adopting standard barcodes. To build a cost-effective supply chain,
the health-care sector could align around a single set of global standards that support data
interchange, processes, and capabilities. Doing so may increase efficiency and patient safety by
making it harder for counterfeiters to operate, by reducing medication errors, and by improving
recall processes.
5. Collaboration. While the use of common standards is part of the challenge, supply-chain
partners must find ways to collaborate more effectively to reap the full benefit. Barriers to
improvement are often cultural rather than technical—transactional relationships must be
transformed into something more ambitious. In our experience observing successful
collaboration projects, six essential steps can make the difference between a productive
collaboration and a frustrating one: companies must collaborate in areas where they have a
solid footing; agree on sophisticated benefit-sharing models; select partners for the potential
value of the collaboration, as well as their capabilities and willingness to act as a team; dedicate
resources to the collaboration and involve senior leadership in it; jointly manage performance
and measure impact; and start out with a long-term perspective.
At a recent meeting of senior supply-chain executives in the pharmaceutical and medical-device
industries, we asked attendees which of these five supply-chain changes offered the greatest
opportunity. More than 70 percent specified improved collaboration.
Transforming the health-care supply chain can do much more than improve the bottom line. By
embracing the challenge of supply-chain leadership, pharmaceutical and medical-device
companies can provide safer, more affordable access to products that enhance or even save the
lives of people across the world.
6
For more on this research, download the full report, Building new strengths in the health-care
supply chain, on mckinsey.com. You can find further information on the topic of standardization
by downloading the related report Strength in unity: The promise of global standards in health
care, also available on mckinsey.com.
The authors would like to acknowledge the contributions of Katy George and Drew Ungerman
to this article.
Thomas Ebel is a principal in McKinsey’s Düsseldorf office; Erik Larsen is an associate
principal in the Chicago office, where Ketan Shah is a principal.
Copyright © 2013 McKinsey & Company. All rights reserved.

Mais conteúdo relacionado

Mais procurados

Supply Chain Management in healthcare
Supply Chain Management  in healthcareSupply Chain Management  in healthcare
Supply Chain Management in healthcareAnurag Gupta
 
Healthcare Supply Chain Management in the US
Healthcare Supply Chain Management in the USHealthcare Supply Chain Management in the US
Healthcare Supply Chain Management in the USLevi Shapiro
 
Supply Chain Metrics That Matter: A Focus on the Pharmaceutical Industry - 3 ...
Supply Chain Metrics That Matter: A Focus on the Pharmaceutical Industry - 3 ...Supply Chain Metrics That Matter: A Focus on the Pharmaceutical Industry - 3 ...
Supply Chain Metrics That Matter: A Focus on the Pharmaceutical Industry - 3 ...Lora Cecere
 
1st BME Global Pharma Supply Chain Congress 2016
1st BME Global Pharma Supply Chain Congress 20161st BME Global Pharma Supply Chain Congress 2016
1st BME Global Pharma Supply Chain Congress 2016Christoph Feldmann
 
2015 Medical Device Outlook - Deloitte
2015 Medical Device Outlook - Deloitte2015 Medical Device Outlook - Deloitte
2015 Medical Device Outlook - DeloitteMedicalaDevica
 
Understanding pharmaceutical value_chain
Understanding pharmaceutical value_chainUnderstanding pharmaceutical value_chain
Understanding pharmaceutical value_chainUtai Sukviwatsirikul
 
Benchmark Study
Benchmark StudyBenchmark Study
Benchmark StudyTodd Tabel
 
Hospital Supply Chain Automation Case Study
Hospital Supply Chain Automation Case StudyHospital Supply Chain Automation Case Study
Hospital Supply Chain Automation Case StudyIthaca Business Limited
 
Medical devices equipped for the future
Medical devices equipped for the futureMedical devices equipped for the future
Medical devices equipped for the futureBrand Acumen
 
Supply Chain Management of Pharmaceuticals Company
Supply Chain Management of Pharmaceuticals  CompanySupply Chain Management of Pharmaceuticals  Company
Supply Chain Management of Pharmaceuticals CompanyRageeb Hasan
 
OSU SIM Equity Research Report (McKesson)
OSU SIM Equity Research Report (McKesson)OSU SIM Equity Research Report (McKesson)
OSU SIM Equity Research Report (McKesson)Simon Wu
 
"Breaking up pharma´s value chain - what can we expect", MICHAEL MÜLLER
"Breaking up pharma´s value chain - what can we expect", MICHAEL MÜLLER"Breaking up pharma´s value chain - what can we expect", MICHAEL MÜLLER
"Breaking up pharma´s value chain - what can we expect", MICHAEL MÜLLERBiocat, BioRegion of Catalonia
 
DHL_LSH_Europe_Whitepaper_MedicalDevices_Web
DHL_LSH_Europe_Whitepaper_MedicalDevices_WebDHL_LSH_Europe_Whitepaper_MedicalDevices_Web
DHL_LSH_Europe_Whitepaper_MedicalDevices_WebIan Moore
 
Pharmaceutical Supply Chains Require New Operational and Technology Models to...
Pharmaceutical Supply Chains Require New Operational and Technology Models to...Pharmaceutical Supply Chains Require New Operational and Technology Models to...
Pharmaceutical Supply Chains Require New Operational and Technology Models to...Cognizant
 
The Power of Focus in Medical Technology
The Power of Focus in Medical TechnologyThe Power of Focus in Medical Technology
The Power of Focus in Medical TechnologyRevital (Tali) Hirsch
 
Medical Devices: Equipped for the Future?
Medical Devices: Equipped for the Future?Medical Devices: Equipped for the Future?
Medical Devices: Equipped for the Future?Revital (Tali) Hirsch
 

Mais procurados (20)

Supply Chain Management in healthcare
Supply Chain Management  in healthcareSupply Chain Management  in healthcare
Supply Chain Management in healthcare
 
HLC_Value_Par Optimization
HLC_Value_Par OptimizationHLC_Value_Par Optimization
HLC_Value_Par Optimization
 
Healthcare Supply Chain Management in the US
Healthcare Supply Chain Management in the USHealthcare Supply Chain Management in the US
Healthcare Supply Chain Management in the US
 
Supply Chain Metrics That Matter: A Focus on the Pharmaceutical Industry - 3 ...
Supply Chain Metrics That Matter: A Focus on the Pharmaceutical Industry - 3 ...Supply Chain Metrics That Matter: A Focus on the Pharmaceutical Industry - 3 ...
Supply Chain Metrics That Matter: A Focus on the Pharmaceutical Industry - 3 ...
 
