Abstract
As illustrated in Chap. 1, it is vital for companies in the chemical and pharmaceutical industries to continuously review their own business processes to meet the varying and formidable challenges of a global world.
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- 1.
For example, sales, financial, and inventory objectives, and resource bottlenecks.
- 2.
A plan that is technically feasible using the resources of the company (which may be yet to be provided).
- 3.
Agreed upon between the functional areas like sales, marketing, product development, supply chain coordination, production, and business planning.
- 4.
All areas of the company refer to a single plan. The key concept is "one set of numbers".
- 5.
Volume level denotes an appropriate aggregated planning level that supports the aims of S&OP (examples include hierarchy elements like "product family" or "product group"). By contrast, there is the mix level, which represents the finished products at sales or stock keeping level. In most cases, it is not appropriate to carry out S&OP at mix level (Wallace 2005).
- 6.
In larger companies decisions are reached at the level of the business unit or responsible division.
- 7.
And should also be used to simplify the process.
- 8.
This proves difficult, for example, when production capacity utilization and operational efficiency depend to a major extent on the product mix (which may involve manufacturing co-products) and the sequence of the dispatched orders.
- 9.
Increased complexity may, for instance, result from the fact that master data for new product developments is not yet sufficiently complete to be used in a more detailed planning model. It is also often difficult to generate a reasonably reliable long-term sales forecast for these products at a detailed level.
- 10.
Depending on the planning scenario, the horizon is between 12 and 36 months.
- 11.
Engl.: shaping of demand.
- 12.
Due to the different horizon and often also for reasons of complexity.
- 13.
This will not, of course, feature in every monthly planning cycle, but S&OP is the right instrument for making simulations of this nature.
- 14.
This type of process can also be described as "event-driven".
- 15.
For example, simulations of optimistic and pessimistic scenarios.
- 16.
Details of PFs and PPFs can be found in Sect. 3.2.3.3, "S&OP Planning Levels".
- 17.
The meeting must not usually last longer than one and one-half to two hours.
- 18.
Achieving goals does not necessarily imply that the company has also achieved success in the market. To be able to draw this conclusion, the "right" goals have to be set, which itself presents a difficult challenge.
- 19.
The pharmaceutical representative may be a sales representative, regional manager, or key account manager.
- 20.
Depending on the field of indication, the direct contact persons may not always be the physicians but instead specialist nurses and other medical specialists. One example would be diabetes advisors, who are addressed directly by pharmaceutical representatives.
- 21.
Prescription data is available for individual fields of indication. However, this data is not suitable for use as the sole basis for analysis. It is therefore used only as an additional source of information. The data source we are referring to is IMS Xponent® data (IMS Health 2008a).
- 22.
Market data, such as that of IMS Health, is normally used to measure the success of the indirect sales channel in detail (IMS Health 2008b).
- 23.
Supplying pharmacies supply several clinics—not all clinics have their own pharmacy.
- 24.
Germany does not yet have a mechanism for obtaining orders that accommodates wholesalers as a logistical link in the sales chain. As a result, there is no need to make allowance for wholesalers financially in the relationship between the hospital and the pharmaceutical company as is done in the United States, for example, with the chargeback process.
- 25.
CAPA stands for corrective and preventive action.
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Grüne, G., Lockemann, S., Kluy, V., Meinhardt, S. (2014). Mapping Business Processes in the Process Industry: Selected Examples. In: Business Process Management within Chemical and Pharmaceutical Industries. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-11717-6_3
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