Eli Lilly
Eli Lilly
Eli Lilly’s approach to supply chain management is somewhat unique due in large part to their type of industry, pharmaceuticals. While many firms would traditionally focus on things such as just in time inventory or inventory reductions, Eli Lilly does not because an inventory shortage in their industry is unacceptable as often times, people health or even their lives are at stake. Eli Lilly has adapted their supply chain management to meet the needs of their industry by ensuring the pipeline of supply is always loaded. Additionally, Eli Lilly’s approach to supply chain management is to focus on leveraging accurate forecasts and demand management.
Best Practices
A unique aspect of their supply chain is that they have standardized equipment across groups of plants so that each new drug that is developed fits into an establish tool kit. This allows them to boost productivity and efficiency. This commonality in processes enables the critical aspect of supply chain management in that it is linked directly to their demand management.
An additional best practice at Eli Lilly is their ability to manage their supply chain from a truly global perspective. The text indicated that the company has a forecast demand accuracy of 76% with an even high percent of accuracy, 90%, within the United States. This is accomplished by having well documented processes, good training materials, and quality trained people in these key positions. I feel that many organizations fail in this area because they do not invest the time into training their employees or are they particularly concerned with retaining the people who manage such a critical part of the supply chain process.
A secondary benefit of having their plants standardized is their ability to shift work between locations. The text indicated that as new products are being developed, short term and long term sourcing and capacity can fluctuate. The company’s unique manufacturing environment allows them ability to
Eli Lilly’s approach to supply chain management is somewhat unique due in large part to their type of industry, pharmaceuticals. While many firms would traditionally focus on things such as just in time inventory or inventory reductions, Eli Lilly does not because an inventory shortage in their industry is unacceptable as often times, people health or even their lives are at stake. Eli Lilly has adapted their supply chain management to meet the needs of their industry by ensuring the pipeline of supply is always loaded. Additionally, Eli Lilly’s approach to supply chain management is to focus on leveraging accurate forecasts and demand management.
Best Practices
A unique aspect of their supply chain is that they have standardized equipment across groups of plants so that each new drug that is developed fits into an establish tool kit. This allows them to boost productivity and efficiency. This commonality in processes enables the critical aspect of supply chain management in that it is linked directly to their demand management.
An additional best practice at Eli Lilly is their ability to manage their supply chain from a truly global perspective. The text indicated that the company has a forecast demand accuracy of 76% with an even high percent of accuracy, 90%, within the United States. This is accomplished by having well documented processes, good training materials, and quality trained people in these key positions. I feel that many organizations fail in this area because they do not invest the time into training their employees or are they particularly concerned with retaining the people who manage such a critical part of the supply chain process.
A secondary benefit of having their plants standardized is their ability to shift work between locations. The text indicated that as new products are being developed, short term and long term sourcing and capacity can fluctuate. The company’s unique manufacturing environment allows them ability to