1st BME Global Pharma Supply Chain Congress 2016
1st BME Global Pharma Supply Chain Congress 20161st BME Global Pharma Supply Chain Congress 2016
1st BME Global Pharma Supply Chain Congress 2016
 
2015 Medical Device Outlook - Deloitte
2015 Medical Device Outlook - Deloitte2015 Medical Device Outlook - Deloitte
2015 Medical Device Outlook - Deloitte
 
Understanding pharmaceutical value_chain
Understanding pharmaceutical value_chainUnderstanding pharmaceutical value_chain
Understanding pharmaceutical value_chain
 
Benchmark Study
Benchmark StudyBenchmark Study
Benchmark Study
 
Hospital Supply Chain Automation Case Study
Hospital Supply Chain Automation Case StudyHospital Supply Chain Automation Case Study
Hospital Supply Chain Automation Case Study
 
Medical devices equipped for the future
Medical devices equipped for the futureMedical devices equipped for the future
Medical devices equipped for the future
 
Supply Chain Management of Pharmaceuticals Company
Supply Chain Management of Pharmaceuticals  CompanySupply Chain Management of Pharmaceuticals  Company
Supply Chain Management of Pharmaceuticals Company
 
5 Myths of Drug Delivery[1]
5 Myths of Drug Delivery[1]5 Myths of Drug Delivery[1]
5 Myths of Drug Delivery[1]
 
SupplyChain-ISSUU
SupplyChain-ISSUUSupplyChain-ISSUU
SupplyChain-ISSUU
 
OSU SIM Equity Research Report (McKesson)
OSU SIM Equity Research Report (McKesson)OSU SIM Equity Research Report (McKesson)
OSU SIM Equity Research Report (McKesson)
 
"Breaking up pharma´s value chain - what can we expect", MICHAEL MÜLLER
"Breaking up pharma´s value chain - what can we expect", MICHAEL MÜLLER"Breaking up pharma´s value chain - what can we expect", MICHAEL MÜLLER
"Breaking up pharma´s value chain - what can we expect", MICHAEL MÜLLER
 
DHL_LSH_Europe_Whitepaper_MedicalDevices_Web
DHL_LSH_Europe_Whitepaper_MedicalDevices_WebDHL_LSH_Europe_Whitepaper_MedicalDevices_Web
DHL_LSH_Europe_Whitepaper_MedicalDevices_Web
 
Pharmaceutical Supply Chains Require New Operational and Technology Models to...
Pharmaceutical Supply Chains Require New Operational and Technology Models to...Pharmaceutical Supply Chains Require New Operational and Technology Models to...
Pharmaceutical Supply Chains Require New Operational and Technology Models to...
 
The Power of Focus in Medical Technology
The Power of Focus in Medical TechnologyThe Power of Focus in Medical Technology
The Power of Focus in Medical Technology
 
Medical Devices: Equipped for the Future?
Medical Devices: Equipped for the Future?Medical Devices: Equipped for the Future?
Medical Devices: Equipped for the Future?
 
Supply Chain Efficiency – A Lever for Enhanced Competitiveness
Supply Chain Efficiency – A Lever for Enhanced CompetitivenessSupply Chain Efficiency – A Lever for Enhanced Competitiveness
Supply Chain Efficiency – A Lever for Enhanced Competitiveness
 

Semelhante a McKinsey - Strengthening health cares supply chain

How to Add Agility and Customer Focus to the Healthcare Supply Chain
How to Add Agility and Customer Focus to the Healthcare Supply ChainHow to Add Agility and Customer Focus to the Healthcare Supply Chain
How to Add Agility and Customer Focus to the Healthcare Supply ChainUPS Longitudes
 
Next generation commercial capabilities
Next generation commercial capabilitiesNext generation commercial capabilities
Next generation commercial capabilitiesFrank Wartenberg
 
White Paper - Internet Marketing Strategies For The Medical Device Industry
White Paper - Internet Marketing Strategies For The Medical Device IndustryWhite Paper - Internet Marketing Strategies For The Medical Device Industry
White Paper - Internet Marketing Strategies For The Medical Device Industryjerryme5
 
Serialization: Driving Business Value Beyond Compliance
Serialization: Driving Business Value Beyond ComplianceSerialization: Driving Business Value Beyond Compliance
Serialization: Driving Business Value Beyond ComplianceCognizant
 
Serialization: Driving Business Value Beyond Compliance
Serialization: Driving Business Value Beyond ComplianceSerialization: Driving Business Value Beyond Compliance
Serialization: Driving Business Value Beyond ComplianceCognizant
 
The Pharma & ACO Relationship
The Pharma & ACO RelationshipThe Pharma & ACO Relationship
The Pharma & ACO RelationshipJoseph Gaspero
 
Work Smarter, Not Harder: Balancing Efficiency and Value in Healthcare
Work Smarter, Not Harder: Balancing Efficiency and Value in HealthcareWork Smarter, Not Harder: Balancing Efficiency and Value in Healthcare
Work Smarter, Not Harder: Balancing Efficiency and Value in HealthcareMary Tolan
 
Elevating the Health of Healthcare: A Four Step Guide
Elevating the Health of Healthcare: A Four Step GuideElevating the Health of Healthcare: A Four Step Guide
Elevating the Health of Healthcare: A Four Step GuideIntalere
 
Medical Devices - Servicing Medical Device Companies
Medical Devices - Servicing Medical Device CompaniesMedical Devices - Servicing Medical Device Companies
Medical Devices - Servicing Medical Device CompaniesIBMElectronics
 
Is your company ready to meet today’s challenges?
Is your company ready to meet today’s challenges?Is your company ready to meet today’s challenges?
Is your company ready to meet today’s challenges?Lidia Gasparotto
 
Data-driven Healthcare for the Pharmaceutical Industry
Data-driven Healthcare for the Pharmaceutical IndustryData-driven Healthcare for the Pharmaceutical Industry
Data-driven Healthcare for the Pharmaceutical IndustryLindaWatson19
 
Supply chain in pharma sector
Supply chain in pharma sectorSupply chain in pharma sector
Supply chain in pharma sectorPiyush Virmani
 
