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Optimizing the Reproductive Health Supply Chain: Highlights of Software Study May 19, 2008 Presented by Lisa Harrington President lharrington group Easton, MD lisa@lharringtongroup.com 410.819.6700 410.725.6198 M. Today’s Presentation. INTRODUCTION

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Optimizing the Reproductive Health Supply Chain:Highlights of Software StudyMay 19, 2008Presented byLisa HarringtonPresidentlharrington groupEaston, MDlisa@lharringtongroup.com410.819.6700410.725.6198 M

© 2008 lharrington group / 2

today s presentation
Today’s Presentation
  • INTRODUCTION

Lisa Harrington, lharrington group / University of Maryland Supply Chain Management Center

Other Research Team Members: Dr. Sandor Boyson & Holly Zhang, Univ. of MD; Stacey Renner, lharrington group

  • PROJECT DESCRIPTION
    • Project overview
    • Project methodology:
      • RH Supply Chain Mapping Exercise & Developer Meeting
      • Functional mapping of 6 software applications – Classification Framework #1
      • Functional mapping of best of breed supply chain applications – Classification Framework #2
      • Road testing of 6 software applications
      • Benchmarking
      • Interviews: Users, Developers, Advisors
  • FINDINGS
  • RECOMMENDATIONS

© 2008 lharrington group / 3

rh supply chain needs challenges
RH Supply Chain Needs / Challenges
  • RH Supply Chain Needs / Challenges:
    • Need for better control - “chain of custody” enforcement to improve safety, ensure delivery & prevent counterfeits and theft
    • Need for better communications across widely dispersed, unevenly developed supply chain actors
    • Need for more visibility into levels of supply chain
      • Need for better delivery execution management and tracking
      • Need for better / more accurate forecasting capabilities to prevent over- & out-of-stocks
      • Need for better in-warehouse product control & tracking – lot control/expiration date management, inventory tracking (deductions/additions)

© 2008 lharrington group / 4

purpose of study
Purpose of Study
  • Address confusion: Which software tool to use for what purposes / functions?
  • Need for overall assessment of software capabilities, strengths, weaknesses, future migration path

© 2008 lharrington group / 5

the 6 software studied
The 6 Software Studied
  • Country Commodities Manager (CCM)
  • Channel
  • Pipeline
  • Quantimed
  • RH Interchange
  • Supply Chain Manager (SCM)

© 2008 lharrington group / 6

the 6 software studied7
The 6 Software Studied

© 2008 lharrington group / 7

rh supply chain map
RH Supply Chain Map
  • The RH Supply Chain Today
    • Mapping of flows: Information, funds, freight

© 2008 lharrington group / 8

rh supply chain map9
RH Supply Chain Map

© 2008 lharrington group / 9

rh supply chain map software overlay
RH Supply Chain Map—Software Overlay
  • Where do the 6 software “play” on the RH Supply Chain map?
    • Developers’ meeting input – mapping exercise

© 2008 lharrington group / 10

rh supply chain map software overlay11
RH Supply Chain Map—Software Overlay

© 2008 lharrington group / 11

the 6 software road testing
The 6 Software: Road Testing
  • Overview of RH Supply Chain Product Functionalities
    • Install @ UMD Supply Chain Lab
    • Functionality run-through - 6 RH supply chain applications
    • Documentation review
    • High Level: Identified 4 core functional buckets / process groupings:
      • Incoming Commodity Visibility
      • Commodity Estimation Demand
      • Execution of Commodity Orders
      • Delivery / Distribution to Field

© 2008 lharrington group / 12

slide13

Road Testing Overview

© 2008 lharrington group / 13

benchmarking
Benchmarking
  • What is benchmarking & what did we benchmark against?
    • Manhattan Associates – Supply Chain Software
    • Pharmaceutical suite – Supply Chain Software
    • SAP/Oracle – Supply Chain Functionality within larger ERP applications

© 2008 lharrington group / 14

benchmarking manhattan associates
Benchmarking: Manhattan Associates

Integrated Logistics Solutions (ILS)/& Extended Enterprise Management (Trading Partner Management) Suite

  • Overall Description
    • ILS.NET - Commercial off-the-shelf (COTS) Supply Chain Execution Software designed to manage warehouse operations, inventory flows and supply chain visibility
    • Suite based on a relational database and common data model; modules exchange data seamlessly across the firm and with supply chain partners leveraging the Internet and Microsoft .Net Services
    • User experience -- Instant familiarity as ILS .NET has been designed to have a Microsoft Windows look and feel.

