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Linking Improvement to Transformation:A Global Manufacturing Strategy for Life SciencesThe Deloitte Consulting Approach
Consulting
Table of Contents
Introduction: The Life Sciences Industry Today ......................................................................... Page 1
Why Develop a Global Manufacturing Strategy? ...................................................................... Page 3
The Deloitte Consulting Approach to Global Manufacturing Strategy Development ................ Page 5
Focus on Patient and Shareholder Value ................................................................................... Page 6
Deloitte Consulting’s Strategic Manufacturing Index .................................................................. Page 7
Scenario Planning for Life Sciences Manufacturing .................................................................... Page 9
Global Manufacturing Strategy Development: The Breakdown .............................................. Page 11
How Deloitte Consulting Delivers: Case Study ........................................................................ Page 13
Why Choose Deloitte Consulting? .......................................................................................... Page 15
What Now? ............................................................................................................................. Page 16
Questions and Next Steps to Consider in Creating a Global Manufacturing Strategy................... Page 16
Contact Information ................................................................................................................ Page 16
Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences
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Introduction: The Life Sciences Industry Today
Growth is the goal. Life sciences companies are at a critical point in time.
Business models that had yielded profitable growth
for years face mounting challenges such as increased
competition, more demanding patients and payors,
and a constantly evolving regulatory environment
(Figure 1).
Leaders at companies experiencing growth and those
where it is stalled all face the pressure of addressing
these issues with solutions that encourage and
maintain growth and increase shareholder value.
Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences
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The question for life sciences companies is: “Where are the untapped opportunities to drive growth and enhance value?”
Deloitte Consulting LLP believes a great untapped source
of value within life sciences companies is manufacturing
operations. We have found that well-integrated, flexible
and cost-efficient manufacturing networks can help
companies balance short and long-term challenges and
create value for patients and shareholders.
This white paper was prepared for Chief Operating
Officers and senior manufacturing executives. It explores
current challenges and presents an effective approach
to developing responsive and cost-effective global
manufacturing strategies that drive growth and value.
The paper illustrates the Deloitte Consulting approach
by exploring:
• the rationale for a global manufacturing strategy
• the Deloitte Consulting approach to scenario planning,
and our proprietary, quantitative modeling tool, called
the Strategic Manufacturing Index (SMI)
• a client-tested approach to capitalize on
improvement opportunities
• ways we have helped clients in their efforts to improve,
including development of a global manufacturing strategy
for a large, international pharmaceutical company
• questions to get you started
[Figure 1]
This paper provides an insightful look at how improving manu-
facturing operations can help transform your company and
drive value for patients and shareholders.
Life Sciences Industry: Current Challenges
Lower revenue growth due to:
• increased competition from generics and the
growing number of “me too” drugs
• less leverage in pricing as consumer demand
is aggregated by governments or insurers
• longer product development cycles, which
shorten the period of patent-protected sales
• increased scrutiny from patients, caregivers, insurers, governments, and the equity markets due to recent high-profile product recalls
Increased operating costs due to:
• higher costs of bringing new products to market because of increased requirements
and difficulty in differentiating products
• greater dependence on external
innovations to fill development pipelines
• international expansion to enter new markets and operate global marketing,
selling and distribution networks
• an ever-changing, increasingly complex
regulatory environment
• protection of product integrity against
counterfeiting and re-importation
• ensuring business continuity by securing the enterprise value chain against internal and external threats, e.g., natural disasters, terrorism, a flu pandemic, etc.
Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences
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Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences
Why Develop a Global Manufacturing Strategy?Life sciences manufacturing executives need to apply a fresh
perspective to balance the present and future challenges
they face (Figure 2, next page). Short-term challenges, e.g.,
increasingly complex global supply chains, aging facilities,
very high or low equipment utilization, and long lead times
require executives to re-evaluate current manufacturing
strategies. Simultaneously, emerging long-term trends could
have even greater implications. Companies are shifting
from blockbuster drugs to smaller-volume products, and
are adopting new production technologies to support
innovative products and novel delivery platforms. These are
pressing issues for life sciences companies as pharmaceutical
portfolios become more complex to manufacture, and cost
pressures increase due to slower top-line growth. The key
to future growth and profitability is a well-integrated, cost-
efficient and responsive manufacturing network.
