Pharma Companies' Evolving Expectations of Suppliers

By Patricia Van Arnum - DCAT Editorial Director

June 8, 2016

In what ways are pharmaceutical companies changing their expectations of suppliers? How can CDMOs, CMOs, and suppliers meet these evolving expectations? DCAT Sharp Sourcing, an upcoming conference on Tuesday, July 12, by the Drug, Chemical & Associated Technologies Association (DCAT), provides some answers..

Pharmaceutical companies and suppliers alike emphasize the value from having more strategic and collaborative relationships. But how does this interest translate to basic issues, such as payment terms and inventory management, so that it may be mutually beneficial to each party? Is this possible, and if so how? Addressing working capital requirements will be one topic addressed at the Suppliers' Forum at DCAT Sharp Sourcing.

The Suppliers' Forum, held in the morning at DCAT Sharp Sourcing, is specifically designed for contract development and manufacturing organizations (CDMOs), contract manufacturing organizations (CMOs), and supplier supporting pharmaceutical and biopharmaceutical production, from raw materials to drug substances to drug products. The Forum consists of five short presentations that will provide customer-centric perspectives to suppliers on best practices, practical insight, and innovative ways for: 

  • Addressing supplier consolidation;
  • Managing an integrated supply chain, including achieving greater cooperation/management across multiple suppliers;
  • Optimizing strategic partnerships and collaboration, including supplier innovation and supply risk management
  • Trends in moving cash flow to suppliers as it relates to payment terms, inventory management, and other items impacting working capital
  • Network integration.

Speakers, who will make presentations and participate in a panel discussion, include:

  • Robert P. Discordia, PhD, Executive Director, Global Procurement, Pharmaceutical Operations & Development, Bristol-Myers Squibb
  • David McCarthy, Senior Director, Pfizer Global Supply, Procurement, North America, Pfizer Inc.
  • Michele Johnson, Head, ESO Procurement Americas, Novartis Business Services
  • Carl Finamore, Director, PwC Advisory Services
  • David P. Geoghegan, Vice President, Manufacturing and Pharmaceutical Technology, Trevena, Inc.

Concurrent to the Suppliers' Forum will be the Buyers' Forum, which is specifically designed for sourcing, procurement, and supply management professionals. It will feature three topics with roundtable discussions: Procurement's influence in specification management; sustainable procurement; and supplier metrics: going beyond scorecards. Executives from Mallinckrodt Pharmaceuticals, Biogen, and Eli Lilly and Company will provide insight.

Following the Suppliers' and Buyers' Forums, buyers and suppliers come together for presentations of common interest for a joint afternoon program. J&J's Janssen (Pravin Khandare, PhD, Vice President, Janssen Supply Chain Procurement and Global API & Biologic Materials Category Leader, Janssen Supply Group, LLC) will kick off the joint afternoon session with a presentation on supply chain optimization and CMO integration that will provide insights on how to build collaborative external partnerships and optimize active pharmaceutical ingredient supply networks.

A panel of leading industry experts, including executives from Pfizer (David McCarthy, Senior Director, Pfizer Global Supply, Procurement, North America, Pfizer). and Teva (Lorraine McClain, Senior Director, Quality Risk Management, Teva Pharmaceuticals) and others will then discuss how pharmaceutical companies and suppliers can partner and achieve operational excellence and meet desired metrics, such as right-first time, in the manufacture of drug substances and drug products.

In the final presentation, Merck & Co. (Stephen J. Fecho, Jr., Director, Global Supply Chain Management, Merck & Co., Inc.)will discuss how to use value-based metrics to more effectively assess and mitigate supply risk in internal and external manufacturing networks.

DCAT Sharp Sourcing is developed by the DCAT's Supply Management Committee and the Education Committee's Sharp Sourcing Supplier Program Task Force.

Information on DCAT Sharp Sourcing 2016 including how to register, may be found here for the Suppliers' Forum and joint afternoon session. and here for the Buyers' Forum and joint afternoon session.