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The supply chain: Where push and pull are friends

from Pharmaceutical Manufacturing

For the past decade, pharmaceutical manufacturers have struggled to cut inventories in their supply chains. On the surface, they have made little progress. Gains in efficiency seem to be swallowed by rising complexity and volatility. The average inventory to COGS ratio in pharma — 55 percent — is the same as it was 10 years ago. Pharma managers looking for a way out of this situation could learn much from industries like electronics, which have tackled many of the same challenges with considerable success. Fragmenting markets and increasingly diverse customer demands certainly have added to supply chain complexity. more

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