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Shop Floor Visibility & Traceability Across Higher Fleet Efficiency via
Analytics Supply Chain Remote Fleet Management
Figure 1
Figure 2
Using sensor information to remotely monitor allocation, which can lower manufacturing costs
equipment allows technicians to develop and shorten cycle times.
self-learning predictive models and perform
diagnostic services across the company’s The true value of connected manufacturing varies
equipment portfolio – increasing availability and among companies, since many are at different
reliability and ensuring minimal disruptions in stages of automating manufacturing. (For more
the supply chain. (See Figure 3 below). on this topic, read “How Digital Makes Connected
Manufacturing Possible.”) The IoT provides a
The ability to gather real-time information about non-linear opportunity to scale by focusing on
equipment availability, calibration and utiliza- specific business outcomes.
tion can help manufacturing teams make better
decisions, optimize equipment performance, The biggest challenge is connecting industrial
reduce machine downtime and improve resource equipment to sensors or devices to access back-end
H ELP DESK
Figure 3
Figure 4
Figure 5
Track Shipments Across the Pharma Supply Chain Tracking the movement of drug
Pharmaceuticals packaging is critical to ensuring inventory at every point can potentially
products quality. Companies must follow strict
save supply chain participants billions
guidelines for determining the way a drug
is transported, administered, and consumed. of dollars.
Smart pharma packaging can help ensure that dispensing. The result is a complete digital
shipments and medications are accurately footprint. Electronic circuits/chips in packaging
tracked, and that the supply chain remains fluid, material and the use of Auto-ID with Automatic
efficient and cost-effective. Information Data Collection (AIDC) for smart
serialization can help control how substances
When applied to packaging, the Internet of enter healthcare environments and ensure that
Things affords several advantages, including bi- suitable conditions are maintained in cold chains
directional communication, tracking, and status- during the transport of temperature-sensitive
display mechanisms. This is especially relevant in
drugs. (See Figure 6, see next page).
markets where counterfeit drugs regularly enter
the value chain. Tracking the movement of drug Control Cold Chain Conditions
inventory at every point can potentially save Pharmaceuticals manufacturers increasingly
supply chain participants billions of dollars. deal with products such as biologics, which are
highly sensitive to storage conditions. These are
2-D bar codes, RFID tags and smart packaging
high-ticket drugs. Last year alone, eight of the
labels make it possible to track each handshake
top ten drugs (measured by highest sales) were
in the supply chain, from manufacturing to
biologics.4 Moreover, the projected growth of
Optimize • Increase • 2-D Bar codes, RFID tags and smart • A highly efficient
Inventory Costs visibility labels used in packaging. supply chain.
Among Supply into product • Transmitters at warehouses capture • Assurance that
Chain Partners. movement consignment movement and report to product inventory
and central location. aligns with demand.
inventory in • Inventory and supply chain decisions • Increased
supply chain leverage real-time information on collaboration
hubs. product movement to ensure optimal among supply chain
stock levels. partners; agile, cost-
effective, optimized
supply chains.
Figure 6
cold-chain biopharma products will be twice that ments. Many must be maintained at tempera-
of the industry overall – expected to reach more tures lower than 77 degrees Fahrenheit; some
than $361 billion worldwide in 2019. 5 require 35 to 46 degree Fahrenheit during cold
chain transportation. Quite a few must be stored
These products often have a larger proportion at controlled room temperature. These drugs are
of high-value active ingredients with shorter safe at ambient temperatures, but must be kept
shelf lives, and carry strict temperature require- in temperature-controlled containers during
Figure 7
Figure 8
transport, like reefers, to avoid the spikes that tracking and data collection. This assumes
can occur in ambient containers. that by taking a similar approach to ensuring
shipment visibility throughout the supply chain,
Yet pharma companies continue to lose millions pharma manufacturers can initiate real-time
due to spoilage from temperature fluctuations, tracking of cargo conditions and vehicle perfor-
and face an even greater threat if the deteriora- mance, and avoid losses and penalties from late
tion goes unnoticed – leading to potential health deliveries and spoilage.
hazards for patients and subsequent regulatory
actions. This issue is increasingly critical in the Digital technologies such as GPS
emerging Asian and South American markets,
where wide temperature fluctuations are more
location and condition monitoring
the rule than the exception. afford real-time visibility and security
The existing cold chain logistics and storage
during transport.
market handles approximately $260 billion Generics make up 80 percent of today’s pharma
6
worth of products; it is estimated that 20% market and competition is fierce. This under-
of these goods are wasted during shipping and scores the importance of developing transport
transportation. IoT-based solutions can help and logistics capabilities that heighten efficien-
pharma manufacturers remotely monitor cold cies and drive down costs.