We believe Deloitte Consulting’s approach to Global
Manufacturing Strategy development can help to unlock
the hidden value in manufacturing operations. This is
accomplished through a comprehensive, enterprise-wide
assessment of the strategic objectives and unique challenges
that define a company, and then the identification of
improvements to the manufacturing network that directly
impact these issues. The Deloitte Consulting approach
guides clients through a process that helps to:
• determine internal and external drivers of change
• assess the current state of operations
• determine the gaps between current and desired performance
• develop an integrated plan to improve capabilities across
the global manufacturing network
3
1 Source: “Pharmaceutical Intermediates: A Long Climb Back,” Chemical Week, December 1, 2004; “Pharmaceutical Contract Manufacturing,” CIBC, December 2002
An effective global manufacturing strategy focuses on improving the organization’s ability to serve patients, manage risk and drive shareholder value.
[Figure 2]
Challenges Facing Life Sciences Manufacturing Executives
Short-Term Long-Term
Lower revenue growth due to:
• Increasing pharmaceutical pricing pressures, resulting in a focus on reducing costs
• Historically low production asset utilization (global utilization is less than 50 percent for API and formulation)
• Low-cost manufacturers from developing markets (e.g., India and China) that continue to increase their capabilities and add to overcapacity
• M&A activity that has consolidated manufacturing assets and increased redundancies
• Plants designed for high-volume production that require significant investments to repurpose
• Aging facilities that require significant investments to operate and maintain
• Long lead times and poorly integrated supply chains, resulting in ineffective plans and large amounts of unnecessary inventory
• Underdeveloped sourcing strategies
Increased operating costs due to:
• Shift from production of blockbusters to a larger number of smaller-volume products
• Increasingly complex operations required to manufacture, release and track product
• New production technologies for:
– manufacturing biotherapeutics
– manufacturing novel genetic-based products (e.g., RNAi, cDNA)
– novel formulations to support controlled release or new indications
– delivery systems that combine drug and device (e.g., inhaled insulin, nanotechnology)
– distinctive packaging types to support new products
• Increased safety and environmental performance requirements
• Highly uncertain and dynamic market demands
• Maintaining internal expertise to commercialize and manufacture new products
• Increased competition from biopharmaceutical companies commercializing their own products
Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences
Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences
The Deloitte Consulting Approach to Global Manufacturing Strategy DevelopmentOur approach first focuses on the overall strategic
objectives of the entire global company. We then work
closely with client teams to understand the areas that
drive growth in their company and focus
on those that intersect with the operations of the global
manufacturing network. The result is a “big picture”
view that connects the operational changes that can
further a company’s objectives.
From the “big picture” we work with the client to develop
the Global Manufacturing Strategy and Implementation
Roadmap that are key to the Deloitte Consulting approach.
The Roadmap:
• aligns manufacturing capabilities with evolving product
portfolio requirements
• incorporates improved manufacturing practices into the
company’s operations where applicable, selected from a
list of leading practices we have identified
• provides flexible responses to a range of possible
future scenarios
• identifies organizational impediments to achieving
strategic objectives
• serves as a comprehensive, yet executable guide for
implementing the strategy
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Focus on Patient and Shareholder ValueLife sciences companies share a central objective: improve
human life. We at Deloitte Consulting believe there is a
direct link between improved operations and increased
value to patients and this belief guides our work in helping
our clients improve their manufacturing operations. Our
experience shows that reducing costs and increasing
profitability can yield a strong, efficient company able
to reinvest larger sums in discovering and delivering
life-improving treatments. To help life sciences clients
achieve this level of performance, we focus on helping them
improve the manufacturing operations that most support
long-term company needs and, therefore, drive the most
shareholder and patient value.