Data-driven Healthcare for Manufacturers
Data-driven Healthcare for ManufacturersData-driven Healthcare for Manufacturers
Data-driven Healthcare for ManufacturersLindaWatson19
 
Data-Driven Healthcare for Manufacturers
Data-Driven Healthcare for Manufacturers Data-Driven Healthcare for Manufacturers
Data-Driven Healthcare for Manufacturers Amit Mishra
 
The 'big data' revolution in healthcare Mckinsey Report
The 'big data'  revolution in healthcare Mckinsey Report The 'big data'  revolution in healthcare Mckinsey Report
The 'big data' revolution in healthcare Mckinsey Report Healthcare consultant
 
Big data revolution_in_health_care_2013_mc_kinsey_report
Big data revolution_in_health_care_2013_mc_kinsey_reportBig data revolution_in_health_care_2013_mc_kinsey_report
Big data revolution_in_health_care_2013_mc_kinsey_reportkate hong
 
A2-3, McKinsey view - The_big_data_revolution_in_healthcare (1)
A2-3, McKinsey view  - The_big_data_revolution_in_healthcare (1)A2-3, McKinsey view  - The_big_data_revolution_in_healthcare (1)
A2-3, McKinsey view - The_big_data_revolution_in_healthcare (1)Tom Pettersson
 
How Do We Heal the Healthcare Value Chain? - 9 MAY 2013
How Do We Heal the Healthcare Value Chain? - 9 MAY 2013How Do We Heal the Healthcare Value Chain? - 9 MAY 2013
How Do We Heal the Healthcare Value Chain? - 9 MAY 2013Lora Cecere
 

Semelhante a McKinsey - Strengthening health cares supply chain (20)

How to Add Agility and Customer Focus to the Healthcare Supply Chain
How to Add Agility and Customer Focus to the Healthcare Supply ChainHow to Add Agility and Customer Focus to the Healthcare Supply Chain
How to Add Agility and Customer Focus to the Healthcare Supply Chain
 
Next generation commercial capabilities
Next generation commercial capabilitiesNext generation commercial capabilities
Next generation commercial capabilities
 
White Paper - Internet Marketing Strategies For The Medical Device Industry
White Paper - Internet Marketing Strategies For The Medical Device IndustryWhite Paper - Internet Marketing Strategies For The Medical Device Industry
White Paper - Internet Marketing Strategies For The Medical Device Industry
 
industry-in-focus
industry-in-focusindustry-in-focus
industry-in-focus
 
LS e-book
LS e-bookLS e-book
LS e-book
 
Serialization: Driving Business Value Beyond Compliance
Serialization: Driving Business Value Beyond ComplianceSerialization: Driving Business Value Beyond Compliance
Serialization: Driving Business Value Beyond Compliance
 
Serialization: Driving Business Value Beyond Compliance
Serialization: Driving Business Value Beyond ComplianceSerialization: Driving Business Value Beyond Compliance
Serialization: Driving Business Value Beyond Compliance
 
The Pharma & ACO Relationship
The Pharma & ACO RelationshipThe Pharma & ACO Relationship
The Pharma & ACO Relationship
 
Work Smarter, Not Harder: Balancing Efficiency and Value in Healthcare
Work Smarter, Not Harder: Balancing Efficiency and Value in HealthcareWork Smarter, Not Harder: Balancing Efficiency and Value in Healthcare
Work Smarter, Not Harder: Balancing Efficiency and Value in Healthcare
 
Elevating the Health of Healthcare: A Four Step Guide
Elevating the Health of Healthcare: A Four Step GuideElevating the Health of Healthcare: A Four Step Guide
Elevating the Health of Healthcare: A Four Step Guide
 
Medical Devices - Servicing Medical Device Companies
Medical Devices - Servicing Medical Device CompaniesMedical Devices - Servicing Medical Device Companies
Medical Devices - Servicing Medical Device Companies
 
Is your company ready to meet today’s challenges?
Is your company ready to meet today’s challenges?Is your company ready to meet today’s challenges?
Is your company ready to meet today’s challenges?
 
Data-driven Healthcare for the Pharmaceutical Industry
Data-driven Healthcare for the Pharmaceutical IndustryData-driven Healthcare for the Pharmaceutical Industry
Data-driven Healthcare for the Pharmaceutical Industry
 
Supply chain in pharma sector
Supply chain in pharma sectorSupply chain in pharma sector
Supply chain in pharma sector
 
Data-driven Healthcare for Manufacturers
Data-driven Healthcare for ManufacturersData-driven Healthcare for Manufacturers
Data-driven Healthcare for Manufacturers
 
Data-Driven Healthcare for Manufacturers
Data-Driven Healthcare for Manufacturers Data-Driven Healthcare for Manufacturers
Data-Driven Healthcare for Manufacturers
 
The 'big data' revolution in healthcare Mckinsey Report
The 'big data'  revolution in healthcare Mckinsey Report The 'big data'  revolution in healthcare Mckinsey Report
The 'big data' revolution in healthcare Mckinsey Report
 
Big data revolution_in_health_care_2013_mc_kinsey_report
Big data revolution_in_health_care_2013_mc_kinsey_reportBig data revolution_in_health_care_2013_mc_kinsey_report
Big data revolution_in_health_care_2013_mc_kinsey_report
 
A2-3, McKinsey view - The_big_data_revolution_in_healthcare (1)
A2-3, McKinsey view  - The_big_data_revolution_in_healthcare (1)A2-3, McKinsey view  - The_big_data_revolution_in_healthcare (1)
A2-3, McKinsey view - The_big_data_revolution_in_healthcare (1)
 
How Do We Heal the Healthcare Value Chain? - 9 MAY 2013
How Do We Heal the Healthcare Value Chain? - 9 MAY 2013How Do We Heal the Healthcare Value Chain? - 9 MAY 2013
How Do We Heal the Healthcare Value Chain? - 9 MAY 2013
 

Mais de Utkan Uluçay, MSc., CDDP

Saglik sektorundeki-trend-ve-ongoruler-nisan-2014
Saglik sektorundeki-trend-ve-ongoruler-nisan-2014Saglik sektorundeki-trend-ve-ongoruler-nisan-2014
Saglik sektorundeki-trend-ve-ongoruler-nisan-2014Utkan Uluçay, MSc., CDDP
 
