Being more like Coca-Cola takes days out of GSK’s pharma supply chain
In what was a somewhat middling financial report to investors, there were some manufacturing and supply chain nuggets from GlaxoSmithKline ($GSK) CFO Simon Dingemans this week.
Fairly deep into the conference call, Dingemans said lessons learned from being more of a FMCG company on the consumer side were being applied to pharma to take time and costs out of the supply chain.
In the last 6 months, Dingemans said GSK has been «simplifying the manufacturing footprint» to align that footprint more tightly to the three main businesses: Vaccines, Pharma and Consumer. Creating a single
Using the techniques in pharma, the company is now asking where it wants to put a plant and where is the capacity, he said.
«So Aranda, our big respiratory plant in Spain, had some space in one of their plants that was otherwise sitting there in a mothballed way. We are now going to put the production of Panadol into that plant," Dingemans said.
Efforts in manufacturing and improvements in IT systems are helping take time and costs out of the supply chain. That has particularly played out in Pharma, he said, in which about 10 days were taken out of the supply chain process, an improvement expected to contribute?350 million in the first six months of the year.
The company missed forecasts for
A simpler manufacturing platform allows for simplified logistics, for instance, «which are hundreds of millions of pounds [of costs] in terms of how we think about distributing our product around the world," he said. «If you align the plant more closely with where you’re actually selling it, you can reduce those [costs] significantly.»