To that end, Deloitte Consulting has developed the
Enterprise Value Map (EVM). The EVM is used to illustrate a
company’s operations, how these drive value and highlight
the areas with the most potential to yield more value
throughout the whole company. This map allows us to help
our clients quantify and prioritize specific recommendations
for change, and to aggregate the total impact of these
changes on their ability to drive patient and shareholder
value. The figure below represents a condensed version of
our EVM for life sciences manufacturing networks, with a
small subset of operational levers that can help drive patient
and shareholder value.
Enterprise Value Map for Life Sciences
Example levers:• Improvetimetomarketthrough
bettercoordinationoflaunchactivitiesacrossthesupplychain
• Buildflexibleoperationsabletorespondtochangingmarketdemands
• Enhancefillratesandimproveproductavailability
Example levers:• Increaseefficiencyoftransactional
processesfromordertocashbyrationalizingbusinessprocessesandinformationtechnology
• Capturepricereductionsbyanalyzingrawmaterials,sourcingstrategiesandrenegotiatingsuppliercontracts
• Reducetaxburdenbydesigningnetworkofassetsacrossgeographies
Patient & Shareholder Value
Revenue Growth Operating Margin Asset Efficiency
InventoryProperty,Plant &
Equipment
Income Taxes
Cost ofGoods Sold
(COGS)
PriceRealization
VolumeReceivables
&Payables
Example levers:• Rationalizemanufacturingand
distributioncapacitytoimproveassetutilization
• Improvedemand/supplyplanningtoincreaseinventoryturns
• Improvedaysreceivablesandpayablesbyreducingorder-to-cashcycle
Selling,General &
Administrative(SG&A)
The Deloitte Consulting Approach
Operational Components and Business Processes
SeviceDeliver MAKE Source PlanDesign
Manufacturing is critical to an efficient supply chain
What Drives Your Business
Customer & Market Drivers• Product Portfolio• Brand Reputation• Customer Requirements• Market Trends
Environmental/Market Drivers• Regulatory Environment • Trade Agreements• Import/Export Risk
Business Drivers• Strategic Intent/ Core Competencies • Acquisition Strategy • Competitors Strategy
Financial Drivers• Return On Investment and Assets • Cost Reduction • Cash Flow
Operational Drivers• Process Maturity• External Benchmarking• Key Performance Indicators
How to Make It Happen
Global Manufacturing Strategy
Implementation Roadmap
What Will Drive Your Business Further
Supporting Infrastructure
IT HR Finance/Tax
Deloitte Consulting’s Strategic Manufacturing IndexTo build a flexible, cost-effective platform for the future,
life sciences manufacturing leaders must determine how
to align the requirements of evolving product portfolios
with the capacities and capabilities of their manufacturing
network. This alignment requires assessment of present and
future product portfolio demands and a comparison of these
needs to current and projected manufacturing capacity.
Understanding demand requirements and available capacity
across the network enables leaders to evaluate and improve
their global asset utilization. The challenge lies in making
these direct “apples to apples” comparisons among sites in
a timely fashion.
To help our clients address this challenge, Deloitte Consulting has developed the Strategic Manufacturing Index (SMI) tool set that provides a standardized approach to calculate and compare demand, capacity, and utilization across a company’s entire manufacturing network. The SMI can be used to help manufacturing executives answer key questions, including:
• How much internal capacity is needed? How much
capacity is needed across different technology platforms
and at what levels of scale?
• What is the right amount of highly flexible capacity, and
what is the right amount of dedicated capacity?
• By outsourcing certain products, how much and what
type of capacity is no longer needed?
• How well does the organization’s current network meet
these needs?
