2018 CPhI worldwide at Madrid

About CPhI

CPhI is an international brand where UBM (PharmExec, LCGC)  organizes the largest Pharmaceutical performances in terms of manufacturers’ number and companies involved.

UBM is now a part of Informa, the leading B2B Information Services group. This is an important consideration that I could say, the potential of a company with such an immense intangible knowledge is tremendous … (2017 FY results).

The Event

As the world’s largest pharma event, with over 45,000 attendees and 150 countries represented, CPhI is an organization that you shouldn’t miss.

The allocation of the categories, six at the same time (CPhI, InnoPack, P-MEC, iCSE, FDF and bioLIVE) was smart and allowed to everyone the free movement around them, however if it is your first time at IFEMA Madrid (+10 buildings), the first challenge will be completing the tour without getting lost.

My first thought was: I don’t know any of these companies’ names …

CPhI worldwide focused its attention mostly on manufacturers and suppliers of API and excipients from all around the world. My first thought was: I don’t know any of this companies’ names – taking into account that I was surrounded by Chinese and Indian CMOs – nevertheless after walking around, I finally recognized some of them and even we got involved in very interesting conversations.

The most visually-attractive areas were InnoPack and P-MEC, where Manufacturers are proud of showing their best machines and latest technology trends. This territory was well dominated by European brands a few asian companies (Japanese, Korean or Chinese).

  

Experience

The bottom line is oriented to sell and maximize your connections in order to expand your strategic business alliances, so in case you are interested in educative-content, I strongly recommend you to join any of the Pharma Insights, which are presentations where an invited company and speaker briefly share a viewpoint or project with a particular industry interest: Emerging Markets, Biologic drug products, Consumer trends, Serialization, Biotech support, Supply Chain, etc.

 

Conclusions

Pharmaceutical Industry’s innovation is something that believe it or not, you can feel it coming as a Formula E speed car (electric Formula 1); quiet and in a Breakneck (fast) speed

In fact, there are now more products in development than at any other point in history!

Talented CDMOs, API manufacturers, formulation specialists, generics producers and most recently, Biomanufacturers (large molecules) are completely changing the rules of the game and forcing regulators to a complete update.

I’ve detected a trend on all kind of pharmaceutical companies to break with its internal barriers among departments, in order to ensure innovation and creating smoother and more transparent operations …

Finally, from the Supply Chain perspective, topics like Continuous Manufacturing, the growing Contract Manufacturing Industry, Biopharmaceutical operations and many others related, are just the cherry on the cake of creating a leanest and more efficient network across the industry.

 

Supply Chain is like PGA campaign ‘Live under par’. Always under pressure of delivering excellence every week

 

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Why is Supply Chain the Rockstar of Consumer Pharma?

The obsession of drug makers to re-evaluate and minimize Operational costs is the New Black. Nowadays Consumer Health (over-the-counter or GSL drugs) has a profit formula quite similar than the Retail business, but unfortunately delivering safety and quality are simply not enough.

The decrease trend on sales of the biggest US drug retailers (WBA, MCK, CVS) is due to the consumers shift from traditional to online shopping “the Amazon effect”.

As a consequence, because of discounts and pricing pressures, the profit strategy is getting lower. Moreover fighting against Amazon is not a solution, it’s just like a patient who tries to cure himself using a Placebo.

So what?

Industry really needs a Turn the ship around, which implicates radically changing Supply Chain Strategy from Deliberate to a more Emergent one.

Indeed, the future is getting harder to read and winning strategies that used to work in the past are not effective anymore … this is the point that differentiates you from the rest.

In particular, if we analyze the evolution journey of Retail and FMCG to an Agile Supply Chain Management, we will obtain a present-day version of the 3 pillars of Organizational Transformation: People, Processes and Technology.

  • Companies like Walmart Unilever and P&G are hiring the best talents where market skills and in-depth technical knowledge are the priorities to ensure creativity coming from top-rated professionals.
  • Their excellence in processes goes from the latest up-to-date Lean methods (TOC, 6Sigma …) to the most innovative Customer Segmentation, Supply Chain Resiliency and Circular models. 
  • They invest in technology. Advanced Analytics such as: machine-learning and AI enhances and even automate, decision making by reinventing operational models.

… and this is just the beginning.

Supply Chainers who are able to adapt its company value chain, make good products even better and at the same time improving Profit Margin, will ensure that the company model will not be disrupted in the future.

References:

  1. Bezos Starts the online drug war https://chiefexecutive.net/bezos-starts-the-online-drug-war/
  2. Gartner Top 25 Supply Chain list http://www.argentus.com/gartner-global-executive-partner-speaks-about-2017s-top-25-supply-chains-list/
  3. Deliberate versus emergent strategy https://hbswk.hbs.edu/item/the-business-of-life
  4. 2018 Trends to disrupt pharma supply chains https://www.pharmalogisticsiq.com/regulations/news/2018-trends-to-disrupt-pharma-supply-chains
  5. Beyond Supply Chains Empowering Responsible Value Chains http://www3.weforum.org/docs/WEFUSA_BeyondSupplyChains_Report2015.pdf