Company size: 22,000 employees; Valuation $45B
Industry sector and location: Biologics US, Europe & Asia
Assignment Duration: Nine months
Client Sponsor: Global Head Product Operations – Small Molecule OpU
- Following a major acquisition which more than doubled the client’s product portfolio, the client wished to create product operations strategies for the in-line and late stage pipeline products across all the business units which made up the newly combined business.
- Primecore was retained to complete this task for one of the business units, which accounted for approximately $5B in annual revenue.
- The portfolio of products consisted of twenty-three products serving five key therapeutic areas.
Each product Operations strategy was to define a 10-year time horizon of operational activities by unifying data from commercial, research, and operations units into concrete outcomes or probable strategic scenarios, to provide a framework for Operations decision analysis.
The strategies were to set out the “Marching Orders” for Operations.
Primecore worked closely with each Product Lead, who would become the ultimate owners of the product strategy. Primary input, review and endorsement was required from the Global Brand Teams, Global Product Teams, Global Development Teams, and Global Manufacturing Teams. Primecore then synthesised this input to develop the product strategy.
For each product, Primecore prepared a Product Family Overview based on the Target Product Profile.
An analysis was performed of the Development & Commercial Outlook and Goals, the Competitive Landscape and the Demand Scenarios based on the Long-Range Plan.
An analysis of the Manufacturing Network Capacity was then performed, to evaluate if the supply chain had the capacity and the capability to meet the long range forecast commercial requirements.
A Cost of Goods analysis was completed.
An analysis was performed on the technical, compliance, supply and regulatory risks impacting Operations capability, to identify strategic mitigation requirements.
The analysis of all these elements informed the identification of the Strategic Programs and Projects which the client needed to prioritise and support, in order to meet the Commercial Objectives of the product.
The output of the analysis for each product was prepared in a standard product operations strategy document template, with detailed references to all data sources and which could be updated by the Product Lead at the appropriate frequency.
The approach deployed required colleagues in the two legacy organisations to develop new understandings of system capabilities and network capacity capabilities.
The critical analysis and challenging of the long-range planning forecasts provided confidence in the unit level demand forecasts for all indications, markets, presentations and dose strengths.
Assumptions underpinning the timing of operational decisions for pipeline programmes were clarified.
Rigorous capacity analysis of the external supply chain network was performed for each product.
Projected capacity utilisation scenarios were developed based on the commercial forecasts and adjusted for inventory policy, potential loss of product expiry timing and authorised generic launch events.
Appropriate supply network interventions were agreed to address any supply, compliance, technical and regulatory risks.
Significant programmes to reduce cost of goods were identified.
The client has established a strategic operations program governance structure, to enable successful program realisation.
The approach adopted by Primecore ensured the on-time completion of the eighteen strategy documents.
The development of a joined-up product operations strategy requires all the various input owners across the enterprise to be aligned and connected.
The rigour required by the process to create and maintain these documents enabled the organisation to develop an enterprise wide consistent and accurate picture of the supply network and operations system capabilities.
With this shared and aligned view established, the organisation was able to define and prioritise the strategic initiatives required to deliver the commercial objectives.
The organisation has learned the benefit which enterprise wide alignment and process rigour provides when developing operations strategy and is now using this approach to refresh product operations strategy as required. The organisation will utilise this approach with any future product acquisitions.