AspenTech’s Pharmaceutical
Supply Chain Solution
Enabling: Collaboration, Predictability, Efficiency and Customer
Satisfaction in Pharmaceutical Manufacture & Supply
AspenTech is a major supplier of process industry solutions, and offers a
unique solution set for the pharmaceutical industry. This spans the end-to-end
value chain for 1’ (API) and 2’ (DP) operations, covering: development, supply
chain, and manufacturing. It delivers value through enabling: operational
excellence, cost reduction, compliance and better customer delivery
performance.
AspenTech’s Solutions for the Pharmaceutical Industry
Process Development
Supply Chain Planning
• Route Assessment
• Advanced Planning & Scheduling
• Recipe Development
– Supply Demand Match
– Sequence & Capacity Optimization
– Production & Lab/QC Scheduling
• Demand Planning
• Pilot & Industrial Scale-Up
• Environmental Impact Assessment
• Site Evaluation
• Regulatory Compliance
• Technology Transfer
• Process Optimization
– Statistical, Casual, Collaborative
– Product/Customer Segmentation Analysis
– Sales & Operations Planning
• Inventory Planning
– Safety Stock Optimization
– Cycle Stock Optimization
Manufacturing
• Resource Management
• Product Definition Management
• Production Dispatching and Execution
• Historical Data Management
• Process, Production, and QA Data Analysis
• Production Tracking and Performance
One of the corner stones of the overall solution is the Aspen Supply Chain family of solutions,
which is deployable across the entire pharmaceutical manufacturing network, and scales from
shop floor scheduling up to and including global supply chain management.
The Challenge
Managers of pharmaceutical supply chains today face huge challenges from:
• Product complexity, driven by ever more demanding market specific drug product and commercial
pack requirements
• Tighter supply constraints from shorter shelf lives and increasingly volatile market demand forecasts
• Long manufacturing intensive value chains, spanning separate facilities in 1’ and 2’ networks, running
processes that involve long cycle times and yield variable output
• Suppliers, affiliates and customers seeking to run their own operations in more agile, flexible and cost effective ways
• Competitive business drivers demanding better OT&IF (On time & In Full) customer service, leaner manufacture and,
ultimately, lower cost of goods (CoGs)
• Ongoing compliance with 21 CFR 11 requirements, as they relate to supply chain operations
The Solution
To meet these challenges, AspenTech has developed a comprehensive Supply Chain solution set, aimed at meeting
today’s pharmaceutical industry needs. This solution set ranges from detailed shop floor scheduling, and scales right up
to an integrated view of the entire global manufacturing and supply network. It is designed to deliver value by enabling
collaboration, predictability, and efficiency throughout the entire supply chain, and thereby delivering improvements in
customer supply and satisfaction whilst significantly contributing to CoGs reduction.
Uniquely, AspenTech is the only vendor today offering integrated pharmaceutical Supply Chain and Manufacturing
Execution Solutions (MES). By adopting these solutions, managers can link together their ERP, Supply Chain and MES
systems, and realize the huge value opportunities that arise from such synergies across the entire manufacturing &
supply function.
AspenTech’s Supply Chain Solution Overview
AspenTech Supply Chain Solution Components are Depicted in Green Boxes
Solution Components
• Collaborative Forecasting, Supplier Planning & Demand Manager:
– Functionality: Translates historic drug demand trends into future forecast, allows extensive supply modeling and
delivers better demand and planning accuracy by enabling active collaboration with key stakeholders across your
manufacturing & supply network and customer base. It also enables direct communication with your raw material
suppliers and contractors.
– Value Benefit: Accuracy enhancements of up to 30% have been achieved, driving dramatic customer supply
performance improvements, and decreasing order arrears, plant schedule changes, and need for high inventory
stock cover levels.
• Supply Chain Planning:
– Functionality: Provides a ‘macro’ view of the global pharmaceutical network enabling an optimal S&OP process:
what to make at which site and when. Further, it resolves supply chain constraints and provides the framework for
the holistic supply chain picture.
– Value Benefit: In concert with the other solution components, it enables the network to move toward leaner,
more agile operations, manifesting as CoGs reduction and customer supply performance improvement
• Inventory Management:
– Functionality: Provides both a ‘macro’ and a ‘micro’ view of the sites across the pharmaceutical manufacturing and
supply network. It enables effective management of drug safety stock levels based on statistical variability of supply,
thereby optimizing inventory levels, investment cost and supply performance.
– Value Benefit: Enables the supply chain to operate in a leaner way, ultimately manifesting benefit as cost reduction
and better customer supply performance and customer satisfaction.
