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INTELLIGENT
CONTROL TOWERS FOR
PHARMACEUTICAL
AND MEDICAL DEVICE
SUPPLY CHAINS
Maximize supply chain performance for
manufacturers with network-wide visibility,
collaboration, automation and prescriptive analytics
CONTROL TOWERS FOR PHARMA & MEDICAL DEVICES | ONE NETWORK ENTERPRISES | WWW.ONENETWORK.COM
CONTROL TOWERS FOR PHARMA & MEDICAL DEVICES
By eliminating information delays across your supply chain, a Control Tower Operational Benefits
change in demand at one end will ripple quickly across your
internal plants and contract manufacturers, and across every • A comprehensive supply chain and logistics model
tier in your supply network. You’ll be able to continuously that represents all parties and processes, from
match supply to demand in near real time. When demand planning through execution, using AI-enabled
shifts occur, you can respond immediately, and reallocate network-optimization
inventories optimally. • A platform for digital transformation that reduces the
need to manually manage and integrate data across
With intelligent NEO agents, you’ll automate routine tasks to internal systems and external partners
free up your expert staff to focus on the exceptions – where • Quickly identifies in real-time the issues impacting
they can add the most value. NEO agents work 24/7 to predict performance and resolves them quickly
problems, rank your options, and run optimizers. Then your • Advanced analytics, reporting and insight leverage a
team can use prescriptive analytics to find solutions sooner, single version of the truth (SVOT) to drive improved
when there are still many low-cost options. You’ll have the performance across supply, logistics and fulfillment
visibility, the tools and AI-powered workbenches to optimize • Early warning to potential issues eliminates
and manage your supply chain most effectively. knock-on effects
• Detailed tracking of transactional and resolution
You and your contract manufacturers, your suppliers, packers, history for continuous improvement
carriers, and customers can finally work in unison on the • Detailed tracking and tracing of products ensures
same platform, to share plans and forecasts, orders and compliance so promises and commitments are met
shipments, inventories and ETAs. • Enhances trust and efficiency across trading partners
with real-time data and a single version of the truth
The result? You’ll see more reliable supply and streamlined • Rapidly connect to alternate or new trading partners
production. You’ll increase service levels with fewer on the network, including suppliers, CMOs, packers,
expedites, and lower costs. In other words, you’ll have greater carriers, wholesalers, distributors and customers
agility, efficiency and resilience.
Control Tower Financial Benefits
A collaborative network means you’ll be better positioned to • 10-30% inventory reduction across healthcare,
take advantage of new opportunities and mitigate risks. You’ll CPG, retail and industrial segments
be able to ramp quickly and engage your network to capitalize • 12-50% reduction in manual planning, scheduling
on new drug and device approvals. And you’ll be more and execution management overhead
responsive to demand surges and more resilient to supply • 1-8% improvement in inbound delivery performance
disruptions, both man-made and natural. and outbound customer service levels
• 30-50% reduction in premium freight costs
• 10-40% reduction in overall annual
transportation costs
• 2-10% increase in equipment utilization
MEETING THE CHALLENGES IN THE • Meeting the track and trace requirement in the Drug
PHARMACEUTICAL AND MEDICAL DEVICE Supply Chain Security Act (DSCSA) passed by in 2013:
SUPPLY CHAINS Although the FDA has postponed enforcement, it’s only a
matter of time before penalties will kick in.
Let’s take a closer look at how a control tower on a network
• The threat of counterfeit and substandard drugs: A
platform meets the challenges faced by the pharmaceutical
worldwide problem, the WHO reports that one in ten
and medical device supply chains. The NEO Platform helps
drugs in middle- and low-income countries are fake
address numerous challenges, including:
or substandard. And the Wall Street Journal recently
reported that a counterfeit Pfizer vaccine was discovered
• Lack of (or ineffective) demand planning, collaboration
in Mexico and Poland.
and execution
• Making effective use of big data in the supply chain,
• Inability to share timely information and collaborate
and effectively handing the high volumes of data that
with contract manufacturing organizations (CMOs) and
are produced for patient and drug testing, as well as
multiple tiers of suppliers
managing inventory and the supply chain.
