Contents:

Overview Catalyst Summary Key Messages The pharmaceutical manufacturing landscape is in transformation Globalization adds a new layer of challenges to increasing visibility in the supply chain Inventory management becomes crucial as executives balance demand and cost Vendors must show how SCM optimizes manufacturing processes and delivers quick ROI ERP vs. SCM...whats the difference to the pharma world? The supply chain moves from commercial to clinical Table of figures Market Opportunity The pharmaceutical manufacturing landscape is in transformation Cost pressures are intensifying the necessity for SCM solutions A shift towards biotechnology and personalized medicine places new demands on drug supply chains Globalization adds a new layer of challenges to increasing visibility in the supply chain A rise in outsourcing requires proactive management of the supply chain China and India are key markets for manufacturing and SCM Regulations play a key role in the adoption of robust SCM solutions SCM solutions will aid manufacturing plant inspections In comparison to other technologies, manufacturing IT and SCM are of low priority Pharma believes existing ERP systems and Excel are enough A lack of pharma-specific SCM solutions limit options for the industry Customer Impact: SCM helps pharma improve manufacturing processes Better communication and collaboration with partners is an increasing priority SCM is extremely beneficial to an industry in which the end user is several stages down the supply chain Inventory management becomes crucial as executives balance demand and cost The supply chain moves from commercial to clinical Technology solutions can have a great impact on managing clinical supply chains Technology Evolution The changing pharma landscape alters how SCM is being used in manufacturing SCM will increasingly support the entire supply chain, from sourcing through distribution ERP vs. SCM...whats the difference to the pharma world? The pharma industry demands a full-featured SCM solution ERP can still play a role in manufacturing Few vendors play in the SCM market in the life sciences Opportunities for small SCM vendors await in Asia-Pacific What lies in the future for SCM in the life sciences? Go to market Vendors must show how SCM optimizes manufacturing processes and delivers ROI SCM vendors should provide training in demand forecasting The evolution of manufacturing standards will require companies to stay updated As the pharma manufacturing landscape becomes global, so should vendors C-level executives are the primary IT decision makers, but LOB should be considered APPENDIX Definitions and Abbreviations Methodology Further reading Ask the analyst Datamonitor consulting Disclaimer List of Figures Figure 1: The pharmaceutical supply chain from sourcing through consumer Figure 2: Pharmaceutical manufacturing of the past: regional manufacturing sites for regional distribution Figure 3: Current pharma manufacturing landscape: global manufacturing sites for global distribution Figure 4: Adoption level of SCM in India and China Figure 5: IT budgets for pharmaceutical and biotechnology companies Figure 6: Regional breakdown of IT budgets for pharmaceutical and biotechnology companies Figure 7: Level of adoption for SCM solutions Figure 8: Challenges facing the pharma industry Figure 9: Drug discovery and development process Figure 10: Investment in SCM solutions in various manufacturing industries Figure 11: Importance of features in a comprehensive SCM solution Figure 12: Key features an SCM solution should incorporate Figure 13: Vendor mindshare for SCM solutions, software and services Figure 14: Regional breakdown for vendor mindshare for SCM solutions Figure 15: Importance of decision makers for IT investment