EyeOn report: Changes in the Life Science Demand Planning function
The life science industry has seen a long period of change in roughly the past decade. Right in between the 2012 and 2015 patent cliffs, the hopes are on new (biotechnology) products to offset the sales at risk from generic competition. Price pressure and decreasing R&D productivity have led to mergers and acquisitions as the initial response to maintain profitability and competitiveness, a popular response we still see today.
It will be no surprise that supply chain management becomes much more difficult as these developments unfold. In fact, we believe supply chain management will become a key success factor in maintaining healthy profit margins in the industry. The trends we see now all lead to increased uncertainty about the future demand for products. So within supply chain management, demand planning is already a vital business function.
This paper investigates how macro trends, industry trends and common industry strategies impact the demand planning function, and offers insights into how these can be effectively dealt with.
This EyeOn report is the first in an EyeOn series on planning and forecasting in the life science industry.