Final Individual Project
Supply Chain Management Case: Sanofi
Supply Chain Management
Sanofi is a global integrated healthcare corporation focused on research, development, manufacturing, and marketing of therapeutic solutions with seven growth platforms: diabetes solution, human vaccines, innovative drugs, consumer healthcare, emerging markets, animal health, and the new Genzyme. The company is headquartered in Paris, France. Sanofi is a top 3 global player in Consumer Healthcare. Their mission is to protect health, enhance life and provide for healthcare needs of people around the world. They have 112 industrial sites in 40 countries: 82 pharmaceutics, 17 animal health, and 13 sites of vaccines. (Sanofi’s official website) Collaboration between facilities is key to the success of the supply chain. Five plants collaboratively work to produce sufficient quantities of the pharmaceutical Clexane® Lovenox®. “The Jurong, Singapore and Plöermel (France) sites provide the active ingredient (enoxaparin) to plants in Le Trait and Maisons-Alfort, France, and Csanyikvögy, Hungary, which manufacture and package the product. Collaboration also occurs across the Group's businesses: the Le Trait plant recently reinforced Sanofi Pasteur’s filling and packaging capacities through the production of vaccines for seasonal influenza (FluIM and FluID) as well as for infant meningitis (ActHIB) for the Japanese market. Similar collaborations are being developed to ensure vaccine availability for all patients.” (Sanofi’s official website) They benefit from having more than 20 R&D facilities worldwide including Sanofi Pasteur, Genzyme, and Merial. In 2012, the company had net sales of € 34,947 with the highest percentage of sales from emerging markets, followed by United States. (Sanofi Key facts and figures available on Sanofi’s website) Quality and Management Systems
The challenge of Sanofi’s senior management is to continuously provide safe and effective products worldwide. The quality management of all divisions reports to a Global Chief Quality Officer. The Global Quality is responsible in implementation of a set of quality management procedures and monitors the production quality throughout the entire lifecycle of the products. An efficient and consistent quality system is achieved through quality management principles, inspections by regulatory authorities, and innovative technological solutions. Consumer Healthcare is a very sensitive industry in terms of supply chain since the quality and safety of products are critical in serving the patients. All warehousing and distribution facilities of Sanofi provide a secure environment to protect raw materials, WIP inventory, and finished products. Sanofi has adopted and continues to adopt innovative technologies to ensure traceability, identify fake products and secure the supply chain. “These include the use of tamper-evident packaging to guarantee the integrity of the packs, anti-counterfeit security labels to authenticate their products, and data matrix codes for serialization which will improve the traceability and the identification of products. In addition, the Group has a central anti-counterfeit laboratory in Tours (France) dedicated to the analysis of medicines or products suspected of being counterfeit.” (“Quality and Management Systems”, available at Sanofi’s website)
There are three main stages in the Group's production process: manufacturing of active pharmaceutical ingredients, transformation into medicines and packaging. The active ingredients and main pharmaceuticals marketed by Sanofi are mainly produced in-house in accordance with the Group’s general policy, to decrease dependence on external suppliers and to maintain control over the entire value chain. All Group pharmaceutical and vaccines production sites are GMP-compliant (Good Manufacturing Practices) in accordance with international...
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