Devlet Malzeme Ofisi Stratejik Plan (2015 - 2019)
Devlet Malzeme Ofisi Stratejik Plan (2015 - 2019)Devlet Malzeme Ofisi Stratejik Plan (2015 - 2019)
Devlet Malzeme Ofisi Stratejik Plan (2015 - 2019)Utkan Uluçay, MSc., CDDP
 
T. C. Sağlık Bakanlığı Stratejik Plan (2013 - 2017)
T. C. Sağlık Bakanlığı Stratejik Plan (2013 - 2017)T. C. Sağlık Bakanlığı Stratejik Plan (2013 - 2017)
T. C. Sağlık Bakanlığı Stratejik Plan (2013 - 2017)Utkan Uluçay, MSc., CDDP
 
Sağlık bakanlığı 2013/09 sayılı stok yönetim uygulamaları
Sağlık bakanlığı 2013/09 sayılı stok yönetim uygulamalarıSağlık bakanlığı 2013/09 sayılı stok yönetim uygulamaları
Sağlık bakanlığı 2013/09 sayılı stok yönetim uygulamalarıUtkan Uluçay, MSc., CDDP
 
Sayıştay mart 2005 hastanelere ilaç alımı raporu
Sayıştay mart 2005 hastanelere ilaç alımı raporuSayıştay mart 2005 hastanelere ilaç alımı raporu
Sayıştay mart 2005 hastanelere ilaç alımı raporuUtkan Uluçay, MSc., CDDP
 
Sağlıkta yeni nesil tedarik zinciri yönetimi
Sağlıkta yeni nesil tedarik zinciri yönetimiSağlıkta yeni nesil tedarik zinciri yönetimi
Sağlıkta yeni nesil tedarik zinciri yönetimiUtkan Uluçay, MSc., CDDP
 
Loder mtso lojistikte yeni bakış açısı utkan uluçay
Loder mtso lojistikte yeni bakış açısı utkan uluçayLoder mtso lojistikte yeni bakış açısı utkan uluçay
Loder mtso lojistikte yeni bakış açısı utkan uluçayUtkan Uluçay, MSc., CDDP
 

Mais de Utkan Uluçay, MSc., CDDP (20)

Saglik sektorundeki-trend-ve-ongoruler-nisan-2014
Saglik sektorundeki-trend-ve-ongoruler-nisan-2014Saglik sektorundeki-trend-ve-ongoruler-nisan-2014
Saglik sektorundeki-trend-ve-ongoruler-nisan-2014
 
Hospital supply chain core problem Tahran
Hospital supply chain core problem TahranHospital supply chain core problem Tahran
Hospital supply chain core problem Tahran
 
Devlet Malzeme Ofisi Stratejik Plan (2015 - 2019)
Devlet Malzeme Ofisi Stratejik Plan (2015 - 2019)Devlet Malzeme Ofisi Stratejik Plan (2015 - 2019)
Devlet Malzeme Ofisi Stratejik Plan (2015 - 2019)
 
T. C. Sağlık Bakanlığı Stratejik Plan (2013 - 2017)
T. C. Sağlık Bakanlığı Stratejik Plan (2013 - 2017)T. C. Sağlık Bakanlığı Stratejik Plan (2013 - 2017)
T. C. Sağlık Bakanlığı Stratejik Plan (2013 - 2017)
 
TBMM 10. Kalkınma Planı (2014 - 2018)
TBMM 10. Kalkınma Planı (2014 - 2018)TBMM 10. Kalkınma Planı (2014 - 2018)
TBMM 10. Kalkınma Planı (2014 - 2018)
 
Sağlık bakanlığı 2013/09 sayılı stok yönetim uygulamaları
Sağlık bakanlığı 2013/09 sayılı stok yönetim uygulamalarıSağlık bakanlığı 2013/09 sayılı stok yönetim uygulamaları
Sağlık bakanlığı 2013/09 sayılı stok yönetim uygulamaları
 
Sayıştay mart 2005 hastanelere ilaç alımı raporu
Sayıştay mart 2005 hastanelere ilaç alımı raporuSayıştay mart 2005 hastanelere ilaç alımı raporu
Sayıştay mart 2005 hastanelere ilaç alımı raporu
 
Sağlıkta yeni nesil tedarik zinciri yönetimi
Sağlıkta yeni nesil tedarik zinciri yönetimiSağlıkta yeni nesil tedarik zinciri yönetimi
Sağlıkta yeni nesil tedarik zinciri yönetimi
 
Utkan Ulucay SCL Implementer Certificate
Utkan Ulucay SCL Implementer CertificateUtkan Ulucay SCL Implementer Certificate
Utkan Ulucay SCL Implementer Certificate
 
Israil izlenimleri
Israil izlenimleriIsrail izlenimleri
Israil izlenimleri
 
Loder mtso lojistikte yeni bakış açısı utkan uluçay
Loder mtso lojistikte yeni bakış açısı utkan uluçayLoder mtso lojistikte yeni bakış açısı utkan uluçay
Loder mtso lojistikte yeni bakış açısı utkan uluçay
 
Staying demand driven 1
Staying demand driven 1Staying demand driven 1
Staying demand driven 1
 
Staying demand driven 2
Staying demand driven 2Staying demand driven 2
Staying demand driven 2
 
Staying demand driven 3
Staying demand driven 3Staying demand driven 3
Staying demand driven 3
 
The averagequestion tr utkan
The averagequestion tr utkanThe averagequestion tr utkan
The averagequestion tr utkan
 
Using sdbr in rapid response project
Using sdbr in rapid response projectUsing sdbr in rapid response project
Using sdbr in rapid response project
 
Schragenheim mts dbr
Schragenheim mts dbrSchragenheim mts dbr
Schragenheim mts dbr
 
Software that truly supports good decisions
Software that truly supports good decisionsSoftware that truly supports good decisions
Software that truly supports good decisions
 
Measures and trust in scm
Measures and trust in scmMeasures and trust in scm
Measures and trust in scm
 
Tocico2007isseasonality
Tocico2007isseasonalityTocico2007isseasonality
Tocico2007isseasonality
 

Último

Dehradun Call Girls Service 08854095900 Real Russian Girls Looking Models
Dehradun Call Girls Service 08854095900 Real Russian Girls Looking ModelsDehradun Call Girls Service 08854095900 Real Russian Girls Looking Models
Dehradun Call Girls Service 08854095900 Real Russian Girls Looking Modelsindiancallgirl4rent
 