Using SMI, the demands of each manufacturing step are
calculated by accounting for three dimensions:
• Time represents the required processing time of a
particular step
• Scale of process volume represents the average capacity
required for the step
• Fit of process operations represents the required
number of unit operations per batch manufactured
For any given manufacturing step, the demand index is
therefore equal to the normalized time factor (X), scale factor (Y), and fit factor (Z). Because this technique
offers a standardized approach to determining demand for
each of a company’s manufacturing steps, demand can be
aggregated across sites, across technologies, or even across
the entire global network
Demand IndexY
X
Scale of Process Volume
Time
ZFit of Process Operations
Evaluating Demand
Understanding Utilization by Evaluating Capacity and Demand Together
Utilization =
Demand Index
Capacity Index
Y Scale of Process Volume
X Time
ZFit of Process Operations
Evaluating Capacity
Capacity Index
Y Scale of Process Volume
X Time
ZFit of Process Operations
Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences
Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences
87
Using SMI, the potential capacity for each manufacturing
area is calculated by accounting for:
• the amount of time the area is available for use
• the scale that represents the average volume of the
equipment
• the fit that represents the number of pieces of equipment
in the area
For a given manufacturing area, the capacity index is
therefore equal to the time factor (X), scale factor (Y), and fit factor (Z) that have been normalized to the
company’s average manufacturing step. Similar to demand,
this standardized approach of evaluating capacity means
that capacity can also be aggregated across sites, across
technologies, and across the company’s global network of
manufacturing assets.
Using SMI, demand and capacity can be directly compared
since both the demand index and capacity index use the
same three dimensions and are normalized to the company’s
average manufacturing step. Dividing the aggregated
demand index at a particular site or for the entire global
network by its corresponding aggregated capacity index
yields an overall percentage for capacity utilization. By
accounting for the three dimensions of time, scale, and fit,
this approach provides a complete and unbiased view of
capacity utilization across sites, technologies, or a company’s
entire global network.
The result of using SMI is that manufacturing leaders can
obtain a standardized and holistic view of demand, capacity,
and utilization both within and across a global network
of sites. This insight will allow them to make better long-
term strategic decisions to align evolving product portfolio
requirements with the capacities and capabilities of the
global manufacturing network.
Demand IndexY
X
Scale of Process Volume
Time
ZFit of Process Operations
Evaluating Demand
Understanding Utilization by Evaluating Capacity and Demand Together
Utilization =
Demand Index
Capacity Index
Y Scale of Process Volume
X Time
ZFit of Process Operations
Evaluating Capacity
Capacity Index
Y Scale of Process Volume
X Time
ZFit of Process Operations
Demand IndexY
X
Scale of Process Volume
Time
ZFit of Process Operations
Evaluating Demand
Understanding Utilization by Evaluating Capacity and Demand Together
Utilization =
Demand Index
Capacity Index
Y Scale of Process Volume
X Time
ZFit of Process Operations
Evaluating Capacity
Capacity Index
Y Scale of Process Volume
X Time
ZFit of Process Operations
Understanding Utilization by Evaluating Capacity and
Demand TogetherEvaluating CapacityEvaluating Demand
Contingent Strategies
Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences
Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences
109
Scenario Planning Illustrated
Ultimately, defining and executing the appropriate core and contingent strategies provides our clients with the “strategic
flexibility” to successfully react to a wide range of future possibilities.
Core Strategies
Identify Issues
Service
Products
Organization
Operations (Staff/Process)
Technology
Partnership
Strategy D
evelop
men
t
Scenario
Iden
tification
, Selectio
n an
d D
efinitio
n
Economy
Technology
Regulations
Market/Competition
Consumers
Globalization
Politics
Measure Performance
Identify Triggers
Scenario Planning for Life Sciences ManufacturingManufacturing leaders in life sciences companies must continually address short-term pressures to reduce cost
with the long-term need to build a cost-effective, flexible platform for the future. However, leaders cannot
predict the future uncertainties that can significantly impact the effectiveness of strategies they execute today.
How can manufacturing leaders make strategic decisions in light of an uncertain future?