• Lack of visibility to inbound supply, inventory and
production and quality
These challenges manifest in numerous ways in the day-to-
• Difficulty in coordinating transportation between internal
day operations. Even in the best of times, many companies
sites and external parties. For example, a highly manual
are often struggle to answer basic questions, such as:
effort is often required to coordinate supply to CMO sites
and from CMO to own manufacturing sites.
• Where is my shipment?
• Lack of collaboration with suppliers, contract
• When will it arrive?
manufacturers and other partners, along with slow
• What’s causing the delay? What orders are impacted?
decision response times.
• Where have I got a problem? How do I solve it at lowest
• Poor supplier on-time in-full (OTIF) performance.
cost yet keep high service levels?
• Difficulty in effectively orchestrating workflows between
• How should I reallocate my supply to fulfill this demand?
multiple parties.
• What will it cost, and who else will be impacted?
• Multiple instances of ERP which are difficult to maintain
• What’s my demand across all channels?
and customize.
• How do I optimize my decisions across the region, when
• A lack of a global master data management solution
all my decisions are so interconnected?
for the enterprise (and the supply chain) thus requiring
• How can I offload routine chores, so I have more time to
master data be maintained at the ERP instance level.
focus on what matters?
• Increasing complexity and sensitivity of new materials,
• What are my alternative sources of supply?
devices and drugs, that are more complex to
• How can I communicate with my suppliers and carriers
manufacture, and require careful handling, raising the
more quickly when there’s a disruption?
bar and the costs of manufacturing and shipping them.
• How can I on-board new suppliers more quickly?
While these challenges can seem overwhelming, new suppliers, manufacturers, co-manufacturers, packers, logistics
technologies like multiparty network platforms and providers, distributors, and customers.
intelligent agents, have enabled new solutions that enable The total number of parties can be in the thousands. It’s
pharmaceutical and medical device companies to rapidly not a problem for the network, as companies only need to
digitize and secure their supply chains, gaining better on-board once, and chances are good that many of your
visibility, improved optimization and collaboration, better customers, suppliers, and logistics providers are already on
accountability, traceability, compliance and security. the network, greatly accelerating projects and time-to-value.
Companies can now become demand-driven, using a real- A Single Version of the Truth
time multiparty platform, powered by machine learning, to Having all business partners on one backbone lets information
help synchronize supply to demand to improve customer flow throughout the network seamlessly and in near real
service levels and optimize the flow of ingredients, drugs, time. It synchronizes your ERP systems to the network.
parts and devices. And they can do it while lowering This means uncertainty and variability are minimized,
inventory levels, and reducing costs and waste throughout reducing the “bullwhip effect,” where order quantities are
the supply chain. distorted and amplified upstream in the supply chain. It
also means a problem anywhere in the network is quickly
WHAT MAKES ONE’S INTELLIGENT recognized and can be dealt with in a fraction of the time of
CONTROL TOWER DIFFERENT? traditional approaches. This reduces the “bullwhip effect”
on disruptions, where a disruption in the supply chain gets
One Network is the industry’s only solution with a fully
amplified as it traverses upstream and affects the rest of the
integrated data model from the consumer to suppliers and all
supply chain. The longer the time for the original disruption
logistics partners, providing a network-wide, real-time single
to be felt elsewhere in the network, the greater the
version of the truth. One Network’s Control Tower is powered
amplification. Squelching small problems before they become
by the NEO Platform, and here are some of the unique
large problems requires quick notice and action - one of the
features that this network platform makes possible.
many benefits the Network approach.
