Lean thinking works well for the automotive industry, but is it really suitable for pharma supply chains? 'Agile' techniques may be more appropriate and promising for the industry's uncertain factors.
In the wake of cost pressures, Lean thinking has made its appearance within the pharmaceutical industry. Nostrapharmus notes that we were asked to look at, and learn from, other industries that have been under cost pressure for decades. Lean seemed the answer to all our questions: it focuses on eliminating all forms of waste in the supply chain, including spare resources such as inventory and equipment. This works very well in an environment where demand is stable and product variety is low...in fact the very environment in which Toyota developed Lean thinking.
But, does this work for us? Eliminating waste and, thus, fat from the supply chain does cut costs, but with it also comes risk: it makes the supply chain increasingly vulnerable to disruptions and unpredictable events as there is no slack to fall back on. In the car industry that may not be such a problem - all it means is the customer will just have to wait a little bit longer until the car is ready. Patients, on the other hand, have to take their medication immediately; sometimes their life depends on having the product available day to day. We have the moral obligation to guarantee the best possible treatment to the patients, and consequently, securing the supply of medication.
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Keeping the supply chain agile.pdf
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