Dehradun Call Girls Service ❤️🍑 8854095900 👄🫦Independent Escort Service Dehradun
Dehradun Call Girls Service ❤️🍑 8854095900 👄🫦Independent Escort Service DehradunDehradun Call Girls Service ❤️🍑 8854095900 👄🫦Independent Escort Service Dehradun
Dehradun Call Girls Service ❤️🍑 8854095900 👄🫦Independent Escort Service DehradunNiamh verma
 
Krishnagiri call girls Tamil aunty 7877702510
Krishnagiri call girls Tamil aunty 7877702510Krishnagiri call girls Tamil aunty 7877702510
Krishnagiri call girls Tamil aunty 7877702510Vipesco
 
Call Girl In Zirakpur ❤️♀️@ 9988299661 Zirakpur Call Girls Near Me ❤️♀️@ Sexy...
Call Girl In Zirakpur ❤️♀️@ 9988299661 Zirakpur Call Girls Near Me ❤️♀️@ Sexy...Call Girl In Zirakpur ❤️♀️@ 9988299661 Zirakpur Call Girls Near Me ❤️♀️@ Sexy...
Call Girl In Zirakpur ❤️♀️@ 9988299661 Zirakpur Call Girls Near Me ❤️♀️@ Sexy...Sheetaleventcompany
 
Call Girls Hyderabad Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Hyderabad Just Call 9907093804 Top Class Call Girl Service AvailableCall Girls Hyderabad Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Hyderabad Just Call 9907093804 Top Class Call Girl Service AvailableDipal Arora
 
Bangalore call girl 👯‍♀️@ Simran Independent Call Girls in Bangalore GIUXUZ...
Bangalore call girl  👯‍♀️@ Simran Independent Call Girls in Bangalore  GIUXUZ...Bangalore call girl  👯‍♀️@ Simran Independent Call Girls in Bangalore  GIUXUZ...
Bangalore call girl 👯‍♀️@ Simran Independent Call Girls in Bangalore GIUXUZ...Gfnyt
 
Nanded Call Girls 👙 6297143586 👙 Genuine WhatsApp Number for Real Meet
Nanded Call Girls 👙 6297143586 👙 Genuine WhatsApp Number for Real MeetNanded Call Girls 👙 6297143586 👙 Genuine WhatsApp Number for Real Meet
Nanded Call Girls 👙 6297143586 👙 Genuine WhatsApp Number for Real MeetCall Girls Service
 
Call Now ☎ 9999965857 !! Call Girls in Hauz Khas Escort Service Delhi N.C.R.
Call Now ☎ 9999965857 !! Call Girls in Hauz Khas Escort Service Delhi N.C.R.Call Now ☎ 9999965857 !! Call Girls in Hauz Khas Escort Service Delhi N.C.R.
Call Now ☎ 9999965857 !! Call Girls in Hauz Khas Escort Service Delhi N.C.R.ktanvi103
 
❤️♀️@ Jaipur Call Girls ❤️♀️@ Jaispreet Call Girl Services in Jaipur QRYPCF ...
❤️♀️@ Jaipur Call Girls ❤️♀️@ Jaispreet Call Girl Services in Jaipur QRYPCF  ...❤️♀️@ Jaipur Call Girls ❤️♀️@ Jaispreet Call Girl Services in Jaipur QRYPCF  ...
❤️♀️@ Jaipur Call Girls ❤️♀️@ Jaispreet Call Girl Services in Jaipur QRYPCF ...Gfnyt.com
 
Local Housewife and effective ☎️ 8250192130 🍉🍓 Sexy Girls VIP Call Girls Chan...
Local Housewife and effective ☎️ 8250192130 🍉🍓 Sexy Girls VIP Call Girls Chan...Local Housewife and effective ☎️ 8250192130 🍉🍓 Sexy Girls VIP Call Girls Chan...
Local Housewife and effective ☎️ 8250192130 🍉🍓 Sexy Girls VIP Call Girls Chan...Russian Call Girls Amritsar
 
(Sonam Bajaj) Call Girl in Jaipur- 09257276172 Escorts Service 50% Off with C...
(Sonam Bajaj) Call Girl in Jaipur- 09257276172 Escorts Service 50% Off with C...(Sonam Bajaj) Call Girl in Jaipur- 09257276172 Escorts Service 50% Off with C...
(Sonam Bajaj) Call Girl in Jaipur- 09257276172 Escorts Service 50% Off with C...indiancallgirl4rent
 
Russian Call Girls Kota * 8250192130 Service starts from just ₹9999 ✅
Russian Call Girls Kota * 8250192130 Service starts from just ₹9999 ✅Russian Call Girls Kota * 8250192130 Service starts from just ₹9999 ✅
Russian Call Girls Kota * 8250192130 Service starts from just ₹9999 ✅gragmanisha42
 
Call Girl Raipur 📲 9999965857 ヅ10k NiGhT Call Girls In Raipur
Call Girl Raipur 📲 9999965857 ヅ10k NiGhT Call Girls In RaipurCall Girl Raipur 📲 9999965857 ヅ10k NiGhT Call Girls In Raipur
Call Girl Raipur 📲 9999965857 ヅ10k NiGhT Call Girls In Raipurgragmanisha42
 
raisen Call Girls 👙 6297143586 👙 Genuine WhatsApp Number for Real Meet
raisen Call Girls 👙 6297143586 👙 Genuine WhatsApp Number for Real Meetraisen Call Girls 👙 6297143586 👙 Genuine WhatsApp Number for Real Meet
raisen Call Girls 👙 6297143586 👙 Genuine WhatsApp Number for Real MeetCall Girls Service
 
Call Girls Service Faridabad 📲 9999965857 ヅ10k NiGhT Call Girls In Faridabad
Call Girls Service Faridabad 📲 9999965857 ヅ10k NiGhT Call Girls In FaridabadCall Girls Service Faridabad 📲 9999965857 ヅ10k NiGhT Call Girls In Faridabad
Call Girls Service Faridabad 📲 9999965857 ヅ10k NiGhT Call Girls In Faridabadgragmanisha42
 
Call Girls In ludhiana For Fun 9053900678 By ludhiana Call Girls For Pick...
Call Girls In  ludhiana  For Fun 9053900678 By  ludhiana  Call Girls For Pick...Call Girls In  ludhiana  For Fun 9053900678 By  ludhiana  Call Girls For Pick...
Call Girls In ludhiana For Fun 9053900678 By ludhiana Call Girls For Pick...Russian Call Girls in Ludhiana
 
