Clinica Reports - Strategies in E-supply Chain Management

Strategies in E-supply Chain Management

Strategic Management

This highly topical report provides the latest developments in e-business and gives practical advice on how you can integrate electronic supply chain management (e-SCM) into your business strategy.

To provide the practical help, Strategies in E-supply Chain Management provides five case studies and an expert presentation from the Head of Healthcare Consulting Central Europe, IBM.

Companies from all areas of the supply chain present invaluable advice, including NHS Purchasing & Supply Agency and Medexonline.

This report will enable you to:

Understand how e-SCM can add value and reduce costs in your supply chain
Learn what new developments are happening in the marketplace
Assess the practical issues involved in implementing e-SCM
Establish how the supply chain model is changing

CONTENTS

Executive Summary

Chapter 1 Introduction
Traditional supply chain management
Technology
Electronic supply chain management
The issues
The medical device and diagnostics market
Conclusion

Chapter 2 Strategic aspects of supply chain management and implementation
The scope of the industry
Collaboration in the supply chain
The theoretical view versus what happens in reality
The operational benefits of e-SCM
How to add value to the supply chain
Case study - a practical example
A case study - the distributor
Ten clear messages

Chapter 3 The way forward
Ewan Drummond, Medexonline
Derek McCall, Ventro Life Sciences
Richard Chantler, NHS Purchasing & Supply Agency
Paul Kidd, Exel
Stefan Muennighoff, GloMediX
Future consolidation
Conclusions

Chapter 4 Security and regulations
The electronic environment
Developing a security strategy
Technologies
Legislation

Chapter 5 The next 10 years

Published: July 2000
Pages: 67
Ref: CBS848E
Price: £350/$735/¥84,000

TABLE OF CONTENTS

EXECUTIVE SUMMARY
ACKNOWLEDGEMENTS
ABBREVIATIONS

CHAPTER 1 INTRODUCTION
1.1 Traditional supply chain management
1.2 Technology
1.2.1 The internet
1.2.2 Broadband and wireless application protocol
1.2.3 Unified messaging
1.2.4 An e-strategy
1.3 Electronic supply chain management
1.3.1 Integration
1.3.2 Costs
1.3.3 Labour
1.3.4 Information
1.3.5 Customer service
1.4 The issues
1.4.1 Culture
1.4.2 People
1.4.3 Competitors
1.4.4 Security
1.4.5 Pace
1.4.6 Global reach
1.5 The medical device and diagnostics market
1.5.1 A comparison with other industries
1.5.2 Systems issues
1.5.3 The problem of distribution
1.5.4 The e-marketplace
1.6 Conclusion

CHAPTER 2 STRATEGIC ASPECTS OF SUPPLY CHAIN MANAGEMENT AND IMPLEMENTATION
2.1 The scope of the industry
2.2 Collaboration in the supply chain
2.3 The theoretical view versus what happens in reality
2.3.1 Case study - Ethicon/IBM
2.3.1.1 Automating the supply chain
2.3.1.2 Getting wireless
2.3.1.3 The automated, wireless supply chain
2.3.2 Case study - Eastman Chemical Company/webMethods
2.3.3 Case study - Chemconnect/webMethods
2.4 The operational benefits of e-SCM
2.5 How to add value to the supply chain
2.6 An expert presentation on implementing e-SCM
2.6.1 A definition of the supply chain
2.6.2 What are the drivers for change in the supply chain?
2.6.3 How can technology add value?
2.6.4 How does a company go about automating the supply chain?
2.6.5 Is there a difference in terms of what small and large manufacturers are trying to do?
2.6.6 The vulnerability of medium-sized companies
2.6.7 Defining areas of greatest gain
2.6.8 Sourcing
2.6.9 E-procurement
2.6.10 Short term versus long term
2.6.11 The IT processes
2.6.12 Systems
2.6.13 What impact does new technology have on the organisational structure?
2.6.14 Measuring success
2.6.15 Can you cite any European companies that are advanced in their supply chain strategy?
2.6.16 What does the optimum supply chain look like?
2.6.17 Is there a place for wireless application protocol in the supply chain?
2.7 Case study - a practical example
2.7.1 The reason for change
2.7.2 The issues behind developing an e-business plan
2.7.2.1 In commerce
2.7.2.2 In R&D
2.7.2.3 In logistics/manufacturing
2.7.3 Short term versus long term
2.7.4 Customers
2.7.5 The business plan
2.7.6 Cost justification
2.7.7 The right hardware/software platform
2.7.8 Cultural changes
2.7.9 The major costs in the supply chain
2.7.10 Bottlenecks in the supply chain
2.7.11 Adding value to the supplier
2.7.12 Adding value to the customer
2.7.13 The impact of e-SCM on each area of the business process
2.7.14 The rise of e-markets
2.8 A case study - the distributor
2.8.1 The company
2.8.2 The early days
2.8.3 The trends
2.8.4 The other side of the argument
2.8.5 Creating a vision
2.8.6 Skills
2.8.7 Learning from other industries
2.8.8 Some guidelines
2.8.9 Building relationships with suppliers
2.8.10 Conclusion
2.9 Ten clear messages