Truly One Network, One Solution
A Complete Set of End-to-End Capabilities
One Network has been a technology leader for nearly 20
One Network is the only solution that offers a seamless,
years, and the advance that has provided the greatest
integrated and comprehensive suite of solutions for
performance benefit for customers is the sharing of
pharmaceuticals and medical devices, across all supply chain
applications, data, and transactions on one common business
functions. These enable planning, execution and optimization
network. Here the entire supply chain can be viewed,
across all supply chain functions, to maximize results. This
managed and optimized as one unified system, as opposed
lets drug and device companies maximize efficiencies by
to many small, disparate parts. The platform’s end-to-end
coordinating their replenishment process with the logistics
capabilities have been conceived and built entirely by One
planning and execution process, thus optimizing service
Network to be network-based, using a single database,
levels, inventories and operational costs concurrently. As
a single UI, for a single one integrated and intelligent set
Gartner recently stated (May 2020), “One Network’s solutions
of network services. They are not a collection separately
cover processes across supply chain planning as well as
acquired, stitched-together systems. It is a completely unified
supply chain execution with a single transaction backbone
network solution that is unique in the industry.
and master data management system. Its ability to offer this
The Network Effect supply chain convergence is leading among providers.”
Any new company joining the One Network community has
Rapid Partner On-Boarding Services
immediate access to this established business network of
One Network uses a rapid onboarding and automatic quality
organizations already on the network. This is the “Network
assurance testing process, which enabled hundreds of
Effect”, which is particularly beneficial in the healthcare
suppliers, carriers, and freight forwarders to be onboarded
sector, because of the numerous parties involved, from
in weeks instead of months, along with a service model Multi-Party Collaboration Across 3PLs, 4PLs,
for onboarding new partners, as well as facilitating the Forwarders, Corporate and Suppliers
elimination of those no longer required. With Global Demand-Supply Matching and process
orchestration across business partners, One Network
Hub-to-Hub Optimized Execution – Concurrent enables you to identify supply chain exceptions in real time
and Across Tiers and resolve them optimally at the network level through
With continuous and incremental supply-demand matching multi-party collaborative workbenches with intelligent
in real time, your business can ensure that inbound supply algorithms and the latest in artificial intelligence and machine
is truly demand-driven and matches the needs of your end learning (AI/ML) technology for automated or prescriptive
customer at the other end of the value chain. While other decision-making. We call that global real-time visibility with
solution providers may claim this at a high level, One Network actionability.
enables this in real time at every level of granularity and time
horizon - even at the item level, enabling discrete ordering Embrace and Even Replace
with inventory min-max controls, delivering product just-in- With 110 pharma companies merging to 30 in the last three
time for your production sequence, including daily and intra- decades, the high rate of mergers and acquisitions has led
day if needed. to a proliferation of technology platforms. These need to
interoperate for maximum efficiency, effective decision-
Truly Integrated Inventory, Logistics and making, and optimization, and some need to rationalized
Order Management
or eliminated. The NEO Platform connects to virtually any
With One Network, system lead-times approach zero. With
system, and incorporates existing systems of record into the
a real-time view into inbounds, inventories, and shifting
network. It’s unique “tunable system of control” enables any
demands you’ll find information lags are minimized or
process (or step in a process) to be delegated to an external
eliminated, enabling you to increase service levels even as
system, such as ERP, while the platform synchronizes all
you dramatically reduce inventories. You’ll eliminate excess
data to maintain a single version of truth, and orchestrates
inventory buffers and the costs that go along with them,
the end-to-end process. This enables a clear path to digital
as well as the problems of having too much of the wrong
transformation, and a way to rationalize platforms – even as
product at the wrong location. This minimizes waste and
you improve supply chain performance.
product obsolescence.
A DevNet-Enabled Modular Architecture
With One Network, shipment visibility goes much deeper Enables Extensibility
and includes visibility into every order that makes up the Let’s face it – no solution will fully match your needs out-of-
shipment. And the inventory that makes up the shipment the-box. That’s where the One Network platform is designed
(even in the container) can be used for dynamic decision- to be highly extensible and enables swap-ability of core
making in real time and is available for dynamic reallocation modules. This enables you to assemble a solution from
to orders – just like any other inventory quantity in your existing modules, customize and extend them if needed, so
warehouses, plants, or retail locations. This explains why that it fits your requirements as if built to purpose, yet is fully
One Network helps optimize business performance with supported during its lifecycle with One Network’s “never
automation and prescriptive analytics in ways that others legacy” approach. It also helps provide rapid deployments
can’t - to drive extraordinary value. implemented through a “value first” agile methodology for
a self-funding strategy where value is realized each step of
the way. You get high value return quickly, with minimal
disruption to operations and virtually no risk.