chain environments in real time by embedding
sensors on tracking equipment with auto-start Digital technologies such as GPS location and
and shut-down mechanisms in warehouses, condition monitoring afford real-time visibility
vehicles, or shipments using smartphones and and security during transport. Figure 9 on page 8
tablets. (See Figures 7, previous page, and Figure illustrates how pharma manufacturers can unify
8, above). the view of vehicles, drivers, and performance
across locations by collecting data from vehicle
Remote Fleet Management telematics. This information can be captured via
According to the 2013 Global Cargo Theft Threat Global Positioning Systems (GPS), then relayed
7
Assessment from the FreightWatch Interna- to control rooms through GPRS (General Packet
tional Supply Chain Intelligence Center, the Radio Service) – allowing complete visibility into
pharmaceuticals industry has experienced some product and transport conditions, and enabling
of the highest average loss values due to cargo control-room personnel to analyze and compare
theft. The same report states that the average data on fleet performance from virtually
load loss for the pharma sector in the U.S. has anywhere. This can reduce time to market,
dropped dramatically – from $3.78 million in prevent product damage and waste, and lower
2010 to $168,219 in 2012 – due to the industry’s carrying costs.
adoption of sophisticated methods for freight
Figure 9
Figure 10
• Perform pilots; establish business benefits Enterprises must constantly innovate and utilize
through a proof-of-concept (PoC). emerging technologies to remain relevant, com-
petitive, and profitable.
• Employ agile methodologies for proof-of-
concept implementations to realize tangible For pharmaceuticals companies, the Internet of
benefits from greater user interactions, with Things extends visibility in virtually every area of
the flexibility to customize solutions in a the business – from development, to manufactur-
structured way. ing, transport, distribution, dispensing and con-
• Augment your team with a suitable partner sumption. Real-time information, when coupled
that offers a dedicated infrastructure and with advanced analytics engines, can become the
facilities, plus expert industry and technology basis for making faster, more accurate decisions;
teams focused on integrating various skill sets heightening efficiencies, verifying product quality,
to effect digital transformation across the and assuring regulatory compliance.
implementation lifecycle.
As the IoT becomes mainstream, it presents an
Looking Ahead opportunity to digitize business processes and
In virtually every industry, advances in digital enable collaboration and monitoring beyond what
technologies are redefining how enterprises was possible before now. The risk of doing nothing
conduct business – internally, with external stake- must be evaluated against changing customer and
holders, and in the marketplace. The ubiquity regulatory expectations and market dynamics.
of mobile computing, the dominance of social The time is right for pharmaceuticals companies
media, and a growing portfolio of smart products to accelerate their implementation and utilization
and capabilities provide real-time, actionable of IoT platforms and solutions.
intelligence at a pace that continues to increase.
Amit Chourey is a Consultant within Cognizant Business Consulting. He has more than eight years of
experience in management consulting, business process analysis, IT strategy roadmap, COTS evaluation,
portfolio analysis and business development. He also has experience in pharma R&D and supply chain
management. Amit holds an MBA from Faculty of Management Studies school of business, New Delhi,
and a bachelor’s in mechanical engineering from DAVV University. He can be reached at Amit.Chourey@
cognizant.com | LinkedIn: https://uk.linkedin.com/in/amitchourey.
Mugdha Suranglikar is a Consultant within Cognizant Business Consulting. She has more than six
years of experience working in the life sciences and manufacturing and logistics domain in the area of
consulting and business development. She specializes in material requirements planning and artwork
and packaging, supply chain management and reporting within the life sciences industry. She is a
certified Six Sigma green belt. She holds a bachelor’s degree in chemical technology and an M.B.A. from
Xavier Institute of Management, Bhubaneswar. She can be reached at MugdhaMukund.Suranglikar@
cognizant.com | LinkedIn: https://uk.linkedin.com/in/mugdha-suranglikar.
Acknowledgments
The authors would like to thank and acknowledge the support and guidance of the following Cognizant
leaders in helping shape this point of view: Pari Sanghavi, Global Practice Head, Supply Chain and manu-
facturing; Michael Zirkle, Associate Vice President, Supply Chain, Cognizant Business Consulting, Life
Sciences and Healthcare Practice; Bharath Balakrishanan, Senior Manager, Business Development,
Cognizant EBA Ventures, IoT; and Alan Alper, Assistant Vice President, Corporate Marketing.
About Cognizant
Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business
process services, dedicated to helping the world’s leading companies build stronger businesses. Head-
quartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technol-
ogy innovation, deep industry and business process expertise, and a global, collaborative workforce that
embodies the future of work. With over 100 development and delivery centers worldwide and approxi-
mately 255,800 employees as of September 30, 2016, Cognizant is a member of the NASDAQ-100, the
S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and
fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant.
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