Supply Chain Excellence in the Pharmaceutical Industry: Novartis – A Case Study – free download




This thesis is intended to research and explore key aspects of supply chains in the
pharmaceutical industry. The research contained within was part of a larger research effort
called the Supply Chain 2020 Project. The Supply Chain 2020 Project was intended to
provide insight into major research questions about the future of supply chain excellence.
Within the pharmaceutical industry there are many sources of operational efficiencies
which contribute to excellence; operational efficiencies alone are not sufficient to deem a
supply chain as excellent. The author chose to explore one particular company, Novartis
AG, and examine the company’s supply chain to determine if it fit the criterion of

The author utilized existing sources of information about the pharmaceutical
industry and the company in addition to personal, on site interviews of key management
within Novartis. This report contains a detailed description of the supply chain strategy,
framework, and operating model for Novartis. Within the operating model, the author
describes key practices which support key company strategies and competencies.
Novartis utilizes unique approaches to managing its supply chain including:
customized KPI metrics; logistics and financial hubs; asset and resource sharing; tax and
revenue optimization strategies; collaborative forecasting, and parallel production
development strategies.

The author describes the details of the internal supply chain management
processes and illustrates how these processes support and fit the overall company
strategy. Novartis has a clearly focused strategy that revolves around research and
development of new, patent protected, chronic illness products and the ability to bring
them to market quickly and efficiently.


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