INTELLIGENT CONTROL TOWERS FOR lowest landed cost. This network-level view delivers superior
PHARMACEUTICALS AND MEDICAL DEVICES value compared to optimizing one-enterprise-at-a-time,
because this approach considers the complex cost and service
What is the One Network Control Tower? One Network’s
level tradeoffs for situations with hundreds or thousands of
Control Tower runs on the NEO Platform and is a complete
orders for businesses with potentially tens of thousands of
supply chain management system embodying real-time
SKUs.
visibility, decision making, and execution capabilities across
the end-to-end supply chain. It enables views and actions on
This is why an effective Control Tower needs to be a network
orders and shipments down to individual items, and enables
application spanning the end-to-end supply chain, that
collaboration across all participants, including raw material,
includes all trading partners from the source of supply to the
ingredient, API and parts suppliers, contract manufacturing
point of consumption.
organizations, packers, logistics and wholesalers and
distributors, and healthcare providers.
As explained in Chainlink Research’s report, Understanding
Supply Chain Network Technology: “The new Networked
The Control Tower runs on real-time data in a single shared
Enterprise Model of the 21st century requires implementing
database, and can be implemented and used by all trading
a supply chain trading partner operating model that supports
partners in the supply chain. Providing much more than basic
the networked enterprise, providing interoperability and
visibility, it provides predictive and prescriptive analytics for
visibility with reduced complexity. The supply chain trading
advanced problem solving and optimization at the network
partner operating model is a codification and automation
level. One Network’s Control Tower includes extensive
of the key processes, policies, performance metrics
machine learning capabilities that predict potential problems
and technology that govern your supply chain partner
and help users resolve them. The system also automates
relationships.”
routine tasks, empowering users to be far more productive,
and enables them to focus on the highest value decision
A real-time, multiparty network realizes this networked
making.
model. It enables a Control Tower with deep functionality
across your full network of trading partners. It provides both
With a network-based control tower, optimization and
visibility and actionability. You can both plan and execute
decision-making take into account capacities and constraints
across all functions, trading partners, and time horizons.
across the network to ensure the highest service levels at the
2. Performance Measurement, Predictive Analytics any exceptions and root causes. The network-supported
and Alerts reporting mechanisms provide unmatched opportunities to
End-to-end visibility is further supported by a robust improve cost and service within the organization and across
permissions and dashboarding configuration that allows all the network.
participants to view and analyze only the data relevant to
their organization and user role. Intelligent Supply Chain Management
Intelligent NEO agents are built into the NEO Platform and
• Operational dashboards are configurable at the user run on top of the execution data, combining other streaming
level and include all the tasks and alerts relevant to each data sources (such as cold chain temperature data) that
specific role. Using these operational dashboards, users compare the plan in real-time and predict ETAs and other
can drill into each task and alert to quickly resolve any events. Exceptions are managed though a case management
issues. capability that drives root-cause analytics and derives
• Command and control monitoring provides a intelligent performance and predicted service insights.
management overview of the health of the network
configurable to their unique perspective. 3. Decision Support, Recommendations, Case
• Operational data views provide real-time visibility of Management and Prescriptive Workflows
transactions where users can build customized reports, The system continuously compares planned activities to
leverage reporting templates and create data cubes or actuals, determines the likely impact, alerts relevant parties
pivot tables. of deviations, and recommends solutions so that exceptions
• Enterprise slicing allows users to easily import data into can be managed quickly and optimally.
other operational or reporting tools.
A network-enabled Control Tower goes beyond what
Advanced Reporting traditional supply chain and TMS solutions can accomplish by
One Network provides a suite of pre-built reporting templates allowing network participants to collaborate on time-sensitive
to support standard performance analysis on customers, issues in real time. With a full suite of case management
lanes, carriers and vendors (on-time and in-full) as well as capabilities, all partners can manage exceptions that occur
during the execution process and optimize responses.