Sourcing Strategy Exampleproduct portfolio was segmented
into three buckets: strategic, important and least important
Core Strategy • Always internally produce “strategic” products
• Always externally produce “least important”
products
Contingent Strategy • If demand increases:
– Tap into dual sourcing
– Outsource more “important” products
– Build capacity
• If demand decreases:
– Internally source more “important” products
– Utilize production capacity for development
Today’s decisions…Rely upon predictions
of tomorrow
• How much internal capacity should be built or
maintained?
• What products or technologies should be internally
sourced and which should be outsourced?
• Which facilities should be expanded and which
closed?
• How can flexibility be built into operations at a
reasonable cost?
• Will product demand grow, slow or decline?
• Will contract manufacturers in low-cost countries
achieve the expertise and regulatory compliance
needed to support outsourced operations?
• What regulatory changes does the future hold and
how much investment will they require?
At Deloitte Consulting, we utilize Scenario Planning techniques to help clients react better to the uncertainties of the future.
Rather than forcing leaders to make a “best guess” about aspects of the future that are out their control — exposing them
to great risk if that guess is wrong — Scenario Planning is used to help evaluate how strategic decisions made today might
impact an organization within a range of possible future scenarios.
During a Scenario Planning workshop, facilitators lead participants through testing of “strategic options” (i.e., a
combination of actions across areas such as sourcing strategy, risk management strategy, network structure, geography,
and flexible capacity) against possible future scenarios not within the company’s control, such as “changes in product
demand” or “changes in regulations.” The testing uses evaluation criteria such as “reduced cost structure,” “managing
growth,” “remaining flexible,” and the “ability to manage product stock-out risk” to determine which strategies perform
successfully and which fail within a range of future environments. The resulting output is the identification of successful
“core strategies” that form the backbone of an implementation plan and “contingent strategies” that perform well only if
and when specific environmental conditions become a reality.
Our Structured Process for Strategy Development
Global Manufacturing Strategy Development: The BreakdownDeloitte Consulting’s manufacturing strategy approach can be broken down into four distinct phases.
The first two phases identify possible improvement opportunities. The third and fourth phases prioritize a
defined set of strategic options, select a strategy, and develop an implementation plan. While these phases
form the basis of our approach, application is flexible and determined by a company’s unique situation, culture,
and change initiatives. Structuring projects into four distinct phases achieves a comprehensive diagnosis,
thorough assessment of viable strategic alternatives, and a resulting strategy that has buy-in and ownership
from key stakeholders.
• Develop a set of strategic options to fill
gaps in capacities and capabilities across the
manufacturing operations – each strategic
option provides suggested actions in areas
such as sourcing strategy, physical assets, asset
location, centralization of key technologies,
flexible vs. dedicated configurations,
co-location of facilities, synergies with other
operations, and cost and tax structures.
• Provide a comprehensive list of relevant
manufacturing operations leading practices
that we have identified from within and beyond
the life sciences industry.”
• Analyze potential drivers of environmental
change that cannot be directly controlled
(e.g., regulatory changes, level of competition,
advances in technology, tax law, etc.) and
prioritize them based on potential impact to
the company.
• Construct plausible future scenarios that use
the elements of environmental uncertainty to
test the effectiveness of strategic choices.
• Conduct a facilitated executive workshop, with
the following objectives:
– Test the performance of each strategic option
against the uncertain future conditions
scenarios
– Understand how strategic decisions might
perform in possible future environments
– Use the strategic options that performed
most effectively within future test scenarios
to identify core strategies – Identify
contingent strategies that can be executed
if and when specific environmental
conditions occur
– Typical Activities – Typical Activities
– Typical Activities
Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences
Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences
Phase II: Options Development and Scenario Testing – Typical Activities
• Identify the appropriate workstreams, what’s needed to get them in place, associated timeframes and the ripple effects of these changes.
• Assign ownership responsibilities and create detailed plans for implementation activities.
• Assess key implementation risks and develop mitigation strategies.
• Develop a change management and communication plan.
Phase IV: Implementation Planning – Typical Activities
Phase III: Business Case Development – Typical Activities
• Develop comprehensive business cases based on models that detail the cost, operations requirements and anticipated benefits of core and contingent strategies.
