Biogen & Resilinc Case Study: Proactive Risk Case Study... BIOGEN AND RESILINC CASE STD: PROACTIVE RISK

  • View
    0

  • Download
    0

Embed Size (px)

Text of Biogen & Resilinc Case Study: Proactive Risk Case Study... BIOGEN AND RESILINC CASE STD: PROACTIVE...

  • BIOGEN AND RESILINC CASE STUDY: PROACTIVE RISK MITIGATION IN HURRICANE SEASON

    © Resilinc Corporation. All Rights Reserved.

    Biogen & Resilinc Case Study: Proactive Risk Mitigation in Hurricane Season February 2, 2018

  • Page 3

    BIOGEN AND RESILINC CASE STUDY: PROACTIVE RISK MITIGATION IN HURRICANE SEASON

    Learning in the fire In the final weeks of summer 2017, three hurricanes and a powerful earthquake killed more than 1,000 people and caused hundreds of billions in damage in the Caribbean, U .S . Gulf Coast and Central Mexico . Of these disasters, Hurricane Maria killed the most people—more than 500, a death toll that continued to mount in Puerto Rico for weeks after the storm passed .

    Maria also profoundly damaged the island’s large pharmaceutical industry, idling many of the estimated 50 pharmaceutical plants there, causing drug shortage concerns across the United States and leading the FDA to take emergency actions to ensure adequate supply of IV amino acids and IV saline.

    For large pharmaceutical companies, Maria and the other three natural disasters in August and September of 2017 caused supply chain disruptions. This whitepaper details how one company, Biogen, leveraged its supply chain resilience capabilities— capabilities enhanced since 2015 by Resilinc’s supply chain mapping and analytics services—to create competitive advantage and protect its stakeholders by taking action to mitigate the risks from these events .

    In all four events, the firm used Resilinc’s suite of capabilities, including supply chain mapping, 24x7 event monitoring and “What-If” scenario planning to understand potential impacts on suppliers and take proactive action . The information provided by Resilinc was utilized by the company’s cross-functional “war room” to make recommendations to senior management and provide guidance to line executives .

    In the wake of the disasters, Biogen used its experiences to create several disaster- response “playbooks” that will be incorporated in the company’s risk governance system, enabling managers of future natural disasters to respond in a streamlined fashion .

    Progressive approach to supply chain risk management Biogen discovers, develops, and delivers worldwide innovative therapies for people living with serious neurological and neurodegenerative diseases. Founded in 1978 as one of the world’s first global biotechnology companies by Charles Weissman, Heinz Schaller, Kenneth Murray, and Nobel Prize winners Walter Gilbert and Phillip Sharp, today Biogen has the leading portfolio of medicines to treat multiple sclerosis; has introduced the first and only approved treatment for spinal muscular

  • Page 4

    BIOGEN AND RESILINC CASE STUDY: PROACTIVE RISK MITIGATION IN HURRICANE SEASON

    atrophy and is focused on advancing neuroscience research programs in Alzheimer’s disease and dementia, MS and neuroimmunology, movement disorders, neuromuscular disorders, pain, ophthalmology, neuropsychiatry, and acute neurology . Biogen also manufactures and commercializes biosimilars of advanced biologics .

    Like other pharmaceutical and life sciences companies, Biogen operates in highly competitive markets under complex regulatory frameworks with pricing and reimbursement policies that are frequently changing and often the subject of intense political debate .

    Biogen has approximately 7,400 employees and markets its products in about 80 countries . Biogen manufactures its products at two facilities; located in North Carolina and Denmark and is currently building in Switzerland what will be its largest biologics manufacturing facility . It also sources products from third-party contract manufacturers and provides manufacturing services for clients at its own facilities .

    For a large global company in such a competitive industry, a robust supply chain risk management (SCRM) program can translate into competitive advantage through better cost management and improved ability to mitigate potential disruptions .

    A unique feature of Biogen’s SCRM program is its integration into the company’s Global Security Operations Center (GSOC), a 24/7 command center where highly trained staff monitor incidents and potential threats globally while tracking the safety of employees, facilities and products. “We have full integration of our enterprise software with our GPS monitoring service providers, so we have full visibility into every shipment,” said Daniel Biran, vice president of global security. Using public and subscription intelligence services, the GSOC sometimes knows about incidents like terrorist attacks “before CNN knows about it,” according to Biran. “We also monitor political trends, and we produce papers on geopolitical trends and events in sensitive regions, from the Middle East to the Korean Peninsula.”

