Tuesday, March 6, 2012

Supply Chain Structural Change: Pharmaceutical Industry
©2012 INSEAD Case Study
Also available: Teaching Note

The case investigates the impact of the increasing trend of pharmaceutical firms to outsource core research activities to biotech firms and other contract research organizations. The fluid nature of supply chain design in evolving industries is highlighted, and robust supply chain policies to respond to this evolution are proposed.

Pedagogical Objectives: This case is intended to demonstrate the evolving nature of supply chains that include the R&D function in an industry where R&D is considered the mainstay of competitive advantage. The case illustrates how global upheaval in the life sciences industry has forced pharmaceutical firms to search for alternate innovative business models to compete in a globalized world.