The Supply Chain of pharmaceutical companies must now face up to all sorts of specific constraints: increasingly restrictive European and national regulations, higher R&D and production costs, complex and fairly rigid marketing processes, greater competition (generics), submission to Good Manufacturing Practice (machine, method, manpower, material, milieu)…


One of the main drivers for improving the performance of companies in this sector is optimisation of the supply chain - which must be more reactive and agile from the supplier right through to the customer: 

  • Improvement & rationalisation of the production tool: Good Manufacturing Practice, labelling, instruction manuals, distribution, transit time and product shelf-life (best-before or use-by date for example) differ depending on country, bringing about the need for specific human resources and an industrial organisation per zone. This means that the industrial tool must be adapted locally to these specific restrictions (resetting of the product portfolio, product standardisation upstream, etc.) and the manufacturing processes need anticipating at central level. 
  • Improve anticipation of production and its ups and downs: anticipation of the product manufacturing process and compliance with product transit times calls for an efficient forecasting process to be set up in local production units. Forecasts made at central level will manage the business upstream. Regional forecasts will supply local needs from pharmaceutical factories. Once labelled and packaged, pharmaceuticals don't stay at central level but are shipped locally over the hundred or so markets they supply. 
  • Improve management of distribution, stocks and cost increases: better anticipation on product manufacture enables more effective management of stock which must be as sufficient as possible in sales outlets, chemists and hospitals whilst maintaining a high level of service and acceptable level of stockout. Adjusting the frequency of product delivery to end customers and more effectively anticipating their restocking through optimisation upstream (better forecasts) helps to achieve a level of responsiveness that is likely to limit stock level and therefore the inherent costs. 

What DIAGMA can do for you

Founded in 1973, DIAGMA is now a leading consultancy firm in Supply Chain Management - and several-times the top-ranking firm in its sector.

DIAGMA has extensive experience and unique expertise in the pharmaceuticals sector: overhaul of the Supply Chain concept and organisation, development of the logistics network, choice and setup of APS (forecasting, production and supplies planning), TMS, WMS, improvement of warehouse performance, optimisation of transport costs…

DIAGMA offers a broad range of new services that best meets the myriad needs expressed by Management, Supply Chain, Logistics and Purchasing Departments.

Due to the specific products and complex processes, DIAGMA takes a methodological approach tailored specifically to tackling Supply Chain problems in the pharmaceuticals sector, enabling companies not just to work on medium/long-term objectives but also to get concrete results in the short-term.