• Production Planning:
– Functionality: A site level tool that optimizes drug production over a longer timeline (1 Yr+). It delivers an optimized
long term plan for the site, smoothing and debottlenecking capacity constraints. It is critical for supporting ATP
(Available to Promise) capability, and the site S&OP process.
– Value Benefit: Better site capacity utilization and optimal medium term smoothing translates into CoGs reduction and
customer supply improvements.
• Plant Scheduling (includes Finite Capacity Scheduling):
– Functionality: Delivers a detailed shop floor schedule, optimized over a shorter term (months), on a continuous basis.
It provides detailed ‘what if’ planning and rescheduling, and is critical for delivering CTP (Capable to Promise)
capability. It integrates with AspenTech’s full MES solution, enabling true works order dispatching to the shop floor.
– Value Benefit: Shop floor operations proceed along optimized schedule. Maximizes order fulfillment and customer
supply performance.
In addition to the above components, AspenTech offer other supply chain solution elements covering all aspects of Supply
Chain Distribution management. Additionally, Aspen Strategic Analyzer employs powerful state-of-the-art modeling and
decision support tools to enable senior pharmaceutical management to model their entire global network and understand
the operational and financial impacts across any given strategic ‘what if?’ scenario.
Integration
All components seamlessly integrate to provide an effective holistic solution that enables true supply chain management
at all levels of the pharmaceutical manufacturing network. Integration is achieved through the Integration Infrastructure
of AspenTech’s Operations Manager Solution. Even at the detailed Finite Capacity Scheduling level, this integration
enables planners at each site in the network to have visibility of current and planned activities, opening up true cross
network visibility right across the site planning level, and so enabling real product specific value chain management.
Also, via the same architecture, integration with other business systems, especially the client ERP system, is achieved.
Additionally and uniquely, the Supply Chain solution also integrates, via the same platform, with AspenTech’s
pharmaceutical MES solution, closing the loop on shop floor real time performance and dynamic rescheduling of
the plant.
Compliance
Compliance with 21 CFR 11 regulations is paramount for any solution deployment potentially affecting product integrity
and quality. AspenTech’s Supply Chain solutions are already used extensively with leading pharmaceutical companies, in
settings all around the world, and as such comply with all necessary and appropriate regulations.
Return On Investment
Typical Payback Period for Supply Chain Projects:
Average Payback Period
for Supply Chain Projects (Months)
Production Planning
Range
Demand Planning
1-year payback
Key
Supply Chain
Planning
= Industry Average
= AspenTech Average
0
10
30
20
40
50
Months
Source: Industry average payback periods from ARC Advisory Group “The SCM Implementation Guide Costs,
Benefits Best Practices”, AspenTech average payback periods based on past projects
AspenTech Supply Chain Solution ROIs Versus Industry Average
Why AspenTech
With over 20 years of process industry experience, AspenTech is at the forefront of development and deployment of
integrated and comprehensive solutions for pharmaceutical manufacture. Eighteen of the top twenty pharmaceutical
companies in the world today deploy AspenTech solutions across their operations.
Apart from offering a unique and comprehensive solution to meet today’s pharmaceutical manufacturing and supply
challenges, AspenTech compliments and supports its solutions with two additional and distinct elements:
• The Aspen Value Process (AVP) specifically for Supply Chain: ensuring that deployment focuses in on value
creation and realization. AVP is a highly developed and rigorous methodology that brings some 20 years of
experience to the analysis and solution determination of pharmaceutical industry supply problems, and the
sustained delivery of value benefit after solution deployment.
• Product Services Methodology that fully delivers a carefully managed project implementation covering:
scope/design (‘user requirement’ and ‘functional design’ specifications)/pilot testing/deployment/in-situ testing
& validation/client acceptance/client training/start-up. Comprehensive ongoing technical support for users of
AspenTech solutions is available, as is input and access into future product developments and releases.
For further information please contact our pharmaceutical consultants at:
E-mail: [email protected] or Phone: +44 1223 819835.
worldwide headquarters
Aspen Technology, Inc.
Ten Canal Park
Cambridge, MA 02141-2201 USA
[phone] + 1 617 949 1000
[fax] + 1 617 949 1030
[world wide web] www.aspentech.com
[e-mail] [email protected]
Copyright © 2003. AspenTech and the Aspen leaf logo are trademarks or registered trademarks of Aspen Technology, Inc., Cambridge, Massachusetts USA. All rights reserved. All
other brand and product names are trademarks or registered trademarks of their respective companies. PB190 05/12/04