    While it is uncommon for a corporate security department to be so involved in SCRM, Biran says that both functions benefit from the integration. “In order to design and build a robust supply chain security program, including addressing issues such as diversion, theft and counterfeiting, you need to understand who your partners are, understand what their business continuity plans are and collaborate with them to identify weak points along the supply chain,” he said.

    Since partnering with Resilinc, Biogen’s GSOC has been able to immediately measure the impact of critical incidents on its supply chain, a capability that proved immensely valuable in responding to the disasters of summer 2017.

    In order to design and build a robust supply chain security program, including addressing issues such as diversion, theft and counterfeiting, you need to understand who your partners are, understand what their business continuity plans are and collaborate with them to identify weak points along the supply chain.

    Daniel Biran VP, Global Security Biogen

  • Page 5

    BIOGEN AND RESILINC CASE STUDY: PROACTIVE RISK MITIGATION IN HURRICANE SEASON

    Irma called for expedited shipment The first of the four natural disasters to put Biogen’s GSOC into alert mode was Hurricane Harvey, which made landfall on the Texas coast on August 25. While flooding caused by the hurricane would do extensive damage to supply chains in many industries, especially petrochemicals, Biogen’s security and supply chain staff were quickly able to determine that the storm would have no significant impact on Biogen’s supply chain. That quick assessment, enabled by Resilinc’s data and technology, allowed Biogen’s supply chain teams to get back to their daily responsibilities and not get caught up in the reactive data collection or the whirlwind of media coverage of the event .

    Within a few days of Harvey’s dissipation, however, Biogen became concerned about Hurricane Irma . As monitored by Resilinc, Irma’s likely storm track was bearing down on supplier facilities in Florida and potentially other Southeastern states. “We ran ‘What-If’ scenarios that looked at the impacts if the storm covered all or parts of Florida, if it went west into Alabama or north into Georgia and the Carolinas,” said Lee Spach, director of supply chain security . As the storm was originally forecast to hit the east coast of the state, but actually made landfall on the Gulf coast of the state, Biogen’s ability to quickly assess multiple different scenarios ensured that they were prepared for any and all potential tracks of the storm .

    Biogen identified several Florida suppliers that were likely to be hit by the storm. At one site, there was a significant inventory of work in progress (WIP) materials awaiting final assembly and shipment to another facility in Kentucky for distribution. A painless solution was quickly developed: ship the goods immediately to the Kentucky site before Irma disrupted the previously scheduled shipment .

    Source:Resilinc

  • Page 6

    BIOGEN AND RESILINC CASE STUDY: PROACTIVE RISK MITIGATION IN HURRICANE SEASON

    Social media chatter sounds earthquake alarm Within days of Irma’s dissipation off the coast of New England, Biogen’s GSOC staff began issuing global security briefings on Hurricane Maria, which had intensified to category 5 status on Sept . 18, just before making landfall on Dominica .

    But as Maria was starting to batter islands in the Caribbean, Resilinc Event Watch notifications as well as social media chatter monitored for Biogen by DataMinr alerted the GSOC to a major earthquake in central Mexico. “We knew about the incident literally within 25 minutes,” said Biran. “We were quickly able to identify our resident and traveling employees in the zone of impact, communicate with all of them and let senior management know that everyone was safe.”

    To determine impacts to suppliers, Biogen used Resilinc to geofence the incident’s zone of impact and run What-If scenarios to determine potential impacts to suppliers . Biogen used its internal mapping systems to identify clinical sites such as universities and medical research institutes where drug trials were being conducted . “We were quickly able to determine that we had vials being made in Mexico City for our U .S . manufacturing, that our distributor for the Mexican market had materials stored in three private-label warehouses, and that we had several clinical sites dependent on movement of clinical supplies,” said Spach. To mitigate the risks of supply disruptions to its clinical sites, Biogen identified alternative sites outside the zone of impact and shipped the relevant products to t