Call Girls Chandigarh 👙 7001035870 👙 Genuine WhatsApp Number for Real Meet
Call Girls Chandigarh 👙 7001035870 👙 Genuine WhatsApp Number for Real MeetCall Girls Chandigarh 👙 7001035870 👙 Genuine WhatsApp Number for Real Meet
Call Girls Chandigarh 👙 7001035870 👙 Genuine WhatsApp Number for Real Meetpriyashah722354
 
Call Girls Thane Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Thane Just Call 9907093804 Top Class Call Girl Service AvailableCall Girls Thane Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Thane Just Call 9907093804 Top Class Call Girl Service AvailableDipal Arora
 
Enjoyment ★ 8854095900 Indian Call Girls In Dehradun 🍆🍌 By Dehradun Call Girl ★
Enjoyment ★ 8854095900 Indian Call Girls In Dehradun 🍆🍌 By Dehradun Call Girl ★Enjoyment ★ 8854095900 Indian Call Girls In Dehradun 🍆🍌 By Dehradun Call Girl ★
Enjoyment ★ 8854095900 Indian Call Girls In Dehradun 🍆🍌 By Dehradun Call Girl ★indiancallgirl4rent
 
❤️Call girls in Jalandhar ☎️9876848877☎️ Call Girl service in Jalandhar☎️ Jal...
❤️Call girls in Jalandhar ☎️9876848877☎️ Call Girl service in Jalandhar☎️ Jal...❤️Call girls in Jalandhar ☎️9876848877☎️ Call Girl service in Jalandhar☎️ Jal...
❤️Call girls in Jalandhar ☎️9876848877☎️ Call Girl service in Jalandhar☎️ Jal...chandigarhentertainm
 

Último (20)

Dehradun Call Girls Service 08854095900 Real Russian Girls Looking Models
Dehradun Call Girls Service 08854095900 Real Russian Girls Looking ModelsDehradun Call Girls Service 08854095900 Real Russian Girls Looking Models
Dehradun Call Girls Service 08854095900 Real Russian Girls Looking Models
 
Dehradun Call Girls Service ❤️🍑 8854095900 👄🫦Independent Escort Service Dehradun
Dehradun Call Girls Service ❤️🍑 8854095900 👄🫦Independent Escort Service DehradunDehradun Call Girls Service ❤️🍑 8854095900 👄🫦Independent Escort Service Dehradun
Dehradun Call Girls Service ❤️🍑 8854095900 👄🫦Independent Escort Service Dehradun
 
Krishnagiri call girls Tamil aunty 7877702510
Krishnagiri call girls Tamil aunty 7877702510Krishnagiri call girls Tamil aunty 7877702510
Krishnagiri call girls Tamil aunty 7877702510
 
Call Girl In Zirakpur ❤️♀️@ 9988299661 Zirakpur Call Girls Near Me ❤️♀️@ Sexy...
Call Girl In Zirakpur ❤️♀️@ 9988299661 Zirakpur Call Girls Near Me ❤️♀️@ Sexy...Call Girl In Zirakpur ❤️♀️@ 9988299661 Zirakpur Call Girls Near Me ❤️♀️@ Sexy...
Call Girl In Zirakpur ❤️♀️@ 9988299661 Zirakpur Call Girls Near Me ❤️♀️@ Sexy...
 
Call Girls Hyderabad Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Hyderabad Just Call 9907093804 Top Class Call Girl Service AvailableCall Girls Hyderabad Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Hyderabad Just Call 9907093804 Top Class Call Girl Service Available
 
Bangalore call girl 👯‍♀️@ Simran Independent Call Girls in Bangalore GIUXUZ...
Bangalore call girl  👯‍♀️@ Simran Independent Call Girls in Bangalore  GIUXUZ...Bangalore call girl  👯‍♀️@ Simran Independent Call Girls in Bangalore  GIUXUZ...
Bangalore call girl 👯‍♀️@ Simran Independent Call Girls in Bangalore GIUXUZ...
 
Nanded Call Girls 👙 6297143586 👙 Genuine WhatsApp Number for Real Meet
Nanded Call Girls 👙 6297143586 👙 Genuine WhatsApp Number for Real MeetNanded Call Girls 👙 6297143586 👙 Genuine WhatsApp Number for Real Meet
Nanded Call Girls 👙 6297143586 👙 Genuine WhatsApp Number for Real Meet
 
Call Now ☎ 9999965857 !! Call Girls in Hauz Khas Escort Service Delhi N.C.R.
Call Now ☎ 9999965857 !! Call Girls in Hauz Khas Escort Service Delhi N.C.R.Call Now ☎ 9999965857 !! Call Girls in Hauz Khas Escort Service Delhi N.C.R.
Call Now ☎ 9999965857 !! Call Girls in Hauz Khas Escort Service Delhi N.C.R.
 
❤️♀️@ Jaipur Call Girls ❤️♀️@ Jaispreet Call Girl Services in Jaipur QRYPCF ...
❤️♀️@ Jaipur Call Girls ❤️♀️@ Jaispreet Call Girl Services in Jaipur QRYPCF  ...❤️♀️@ Jaipur Call Girls ❤️♀️@ Jaispreet Call Girl Services in Jaipur QRYPCF  ...
❤️♀️@ Jaipur Call Girls ❤️♀️@ Jaispreet Call Girl Services in Jaipur QRYPCF ...
 
Local Housewife and effective ☎️ 8250192130 🍉🍓 Sexy Girls VIP Call Girls Chan...
Local Housewife and effective ☎️ 8250192130 🍉🍓 Sexy Girls VIP Call Girls Chan...Local Housewife and effective ☎️ 8250192130 🍉🍓 Sexy Girls VIP Call Girls Chan...
Local Housewife and effective ☎️ 8250192130 🍉🍓 Sexy Girls VIP Call Girls Chan...
 
(Sonam Bajaj) Call Girl in Jaipur- 09257276172 Escorts Service 50% Off with C...
(Sonam Bajaj) Call Girl in Jaipur- 09257276172 Escorts Service 50% Off with C...(Sonam Bajaj) Call Girl in Jaipur- 09257276172 Escorts Service 50% Off with C...
(Sonam Bajaj) Call Girl in Jaipur- 09257276172 Escorts Service 50% Off with C...
 