© 2008 lharrington group / 15

manhattan ils
Manhattan ILS

Software Modules address the following integrated processes across the Supply Chain:

  • Warehouse Management
    • Eliminates inefficient movement of goods, redundant effort and excess inventory
    • Improves inventory accuracy
    • Increases order fulfillment and accuracy
  • Slotting Optimization
    • Determines the best pick location for every product
    • Achieves peak productivity of picking and replenishment labor
    • Maintains strategic product groupings for improved customer service
  • Labor Management
    • Enables the tracking of all warehouse activities
    • Provides synchronized reporting of employee performance
    • Accurately measures and compares key performance indicators (KPIs)

© 2008 lharrington group / 16

manhattan ils17
Manhattan ILS

Software Modules address the following integrated processes across the Supply Chain:

  • Transportation Execution
  • Trading Partner Management
    • Provides real-time exchange of business information between trading partners
  • Performance Management
    • Transforms raw data into strategic, actionable information
    • Identifies and monitors business trends
  • RFID Solutions
    • Provides granular, accurate data tracking
    • Complies with industry Global Standards to ensure compatibility with trading partners
    • Ensures very high degree of accuracy

© 2008 lharrington group / 17

benchmarking findings
Benchmarking Findings
  • Manhattan software – Provides far more extensive supply chain functionality than any of individual 6 RH applications
  • Offers Web-based access
  • Relational database
  • Real-time information visibility across supply chain

© 2008 lharrington group / 18

functionality frameworks
Functionality Frameworks

Developed 2 Functionality Frameworks

  • Framework #1: The 6 Software Functionality Universe
    • Mapped & categorized all functions performed by each of the 6 RH applications in the study
    • Developed collective functionality list – the 6 software universe
  • Framework #2: Broader Supply Chain Applications Functionality Universe
      • Best of breed SCM applications
      • Supply chain modules of SAP, Oracle
      • Pharmaceutical industry-specific supply chain applications
    • Developed collective functionality list
  • Compare 2 framework results – show gaps

© 2008 lharrington group / 19

interviews
Interviews

User / Advisor Interviews

  • User / Advisor experience with the 6 software in the study

Developer Interviews

  • Developer perceptions about product purpose & performance
  • Developer plans for enhancements / updates & migration paths

© 2008 lharrington group / 20

user interviews highlights
User Interviews — Highlights

Supply chain challenges

  • Need for better control - “chain of custody” enforcement to improve safety, ensure delivery & prevent counterfeits and theft
  • Need for better communications across widely dispersed unevenly developed supply chain actors
  • Need for more visibility into tiered levels of supply chain
  • Need for better delivery execution management and tracking
  • Need for better/more accurate forecasting capabilities to prevent over- & out-of-stocks
  • Need for better in-warehouse product control + tracking – lot control/expiration date management, inventory tracking (deductions/additions)

© 2008 lharrington group / 21

user interviews highlights22
User Interviews — Highlights

Qualitative comments from Interviewees – Summary

What needs improvement?

  • Would like software applications to be integrated with one another & able to integrate with outside software
    • Move away from idea of “single-user access-based” programs – stand-alone inputs w/no visibility up or down
    • Would reduce data entry work load, errors, improve timeliness of data
    • Web portal with multiple applications bundled would be very useful – would allow data entry etc. from anywhere
  • Would like better visibility across supply chain tiers. Example: Forecasting difficult due to lack of visibility into on-hand, in-transit, inbound, outbound, orders etc.
  • More timely roll-up of data to national levels. Data too old so inaccurate.
  • Improve capabilities for reporting from facilities

© 2008 lharrington group / 22

user interviews highlights23
User Interviews — Highlights

Qualitative comments from Interviewees – Summary

What needs improvement?

  • Need to do better job of accommodating & integrating multi-tiered users – visibility, data entry etc.
  • Forecasting capabilities need improvement
  • Data Entry:
    • Too much manual data entry required
    • Data entry error alerting needs improvement. Needs to be proactive & “flag” errors and omissions as data being entered

© 2008 lharrington group / 23

study conclusions
Study Conclusions
  • RH Supply chain is complex – requires multi-tiered information and materials management in order to operate more successfully
  • Users say 6 software applications are:
    • Good in most areas at what they do, but their impact is limited because they are stand-alone / discrete
    • Lack of integrated data tools creates problems: Errors, excessive manual data entry, information “black holes”
    • These problems hamper efficiency & efficacy of RH supply chain
  • RH supply chain cannot improve as a whole until systems and data are integrated, shared, more real time, inter-relational, accurate

© 2008 lharrington group / 24

opportunities
Opportunities
  • Immediate & significant opportunity to bundle the 6 RH applications to reinforce strengths of individual packages
    • Impact:
      • Harness the power of the combined software feature sets
      • Cover more of the supply chain end-to-end in continuous, integrated data stream
      • Make the software applications easier to access for the user
      • Serve RH supply chain information needs in more integrated fashion
      • Reduce waste
      • Improve RH supply chain overall
      • Serve end customers (populations) more effectively

© 2008 lharrington group / 25

recommendations
Recommendations

Recommendations of Research Team:

  • Design an integrated single product CD / web portal-based software “bundle” for users with coordinated training & documentation
    • Navigation overlay
    • Interoperability / collaboration tools allow data sharing across 6 applications – relational database as foundation
  • As part of this bundling, investigate appropriate commercially available Pharma and / or General Supply Chain products & consider partnership possibilities to create / augment needed functionality specific to RH supply chain & build out what’s lacking in 6 Software
  • Objective: Create a toolset that covers more of the supply chain in an integrated, inter-connected fashion. Enable better visibility of more of the RH supply chain; Better management of the RH supply chain.

© 2008 lharrington group / 26

questions
Questions?

© 2008 lharrington group / 27