Insights into the Supply Planning

Process

Courtney Clark, Jan Szydlowski, Sergio Rivera

Claudia De Bourg, Daniel Schwartz, Rex Agbajor

Supply & Demand

Group #2

The MPS at

GlaxoSmithKli

ne

Agenda

Company Overview

Operations

Supply Planning Process

Master Production Schedule (MPS)

Q&A

2

Company Overview

GSK Focus

Pharmaceuticals

Vaccines

Consumer Healthcare

(GSK Canada, 2014)

3

Company Overview

GSK Targets

Respiratory Illnesses

Diabetes

Viral Control

Infections

Central Nervous System Disorders

Scale of GSK

99 000+ employed

Operating in 115 countries

CAD $47 billion annual revenue in 2013

4

Operations

GSK Mississauga Facility

Sells exclusively to internal GSK customers

Produces liquids, tablets and ointments

Components of Finished Goods

Active Pharmaceutical Ingredients (API) -

substances that are responsible for the beneficial

health effects

Excipients – preservatives / stability materials

Primary and Secondary Components - packaging

5

Supply Planning Process -

Demand

Forecasts for:

USA (Mainly)

Latin America

Parts of Asia

(I.e. Japan)

Parts of

Europe

Canada

(<10%)

Family Level

(J. Shang et al. 2008)

6

Supply Planning Process –

S&OP

Vital

component of

the process

Integrates all

departments

Shapes

demand inputs

for MPS

7

(J. Shang et al. 2008)

Supply Planning Process –

Inventory Raw Materials

Highly perishable

Expensive

Major Risk

Finished Good

Not inventoried

Longer shelf life

Distributor carries risk

Must be monitored very closely through ERP

8

(J. Shang et al. 2008)

Supply Planning Process

(J. Shang et al. 2008)

*Continu

ous Loop

9

Key Role “Functional Areas”

Safety Stock

10

Master Production Schedule

INPUTS

SAP

OUTPUTS

11

Master Production Schedule

(J. Shang et al. 2008)

RUNNING

RATES

DEMAND

PLANNER

-FC ERRORS

-OUTLIERS

-

CONSTRAINT

S

MPS

12

Master Production Schedule

13

Thank YouQ&A