Russian Call Girls Kota * 8250192130 Service starts from just ₹9999 ✅
Russian Call Girls Kota * 8250192130 Service starts from just ₹9999 ✅Russian Call Girls Kota * 8250192130 Service starts from just ₹9999 ✅
Russian Call Girls Kota * 8250192130 Service starts from just ₹9999 ✅
 
Call Girl Raipur 📲 9999965857 ヅ10k NiGhT Call Girls In Raipur
Call Girl Raipur 📲 9999965857 ヅ10k NiGhT Call Girls In RaipurCall Girl Raipur 📲 9999965857 ヅ10k NiGhT Call Girls In Raipur
Call Girl Raipur 📲 9999965857 ヅ10k NiGhT Call Girls In Raipur
 
raisen Call Girls 👙 6297143586 👙 Genuine WhatsApp Number for Real Meet
raisen Call Girls 👙 6297143586 👙 Genuine WhatsApp Number for Real Meetraisen Call Girls 👙 6297143586 👙 Genuine WhatsApp Number for Real Meet
raisen Call Girls 👙 6297143586 👙 Genuine WhatsApp Number for Real Meet
 
Call Girls Service Faridabad 📲 9999965857 ヅ10k NiGhT Call Girls In Faridabad
Call Girls Service Faridabad 📲 9999965857 ヅ10k NiGhT Call Girls In FaridabadCall Girls Service Faridabad 📲 9999965857 ヅ10k NiGhT Call Girls In Faridabad
Call Girls Service Faridabad 📲 9999965857 ヅ10k NiGhT Call Girls In Faridabad
 
Call Girls In ludhiana For Fun 9053900678 By ludhiana Call Girls For Pick...
Call Girls In  ludhiana  For Fun 9053900678 By  ludhiana  Call Girls For Pick...Call Girls In  ludhiana  For Fun 9053900678 By  ludhiana  Call Girls For Pick...
Call Girls In ludhiana For Fun 9053900678 By ludhiana Call Girls For Pick...
 
Call Girls Chandigarh 👙 7001035870 👙 Genuine WhatsApp Number for Real Meet
Call Girls Chandigarh 👙 7001035870 👙 Genuine WhatsApp Number for Real MeetCall Girls Chandigarh 👙 7001035870 👙 Genuine WhatsApp Number for Real Meet
Call Girls Chandigarh 👙 7001035870 👙 Genuine WhatsApp Number for Real Meet
 
Call Girls Thane Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Thane Just Call 9907093804 Top Class Call Girl Service AvailableCall Girls Thane Just Call 9907093804 Top Class Call Girl Service Available
Call Girls Thane Just Call 9907093804 Top Class Call Girl Service Available
 
Enjoyment ★ 8854095900 Indian Call Girls In Dehradun 🍆🍌 By Dehradun Call Girl ★
Enjoyment ★ 8854095900 Indian Call Girls In Dehradun 🍆🍌 By Dehradun Call Girl ★Enjoyment ★ 8854095900 Indian Call Girls In Dehradun 🍆🍌 By Dehradun Call Girl ★
Enjoyment ★ 8854095900 Indian Call Girls In Dehradun 🍆🍌 By Dehradun Call Girl ★
 
❤️Call girls in Jalandhar ☎️9876848877☎️ Call Girl service in Jalandhar☎️ Jal...
❤️Call girls in Jalandhar ☎️9876848877☎️ Call Girl service in Jalandhar☎️ Jal...❤️Call girls in Jalandhar ☎️9876848877☎️ Call Girl service in Jalandhar☎️ Jal...
❤️Call girls in Jalandhar ☎️9876848877☎️ Call Girl service in Jalandhar☎️ Jal...
 