CHAPTER 3 THE WAY FORWARD
3.1 Ewan Drummond, Medexonline
3.1.1 Supply chain issues
3.1.2 Clinical demand
3.1.3 Adding value and removing cost
3.1.4 Understanding the flow
3.1.5 Understanding demand
3.1.6 Understanding how to co-operate
3.1.7 Technology
3.1.8 The human factor
3.1.9 How information might change the business relationship
3.1.10 European Public Procurement Regulations
3.1.11 Point solutions
3.1.12 The main issue in managing globalisation
3.1.13 Alliances
3.1.14 The pace of change
3.2 Derek McCall, Ventro Life Sciences
3.2.1 The origins of Ventro Life Sciences
3.2.2 The move into a multi-vertical strategy
3.2.3 The launch
3.2.4 The business model
3.2.5 The distributor
3.2.6 The marketplace
3.2.7 Searching for products
3.2.8 The changing role of purchasing staff
3.2.9 The difficulty of building the marketplace
3.2.10 Levelling the playing field
3.2.11 The cost of the marketplace to the supplier
3.2.12 The value to the supplier
3.2.13 Who is on the database?
3.2.14 Proof of concept
3.2.15 The four essential elements
3.2.16 The definitive supply chain
3.3 Richard Chantler, NHS Purchasing & Supply Agency
3.3.1 The current procurement situation
3.3.2 The immediate requirements
3.3.3 Control
3.3.4 Rationalisation
3.4 Paul Kidd, Exel
3.4.1 The application of Best Practice
3.4.2 Transferring practices across industry
3.4.3 The situation in the UK
3.4.4 The Support Centre solution
3.4.5 The first implementation
3.4.6 Moving to the European healthcare sector
3.5 Stefan Muennighoff, GloMediX
3.5.1 The company
3.5.2 Assisting the sales effort
3.5.3 Generating leads
3.5.4 A closed community
3.5.5 Pricing
3.5.6 Offering from the US
3.5.7 Value for hospitals
3.5.8 Distribution
3.5.9 Neutrality
3.5.10 The pharmaceutical market
3.5.11 The costs
3.5.12 The lone supplier versus partnerships
3.5.13 The competition
3.5.14 INTERSHOP
3.5.15 Forecast
3.6 Future consolidation
3.7 Conclusions