• Develop recommendations based on the business case that aligns most closely with
the long-term financial and operational goals of the manufacturing organization and those of the entire company.
• Prepare executive briefings to present recommendations and gain approval of key stakeholders.
Phase I: Situation Analysis – Typical Activities
• Interview key stakeholders to identify, validate, and prioritize the company’s current and future business challenges and objectives.
• Segment customers and markets and identify current and future consumer requirements.
• Assess the current and future product portfolio, and determine the ability to meet evolving consumer requirements.
• Translate projected product volumes into the capacities and capabilities for each component of manufacturing operations.
• Identify gaps between current performance and future business requirements.
• Assess current improvement initiatives and estimate their potential impact on manufacturing operations.
• Evaluate the current capacities, capabilities, and performance of the existing manufacturing operations against effective practices and benchmarks from life sciences and other industries.
• Understand the level of regulatory compliance in manufacturing operations, and assess current risk mitigation practices.
Phase I
SituationAnalysis
Phase II
OptionsDevelopmentandScenario
Testing
Phase III
BusinessCaseDevelopment
Phase IV
ImplementationPlanning
1211
Case StudyThe client: A large global pharmaceutical company
The challenge: The client’s manufacturing organization faced
several challenges in constructing a long-term
strategy, including:
• Shifting the product portfolio from
small-molecule to biotechnology products
and from low-potency to high-potency
compounds
• Significant use of manufacturing assets
for non-strategic products, including third
party business
• Excessive inventory levels
• Current capacities and capabilities that did not
support the client’s long-term needs
We have helped a number of global companies
execute our approach to improving pharmaceutical
and biotech manufacturing and these clients have
achieved benefits including:
• Focused, more efficient manufacturing
organizations
• Improved supply assurance
• Flexible sourcing strategies that proactively manage
risk and cost
• Improved speed and reduced cost for new product
launches
• Identification of core competencies and realignment
of roles and responsibilities of the manufacturing
group and supporting functions
• Identification of clear investment guidelines focused
on executing the organization’s defined strategy
• Improved operating costs
• More efficient use of assets
• Confidence in managing future demands
The Deloitte Consulting approach: Deloitte Consulting helped a dedicated client
team use our structured four-step approach
(situation analysis, options development and
scenario testing, business case development, and
implementation planning) to analyze and understand
the organization’s capacities and capabilities in
relation to projected business requirements. The
analysis revealed that our client’s capacity utilization
was significantly lower than originally thought.
Our client had estimated capacity utilization in
the range of 60-70 percent; however, this number
was inflated due to inconsistent evaluation and
reporting standards for asset utilization across sites.
In addition, the client’s original utilization evaluation
only examined time, rather than three standardized
dimensions of time, scale, and fit, around which
long-term improvements can be made.
Using Deloitte Consulting’s Strategic Manufacturing
Index (SMI), we helped the client standardize
calculations across sites and discovered that asset
utilization was actually in the range of 40-50 percent. It
was also revealed that third-party business comprised a
much larger percentage of total capacity than originally
thought. A clear picture of actual utilization enabled
the combined Deloitte Consulting and client teams
to explore a wider range of options to match future
demands with the asset base.
Typical of life sciences companies, our client was also
challenged by predicting future demand across the
product portfolio, as it had launched new drugs with
highly uncertain patient demand. A scenario planning
workshop helped our client identify core and contingent
strategies, including attributes of risk management,
sourcing strategy and capacities and capabilities.
Relevant and effective core strategies were identified
and allowed our client to make strategic decisions
on internal sourcing and outsourcing of products.
Additionally, contingent strategies were developed that
could be executed in future situations where product
demand was significantly above or below forecast.
The benefits: • Effective core and contingent strategies helped
align physical assets with the future capacities
and capabilities required by these strategies.
• Identified over $300 million NPV savings over
10 years.
• Reduced overall cost structure and capital requirements.
• Realigned manufacturing network and reduced
site locations.
