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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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Today’s Presentation

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  1. © 2008 lharrington group / 1

  2. 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

  3. 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

  4. 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

  5. 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

  6. The 6 Software Studied • Country Commodities Manager (CCM) • Channel • Pipeline • Quantimed • RH Interchange • Supply Chain Manager (SCM) © 2008 lharrington group / 6

  7. The 6 Software Studied © 2008 lharrington group / 7

  8. RH Supply Chain Map • The RH Supply Chain Today • Mapping of flows: Information, funds, freight © 2008 lharrington group / 8

  9. RH Supply Chain Map © 2008 lharrington group / 9

  10. 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

  11. RH Supply Chain Map—Software Overlay © 2008 lharrington group / 11

  12. 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

  13. Road Testing Overview © 2008 lharrington group / 13

  14. 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

  15. 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

  16. 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

  17. 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

  18. 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

  19. 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

  20. 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

  21. 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

  22. 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

  23. 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

  24. 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

  25. 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

  26. 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

  27. Questions? © 2008 lharrington group / 27

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