CHAPTER 4 SECURITY AND REGULATIONS
4.1 The electronic environment
4.1.1 The risks
4.2 Developing a security strategy
4.2.1 The risk analysis - needs
4.2.2 Risk assessment and baseline security
4.2.3 Designing the strategy - opportunities
4.2.4 Best practice and constraints
4.2.5 Processes
4.2.6 Maintaining a security policy
4.2.7 Your trading partners' systems
4.2.8 How strong should the authentication be?
4.2.9 Sabotage
4.3 Technologies
4.3.1 Virtual authentication
4.3.2 Guaranteeing integrity
4.3.3 Public Key Infrastructure
4.3.4 The need for a Trusted Third Party
4.3.5 Safeguarding the legality of an e-contract
4.3.6 An international security standard
4.4 Legislation
4.4.1 When the contract is made
4.4.2 The Digital Signatures Directive
4.4.3 The E-Commerce Directive
4.4.4 Data protection
4.4.5 The UK
4.4.6 The degree of risk

CHAPTER 5 THE NEXT 10 YEARS
REFERENCES

Executive summary

The internet has provided untold opportunities in terms of communications and immediacy, and is changing the traditional supply chain model in the medical device and diagnostics (MD&D) industry. However, it also poses a great number of questions for established businesses and entrepreneurs. For example:

Is it really necessary to go online at all?
Whose technology is best?
What if other members of the supply chain are not online?
How can I secure the transaction?
What are the legal and regulatory implications in terms of international business?
Should I join an alliance/e-market?
Do my supply chain management (SCM) staff have the necessary skills?
How can I optimise the business infrastructure?
What are the implications for the way we work?
How can I develop a sharing culture?

The introduction to this report (Chapter 1) discusses the traditional concept of SCM, with its emphasis on 'box shifting' and the development of electronic data interchange, the internet and electronic supply chain management (e-SCM). It argues that every business should join the internet world or lose out to its competitors. It also introduces some of the issues facing the transition to e-SCM within the MD&D industry, in particular the cultural and organisational change processes that industry needs to embrace in order to streamline business processes and realise its full potential.

Chapter 2 takes an in-depth look at some of the strategic issues surrounding the adoption of an internet supply chain, and provides some examples of e-implementations. Dr Rolf Porsche, Head of Healthcare Consulting Central Europe, IBM, provides advice to companies wishing to embrace e-commerce, while David Laskow-Pooley, Vice President, Radiotherapy, Nycomed Amersham, gives a practical presentation of how it has worked in his company. Barabara van Bakel, Senior Business Development Manager at Maxxim Medical Europe, examines the evolving role of the distributor, and some strategies for survival. The chapter also discusses the benefits e-SCM can bring to the service proposition, and identifies key issues in converting to an e-supply strategy.

Chapter 3 looks at companies which have advanced e-SCM strategies in place. Presentations from Ewan Drummond, Director of Healthcare Services, Medexonline, Derek McCall, Vice President of Ventro Life Sciences, Richard Chantler, Director of Finance & Information, NHS Purchasing & Supply Agency, Paul Kidd, General Manager of Exel and Stefan Muennighoff, co-founder of GloMediX, offer their views on how the market is shaping up and what we can expect to see in the future. Presentations cover the emergent e-marketplace phenomenon and discuss the benefits it can bring to both supplier and customer. The chapter raises questions about the vision needed to implement e-commerce at supplier level. Should there be a modular implementation, or does that simply mean institutionalising old practices in 'point solutions'? Ewan Drummond's view is certainly that we need to fundamentally re-examine the traditional bricks and mortar model.

Wherever there is talk of e-commerce, the issue of security is raised. In Chapter 4, Robert Coles, International Service Leader, Information Security Services, KPMG, presents his view of how a company should set about ensuring security, not only in its own systems, but across the systems of any partner who is part of the virtual organisation. It also introduces some new risks which have been born out of the e-commerce phenomenon. Roger Dean, Executive Director of the European Forum for Electronic Business explains clearly the concepts of public key infrastructure, digital signatures and certificates, and the role of the Certification Authorities and Trusted Third Parties. Finally, Peter Coles, Manager, Legal Risks, Information Risk Management at KPMG, explains some of the legislative issues and the initiatives that are underway to promote international e-commerce.

The report finishes with some thoughts about the future direction of the industry.