McKinsey - Strengthening health cares supply chain

  • 1. Dramatically changing the sector’s inefficient supply chain may eliminate the dangers posed by counterfeiting and medication errors. The manufacturing of pharmaceuticals and medical devices is becoming increasingly complex. Companies are expanding their product portfolios to meet rapidly changing markets and lengthening product life cycles. Emerging economies want more affordable products. Quality and compliance issues are rising because products are more complex and regulatory scrutiny is stricter. And the number of drug recalls is increasing. Yet the supply chain remains fragmented and incomplete, with weaknesses that put patients at risk, cost billions in value, and lessen the health- care sector’s ability to take on the challenges it faces. The good news is that models do exist to strengthen and improve the health-care supply chain. We believe that by learning from the experience of industries such as fast-moving consumer goods (FMCG), the health-care sector could cut production lead times and obsolescence, while manufacturers, distributors, hospitals, and pharmacies could carry significantly smaller inventories (Exhibit 1). Improving the health-care supply chain also could give millions of people around the world access to safer and more affordable health care, reduce costs, and provide new revenue sources for manufacturers. (For more, see our video interview with McKinsey director Katy George on how standardizing processes and adopting best practices from other sectors offer promise for improving the health-care supply chain, on mckinsey.com.) Our research identified five specific capabilities that can have a dramatic impact on performance and bottom lines: • better segmentation of products, markets, and customers • greater agility, to reduce costs and increase flexibility • measurement and benchmarking Strengthening health care’s supply chain: A five-step plan Thomas Ebel, Erik Larsen, and Ketan Shah S E P T E M B E R 2 0 1 3
  • 2. 2 • alignment with global standards • collaboration across the health-care value chain Now, we recognize that transforming supply chains isn’t easy. In our experience, limited improvement efforts yield poor results, while comprehensive, integrated efforts are complex. But the payoff can be significant. Supply chains now account for nearly 25 percent of pharmaceutical costs and more than 40 percent of medical-device costs. The annual spending is so vast—about $230 billion on pharmaceuticals and $122 billion on devices—that even minor efficiency gains could free up billions of dollars for investments elsewhere. In fact, if the sector adopted straightforward advances well established in other industries, we estimate that total costs (from the supply chain and external areas, such as patient care) could fall by $130 billion. Industry research, together with our own experience serving clients, has revealed opportunities to boost profitability throughout the value chain. The improvement from better-performing supply chains would range from about 6 percent for retailers to 20 percent for hospitals and producers of devices and medical supplies (Exhibit 2). Easing shortages, improving safety The cost of the shortcomings of today’s supply chain is substantial. Since 2005, drug shortages have nearly tripled in the United States and added more than half a billion dollars in costs for hospitals worldwide. Supply issues also create opportunities for counterfeiters and gray-market vendors, threatening patient safety and cutting into the revenues of legitimate companies. Supply- Exhibit 1 Operational metrics suggest huge opportunities. Web 2013 Healthcare supply chains Exhibit 1 of 2 Inventory, days 258 3.1 120–180Pharmaceuticals 153 120–180Medical devices 72 0.5 3–7 Fast-moving consumer goods Obsolescence, % of sales Manufacturing lead time, days 2–4× 6× 25–40× 2.8
  • 3. chain security breaches are increasing by an average of more than 33 percent every year, rising not only in emerging markets such as China, India, and Brazil but also in the developed world. In addition, medication errors in the developed world occur in roughly 10 to 20 percent of all inpatient hospital admissions. About 1 in 10,000 patients admitted dies from adverse drug events, which, we estimate, add $20 billion to $90 billion in costs to the health-care system globally. Better supply-chain processes are central to increasing patient safety. We estimate that adopting a common global data standard and upgrading supply-chain processes could slash counterfeiting in half, returning $15 billion to $30 billion in revenue (by 2016) to legitimate companies for reinvestment in further improvements to patient care. Building a new health-care supply chain A typical Asian laptop manufacturer can accept an order on a Monday and deliver a pallet of freshly assembled customized computers to a European customer little more than a week later. In contrast, a typical pharmaceutical manufacturer has a lead time of about 75 days. How can medical-device and pharmaceutical manufacturers close the gap? Of the five comprehensive transformations we have identified, three can be accomplished internally. Two others—alignment and collaboration—are potentially the most powerful but require a company to work together with its customers, suppliers, and even competitors. Here’s what must be done. 3 Exhibit 2 Opportunities from the transformation of supply chains can be found across the whole value chain. Web 2013 Healthcare supply chains Exhibit 2 of 2 Impact on profit, % 9–11 9–21 10–20 7–10 6–11 12–21 Pharmaceuticals Medical devices Medical supplies Retail/pharmacies Hospitals Wholesaler Manufacturers Providers
  • 4. 4 Internal factors 1. Segmentation. Many pharmaceutical and medical-device companies come close to running one-size-fits-all supply chains. In practice, however, there can be significant differences in profitability, value per unit of weight, demand, the importance of a drug or device to patients, a customer’s cost to serve, and service expectations. Forcing products with such varied characteristics through a single set of supply-chain processes creates multiple inefficiencies, such as high inventories for some products while others are in short supply, the use of expensive air freight when slower surface modes would do, or a need to reschedule production campaigns hastily to meet urgent delivery requirements. Leading companies tackle these problems by intelligently segmenting their supply chains according to the characteristics of products and the requirements of customers. They then develop forecasting, production, and distribution strategies for each category. 2. Agility. This means more than just being fast when there’s an emergency; it means building an operating model that can better respond to demand shifts and customer wishes—at the same or even reduced cost. As we mentioned, the replenishment lead time from pharmaceutical plants to distribution centers is 75 days, on average. But leading companies in sectors such as fast-moving consumer goods take a fraction of that time, often without additional investments. Companies must better align the production cycle with the patterns of patient demand and increase the low frequency of their manufacturing processes. The average stock-keeping unit (SKU) is packaged every two to three months; only about 10 percent are packaged every two weeks or less. An agile supply-chain model also requires stability in production, replenishment, and visibility. Many health-care companies need to make deliveries from third parties and in-house plants more reliable and to upgrade their sales- and operations-planning capabilities to the standards of the fast-moving-consumer-goods industry. The necessary improvements include a more disciplined cross-functional process, a better understanding of demand-and-supply scenarios and of underlying assumptions, more effective communication, and transparency on potential supply issues and bottlenecks. 3. Measurement. Health-care companies need to increase the transparency of their costs, including manufacturing, transport, warehousing, inventory holding, staff, and obsolescence— moves that could cut operational costs and optimize route-to-market approaches and product portfolios. Improvements are also needed in structural drivers or capabilities: responsiveness, manufacturing frequency, reliability of supply, and stability are mostly not systematically measured or managed across the network. Consumer-goods companies are clearly more advanced: they watch metrics such as the manufacturing-frequency index to measure the share of SKUs that are produced with high frequency. Finally, companies must standardize metrics across
  • 5. 5 countries and plants. Commercially available benchmarking tools and approaches provide rough guidance for high-level opportunities in services, costs, and inventories, but not fully comparable results or tangible recommendations on how to capture value. External factors While internal optimization can deliver better service at lower cost, companies have even more to gain from optimizing externally. To do so, they must align processes and improve collaboration. 4. Alignment. Manufacturers of fast-moving consumer goods use point-of-sale information from retail customers to build production plans. The grocery industry, for example, has created billions of dollars in value by adopting standard barcodes. To build a cost-effective supply chain, the health-care sector could align around a single set of global standards that support data interchange, processes, and capabilities. Doing so may increase efficiency and patient safety by making it harder for counterfeiters to operate, by reducing medication errors, and by improving recall processes. 5. Collaboration. While the use of common standards is part of the challenge, supply-chain partners must find ways to collaborate more effectively to reap the full benefit. Barriers to improvement are often cultural rather than technical—transactional relationships must be transformed into something more ambitious. In our experience observing successful collaboration projects, six essential steps can make the difference between a productive collaboration and a frustrating one: companies must collaborate in areas where they have a solid footing; agree on sophisticated benefit-sharing models; select partners for the potential value of the collaboration, as well as their capabilities and willingness to act as a team; dedicate resources to the collaboration and involve senior leadership in it; jointly manage performance and measure impact; and start out with a long-term perspective. At a recent meeting of senior supply-chain executives in the pharmaceutical and medical-device industries, we asked attendees which of these five supply-chain changes offered the greatest opportunity. More than 70 percent specified improved collaboration. Transforming the health-care supply chain can do much more than improve the bottom line. By embracing the challenge of supply-chain leadership, pharmaceutical and medical-device companies can provide safer, more affordable access to products that enhance or even save the lives of people across the world.
  • 6. 6 For more on this research, download the full report, Building new strengths in the health-care supply chain, on mckinsey.com. You can find further information on the topic of standardization by downloading the related report Strength in unity: The promise of global standards in health care, also available on mckinsey.com. The authors would like to acknowledge the contributions of Katy George and Drew Ungerman to this article. Thomas Ebel is a principal in McKinsey’s Düsseldorf office; Erik Larsen is an associate principal in the Chicago office, where Ketan Shah is a principal. Copyright © 2013 McKinsey & Company. All rights reserved.