Supply Chain Efficiency for Drug Delivery KPI in Pharmaceuticals & Biotech

This document details the Supply Chain Efficiency for Drug Delivery KPI, focusing on its data requirements, calculation methodology, application of an analytics model, and business value within the pharmaceutical and biotech industries.

Data Requirements

To accurately calculate Supply Chain Efficiency for Drug Delivery, several data points are required. These can be broadly categorized into:

Specific Fields, Metrics, and Data Sources:

• Order Data:
  • Order ID:

    Unique identifier for each order.

  • Order Date:

    Date the order was placed.

  • Requested Delivery Date:

    Date the customer requested delivery.

  • Product ID:

    Unique identifier for the drug product.

  • Quantity Ordered:

    Number of units ordered.

  • Customer ID:

    Unique identifier for the customer (e.g., hospital, pharmacy).

  • Shipping Address:

    Delivery location.

• Shipment Data:
  • Shipment ID:

    Unique identifier for each shipment.

  • Actual Delivery Date:

    Date the shipment was actually delivered.

  • Shipped Quantity:

    Number of units shipped.

  • Carrier ID:

    Identifier for the shipping carrier.

  • Tracking Number:

    Tracking number for the shipment.

  • Shipping Cost:

    Cost associated with the shipment.

• Inventory Data:
  • Product ID:

    Unique identifier for the drug product.

  • Inventory Location:

    Location of the inventory (e.g., warehouse).

  • Quantity on Hand:

    Current stock level.

  • Batch Number:

    Unique identifier for the batch of product.

  • Expiration Date:

    Date the product expires.

• Manufacturing Data:
  • Product ID:

    Unique identifier for the drug product.

  • Batch Number:

    Unique identifier for the batch of product.

  • Manufacturing Date:

    Date the batch was manufactured.

  • Lead Time:

    Time taken to manufacture a batch.

• External Data (Optional):
  • Weather Data:

    Weather conditions that might affect delivery.

  • Traffic Data:

    Traffic conditions that might affect delivery.

Data Sources: These data points are typically sourced from various systems, including:

• Enterprise Resource Planning (ERP) Systems:

  For order, inventory, and manufacturing data.

• Warehouse Management Systems (WMS):

  For inventory and shipment data.

• Transportation Management Systems (TMS):

  For shipment and carrier data.

• Customer Relationship Management (CRM) Systems:

  For customer data.

• External APIs:

  For weather and traffic data.

Calculation Methodology

Supply Chain Efficiency for Drug Delivery can be calculated using several metrics. A key metric is the On-Time Delivery Rate, which measures the percentage of orders delivered on or before the requested delivery date.

Step-by-Step Calculation:

1. Identify Delivered Orders:

   Filter all orders that have been delivered.

2. Determine On-Time Deliveries:

   For each delivered order, compare the Actual Delivery Date with the Requested Delivery Date. If the Actual Delivery Date is on or before the Requested Delivery Date, the order is considered on-time.

3. Calculate On-Time Delivery Rate:

   Formula: (Number of On-Time Deliveries / Total Number of Delivered Orders) * 100

   Example: If 95 out of 100 delivered orders were on-time, the On-Time Delivery Rate is (95/100) * 100 = 95%.

Other relevant metrics include:

• Average Delivery Time:

  Average time taken to deliver an order (Actual Delivery Date - Order Date).

• Order Cycle Time:

  Time from order placement to delivery.

• Fill Rate:

  Percentage of orders fulfilled completely.

• Shipping Cost per Unit:

  Total shipping cost divided by the number of units shipped.

Application of Analytics Model

An AI-powered analytics platform, such as 'Analytics Model,' can significantly enhance the calculation and analysis of this KPI. Here's how:

Features and Benefits:

• Real-Time Querying:

  Users can query the data using free text, such as "Show me the on-time delivery rate for the last quarter for product X." The platform translates this into database queries and retrieves the relevant data in real-time.

• Automated Insights:

  The platform can automatically identify trends, patterns, and anomalies in the data. For example, it can highlight specific products or regions with low on-time delivery rates or identify bottlenecks in the supply chain.

• Visualization Capabilities:

  The platform can present the KPI data in various visual formats, such as charts, graphs, and dashboards. This makes it easier for users to understand the data and identify areas for improvement.

• Predictive Analytics:

  Using machine learning algorithms, the platform can predict potential delays or disruptions in the supply chain, allowing proactive measures to be taken.

• Customizable Dashboards:

  Users can create personalized dashboards to monitor the KPIs that are most relevant to their roles and responsibilities.

Example Use Case: A supply chain manager can use 'Analytics Model' to quickly identify that the on-time delivery rate for a specific product has dropped significantly in the last month. The platform can then automatically analyze the data to identify the root cause, such as a delay in manufacturing or a problem with a specific carrier. This allows the manager to take corrective action quickly and minimize the impact on customers.

Business Value

The Supply Chain Efficiency for Drug Delivery KPI is crucial for pharmaceutical and biotech companies for several reasons:

Impact on Decision-Making and Business Outcomes:

• Improved Customer Satisfaction:

  On-time delivery of medications is critical for patient care. A high on-time delivery rate leads to improved customer satisfaction and loyalty.

• Reduced Costs:

  Efficient supply chains minimize waste, reduce storage costs, and optimize transportation routes, leading to significant cost savings.

• Enhanced Operational Efficiency:

  By identifying bottlenecks and inefficiencies, companies can streamline their processes and improve overall operational efficiency.

• Better Inventory Management:

  Accurate tracking of inventory levels and delivery times allows for better inventory management, reducing the risk of stockouts and overstocking.

• Regulatory Compliance:

  In the pharmaceutical industry, timely delivery of medications is often a regulatory requirement. Monitoring this KPI helps ensure compliance.

• Competitive Advantage:

  Companies with efficient supply chains can offer faster and more reliable delivery, giving them a competitive edge in the market.

• Data-Driven Decision Making:

  The KPI provides valuable data for making informed decisions about supply chain improvements, resource allocation, and strategic planning.

By leveraging the Supply Chain Efficiency for Drug Delivery KPI and utilizing an analytics platform like 'Analytics Model,' pharmaceutical and biotech companies can optimize their supply chains, improve customer satisfaction, and achieve better business outcomes.