• A five-year implementation roadmap created
for executing the strategy is expected to grow
capacity utilization to 70 percent by 2009 (versus
an originally projected 40 percent), improve return
on assets and decrease cost of goods sold.
• A flexible sourcing strategy (the result of Scenario
Planning) allowed our client to meet a sudden,
four-fold increase in product demand and
demonstrated future ability to adjust to similar
changes across the entire product portfolio.
Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences
Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences
1413
How Deloitte Consulting Can Deliver
Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences
Linking Improvement to Transformation:A Global Manufacturing Strategy for Life Sciences
1615
We are distinguished by:• Strong functional capabilities and real-world
manufacturing experience in life sciences and across a
breadth of industries.
• A virtually unparalleled range of capabilities, with access
to resources that can provide services in areas such as
corporate strategy, operations, revenue enhancement,
enterprise risk management, human capital, corporate
finance, real estate, tax, and US/EU regulatory
and compliance.
• A strong implementation bias that blends analytical rigor
and industry insight with a pragmatic mindset to the
services we provide, recognizing that a strategy which
cannot be implemented is meaningless.
• Strong life sciences industry experience and a track record
of providing value-enhancing services. Among Deloitte &
Touche USA clients are 10 of the top 10 pharmaceutical
manufacturers, 8 of the top 10 biotech companies, and
10 of the top 10 medical equipment manufacturers (as
ranked by Hoover’s Inc.).
• A future-oriented approach that helps our clients look
forward over five- and 10-year time horizons and test
solutions for feasibility in uncertain future environments.
• The capabilities to support global initiatives for our clients
in the U.S. and Europe.
• A distinctive collaborative and team-oriented approach
where Deloitte Consulting professionals work side-by-side
with clients.
Our combination of distinctive skills, capabilities and approach positions Deloitte Consulting as a valuable
advisor for life sciences companies.
Why Choose Deloitte Consulting?
• What is your company’s strategic mission and vision,
and how does the manufacturing team contribute?
• Broadly defined, who are your key stakeholders, and
how do you provide value to them?
• How do stakeholder groups assess the performance of
manufacturing operations?
• What are your key strengths, weaknesses, challenges,
and opportunities?
• What is your current performance, and how does it
compare to others in your industry?
• Do you have the information you need to make critical
decisions in a timely manner?
• What are the key drivers of change in your
environment, and how will you adapt?
• What are your competitors doing to change?
• What can you learn from other industries?
• How do you currently measure capacity utilization
across your network?
• Do you feel comfortable that utilization across your
network is calculated in a meaningful way?
• How will changes in your product portfolio and
sourcing strategy impact your required manufacturing
capacities and capabilities in the future?
What Now?
Questions and Next Steps to Consider for Creating a Global Manufacturing Strategy Deloitte Consulting recognizes that output reflects input. Therefore, it is critical to ask the right questions at the start of
developing a robust Global Manufacturing Strategy.
Below are questions you can ask about your own organization to begin the process.
Contact Information
ServiceLineLeaderLifeSciencesConsulting
GlobalDirectorLifeSciencesConsulting
Jacques Mulder PrincipalDeloitte Consulting LLP25 BroadwayNew York, NY 10004-1010Tel: [email protected]
Pete MooneyPrincipal200 Clarendon St., Suite 2000Boston, MA 02116-5091Tel: [email protected]
This publication contains general information only and is based on the experiences of Deloitte Consulting LLP practitioners.
Deloitte Consulting LLP is not, by means of this publication, rendering business, financial, investment, or other professional
advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis
for any decision or action that may affect your business. Before making any decision or taking any action that may affect
your business, you should consult a qualified professional advisor. Deloitte Consulting LLP, its affiliates, and related entities
shall not be responsible for any loss sustained by any person who relies on this publication.
NotesNotes
Notes
As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/aboutfor a detaileddescription of the legal structure of Deloitte LLP and its subsidiaries.
Copyright © 2008 Deloitte Development LLC. All rights reserved. MemberofDeloitte Touche Tohmatsu