With real-time end-to-end visibility and actionability • Re-plan container to swap different order with delayed
across demand channels, supply sources, and all modes order. Requires order and corresponding inventory
of transportation, the system can determine the likely prioritization and the transit lead times to effectively
impact, alert relevant parties of deviations, and provide guide User to select right set of orders.
recommended solutions, so that exceptions can be managed • Need rapid collaboration among LLP, Corporate Buyer,
quickly and effectively. and Suppliers.
These features also include: Execution Delays - In-transit delays, customs hold, or
carrier not found for first or last legs. NEO Recommended
• An issue state machine to monitor open, in progress, Resolutions:
cancelled, resolved and closed issues
• Root cause analytics with reason and resolution codes • Alternate sourcing from nearby DC to serve the
• User collaboration allows users to assign ownership immediate demand. Requires access to inventory
and chat in real-time, with chat history recorded within visibility at those DCs and warehouse capacity to perform
transactions for auditing purposes the operations.
• Audit and reporting to summarize issue history within • Adjust the outbound orders from import DCs with
transactional context updated ETA for inbound supply to avoid the projected
stock outs. Requires outbound demand view at import
Prescriptive Analytics and Guided Resolutions DC.
Prescriptive workflows go even further to seamlessly • Need rapid collaboration among Last Leg Carriers,
incorporate all facilities, such as plants, warehouses, yard and Warehouse Manager, Transportation Team/3PL,
dock scheduling operations, into the end-to-end workflow. Wholesaler and Corporate Buyer.
Processes that are frequently managed across separate
systems or via manual communication between Shipper, 3PL Demand Shift and Demand Changes - Downstream demand
and Carrier, can now be streamlined across all parties where changes cause potential loss in sales. NEO Recommended
specific roles, activities and performance metrics can be Resolutions:
established for optimized operations.
• Expedite the container operations at port with priority
Examples. Let’s look at what types of problems and solutions Items. Requires container visibility along with inventory
are possible with prescriptive analytics on the NEO platform: information carried to perform the operations.
• Perform Last Minute Allocation from import DC to
Supply Not On-Time - An order planned for a container is reallocate supply to nodes having the demand.
delayed. NEO Recommended Resolutions: • Need rapid collaboration among Corporate DC,
• Reschedule container to next possible vessel schedule. Warehouse, Buyers and Transportation Team/3PL.
Requires Projected Inventory View at Import DC to
identify the impacts of delaying the container.
4. Autonomous Network Control staff can gradually cede autonomy to intelligent agents where
Intelligent autonomous agents propose solutions, identify it makes sense, and then only within certain products and
the best option, and execute it. parameters. As the system learns, improves and proves itself,
it can be given more and more autonomy. Ultimately, the
At this level of Control Tower Maturity, many suggested intelligent agents embedded within the execution layer can
resolutions and user-managed actions can be gradually run the supply network with minimal human intervention.
converted to automated network actions. The Intelligent
Control Tower goes beyond detecting trends and automating Find Problems Faster, Solve Them with Better Solutions
issue resolution, and can propose optimal solutions at Control Towers on this multiparty network not only expose
the network level to improve operational efficiencies and many more problems sooner (while there’s still time to fix
maximize service levels. them), they also provide many more ways to solve a problem.
When the architecture treats all variables in the system as
A Control Tower on a real-time demand and supply network dependent and being driven by the desired outcome, then
surfaces many more problems than you’ve ever been able the Control Tower offers a wide range of solutions for each
to handle in the past. You can define limits and boundaries and every problem in the network.
for automated decision-making (decision “guardrails”) and
automate decision-making to resolve problems that are A multi-echelon supply network problem can be solved
within those “guardrails” as a normal course of business. in many different ways, for example, by adding shifts,
The autonomous NEO agents include advanced planning and expediting, allocations, postponement, etc. In fact, certain
optimization algorithms that can autonomously make and problems can have four or five different solutions involving
execute decisions within your guardrails. Agents can do things many different parts of the supply network, each having
like adjust and create orders, modify or change inventory a different business effect on the network outcome. The
policies, forecast transport capacity, perform transport AI engine can rank these choices based on setting various
optimization for dedicated and common carrier equipment, as business strategies for market share vs revenue vs margin
well as the advanced scheduling of DC appointments. generation vs customer service vs resiliency, etc.