YLUK Healthcare Case Study

INSIGHT INTO ACTION

CASE STUDY: HEALTHCARE

OUR CUSTOMER’S CHALLENGE

Our customer always has patients’ wellbeing at the heart of everything they do, pushing the boundaries of science to deliver life-changing medicines all over the globe. They have significantly invested in Research & Development

sourcing alternative solutions will be extremely time sensitive and have a higher associated cost.

an already highly regulated supply chain. Online platforms have also led to the speed and scale that threats can be escalated and acted upon to be at its highest in history, with organised criminal groups exploiting technology to aid illicit schemes and further their global reach. This is amongst growing political unrest causing a rise of illegal immigration at international ports. With these increased tensions, the demand on the supply chain to deliver is higher than ever. Working capital is tied into R&D, whilst declining sales from mature products means funds must be sourced from elsewhere in the business. This has led to a refocus on operations, with an emphasis to create a leaner model - with logistics, control and inventory at the heart.

Despite the growing pressure on our customer’s revenue, some government agencies are enforcing price ceilings – driving them to source alternative channels to cover their costs. This is alongside patents expiring on several of their most prevalent products allowing generics, benefiting from a lower cost base, to enter the market at reduced prices. Alongside this, the rise of e-commerce has led to more readily available counterfeit pharmaceuticals in the marketplace, risking patients’ wellbeing and the industry’s integrity. This has led to the Falsified Medicines Directive, enforcing full end- to-end traceability and tamper evident features on packaging, adding yet further complexity to

(R&D), with an industry shift towards the advancement of biopharmaceuticals.

Yet, the growing complexity of regulatory compliance has made it increasingly challenging to bring new pharmaceuticals to market. The development of biologics also adds further intricacies, with limited production capacity and stricter temperature requirements throughout the supply chain. Furthermore, failure to comply with these will risk quality release issues - restricting supply and increasing exposure to additional supply challenges and costs. Especially as

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