How to Solve Supply Chain Challenges with SAP IBP

Supply chain management in life sciences is critical, as the dynamic and volatile nature of the industry does not leave any room for error. Poor supply chain planning can make it difficult to meet expectations for patient safety, compliance, end-to-end transparency, and resilience. However, life sciences companies may also encounter complex challenges with supply chain management that inhibit the ability to meet these requirements and demands, hindering research and development (R&D) efforts and harming overall profits.  

These challenges, whether it’s standardizing strict regulations or adapting to demand volatility, can negatively impact supply chain agility if the technology in place is not equipped to handle these processes. It’s important for life sciences companies, especially those moving to commercialization, to build an operational foundation that can withstand these supply chain complexities; otherwise, it can have an adverse effect on the entire business. 

One way to combat these challenges is with SAP Integrated Business Planning (IBP). Integrating SAP IBP for life sciences provides the advanced technical framework needed to plan and optimize the supply chain for resilience and flexibility. With SAP IBP, life sciences companies can effectively mitigate risks, automate standardized processes, and streamline operations from R&D to market commercialization.  

Below, we explore how your organization can solve supply chain challenges with SAP IBP.

SOLVE SUPPLY CHAIN CHALLENGES WITH SAP IBP Supply 

Challenge #1: Meeting compliance and regulation standards 

There are many rules and regulations that life sciences companies must comply with, otherwise they could put their patients, profits, and company at risk. Today, it's standard protocol to comply with all government regulations, record data for traceability, monitor laboratory procedures, and control temperature of inventory, among several other operational requirements. It can be difficult to standardize compliance throughout the supply chain and building that framework manually is not always a priority, especially for pre-commercial companies.  

Solution: SAP IBP 

Automating compliance planning and data documentation with SAP IBP can be impactful to the company's success, especially when moving from pre-commercial to commercialization. With advanced analytical capabilities, SAP IBP automates quality control and record-keeping procedures, which improves traceability and end-to-end visibility throughout the supply chain. Integrating the various features of SAP IBP - such as demand forecasting, inventory optimization, and the supply chain control tower - helps build a consistent and scalable framework that facilitates the growth and success of the supply chain.  

Challenge #2: Monitoring Production and Inventory 

Compliance standards place unique inventory constraints on clinical supply chains. Different therapies require specific conditions, like a temperature-controlled environment, to guarantee safety and quality when delivered to the patient. Due to these restrictions, inventory facilities must constantly monitor their availability and ensure they can meet and maintain each unique requirement. Without a precise and flexible inventory plan, supply could expire and waste in storage, making it difficult to satisfy high demand expectations.   

Solution: SAP IBP For Inventory Optimization 

Inventory optimization tools within SAP IBP help plan and monitor inventory allocation, from raw materials to finished goods, to ensure quality control at all storage and distribution facilities. The data analysis technology allows planning executives to mitigate foreseeable risks and re-allocate inventory as needed, accounting for facility constraints and compliance requirements. SAP IBP helps life sciences companies optimize their inventory planning and management to better prepare for sudden changes or spikes in demand, encouraging a more resilient supply chain. 

Challenge #3: Demand Surges 

Life sciences companies arguably face the most uncertainty when it comes to demand. As we saw with the COVID-19 pandemic, outbreaks are rapid, unpredictable, and cause demand to exponentially increase on a whim. If ill-prepared to meet growing patient demands, businesses in this sector can quickly fall behind in production. It’s crucial for life sciences companies to quickly identify and proactively respond to changes in demand to protect their patients and their supply chain. 

Solution: SAP IBP For Demand Planning 

SAP IBP uses advanced analytics to streamline demand planning, making it easier for supply chain planners to recognize shifts in demand, determine the best-fit solution, and adapt the supply plan in response. With machine learning (ML) technology, SAP IBP’s accurate demand forecasting tools predict sudden changes in demand and recommend a solution based on available resources. Planning executives can also run what-if demand simulations, accounting for any supplier constraints, to consider how they need to adjust production and inventory in that situation. The advanced demand planning capabilities of SAP IBP help adapt and optimize the supply chain to handle any demand situation without overcommitting resources. 

Challenge #4: Transparency 

Supply chain disruptions occur across all industries but tend to have a more critical impact on clinical supply chains if not controlled. Situations like supplier disruptions, delivery delays, and weather disasters impact inventory levels, which can be damaging to the patients and the organization. It can be difficult to effectively manage inventory in response to disruptions without having full transparency over the entire supply chain.  

Solution: SAP IBP’s Supply Chain Control Tower 

The supply chain control tower within SAP IBP grants full visibility of the end-to-end supply chain process, from outsourced suppliers to internal inventory locations to external delivery points, which improves traceability and helps visualize supply allocation. The control tower uses intelligent visibility to alert for any disruptions throughout the supply chain network, allowing for a more robust risk management plan. The holistic framework provided by SAP IBP encourages consistency and allows full control of the clinical supply chain amidst disruptions. 

SAP IBP FOR LIFE SCIENCES  

There are a wide range of challenges associated with maintaining a clinical supply chain, which can be tricky to navigate without the proper resources and technology to do so.  

SAP IBP offers advanced features that can plan and optimize the supply chain to better handle risks and uncertainties. Life sciences companies realize the benefit of implementing SAP IBP as both a supply chain planning solution and a robust framework for data automation and regulation.  

If your business is looking to get started with SAP IBP or other SAP solutions, contact the industry experts at Crescense today. 

Contributions from Bella Gordon