Press Release

DCAT Sharp Sourcing Examined Solutions for Optimizing Customer–Supplier Relationships

Robbinsville, NJ, June 30, 2017—DCAT Sharp Sourcing, held June 27, 2017 at the Hyatt Regency Hotel in New Brunswick, New Jersey, brought together pharmaceutical company executives and suppliers to examine issues of topical importance impacting the pharmaceutical manufacturing value chain and the customer–supplier relationship.

Buyers’ and Suppliers’ Forums

Sharp Sourcing kicked off with two specialized forums, respectively for buyers and suppliers. The Buyers’ Forum, an interactive session for sourcing, procurement, and supply management professionals, addressed three topics: (1) talent in sourcing and procurement with a focus on Millennials and Generation Y professionals; (2) collaborative supply-chain planning; and (3) technology-led sourcing of contract development and manufacturing organizations (CDMOs) and contract manufacturing organizations (CMOs).

• Talent in Sourcing and Procurement. Much attention has been focused on Millennials and Generation Y professionals and their role in the current and future workplace, but that perspective is typically provided by those outside this age group. To gain a first-hand perspective, two early-career professionals, Louis Yuk, Senior Sourcing Associate, Bristol-Myers Squibb Company, and Philip Yu, Senior Specialist, Global Packaging Procurement, Merck & Co., Inc., shared insights on the unique skills and perspectives that Millennials and Generation Y professionals can bring overall and specifically to sourcing and procurement organizations.
• Collaborative Supply-Chain Planning. Strategic supplier relationships are crucial in bringing value to a company, and Erik Palkhiwala, Senior Category Manager, Biologics & Vaccines Materials, Janssen Supply Chain, Global Procurement, Johnson & Johnson, provided best practices for managing these relationships in light of supplier consolidation. He examined buyer/sellers engagement models and priorities that may need redefinition to manage changes resulting from mergers and acquisitions.
• Technology-Led Sourcing. Product complexity in the pharmaceutical industry is increasing, whether it is in the molecule itself as an active pharmaceutical ingredient (API), the formulation to enable delivery of a new drug, or in the manufacture of the API or drug product. Luckner G. Ulysse, PhD, North America Regional Operations Leader Pharm/Packaging, External Manufacturing Operations, Merck & Co., Inc., offered key issues to consider when sourcing specialized technology from CMDOs and CMOS.

The Suppliers Forum, held concurrently to the Buyers’ Forum, featured pharmaceutical customer-centric insights for suppliers, CDMOs, and CMO. Daniel Cohen, Managing Director, RBC Capital Markets LLC, provided a Wall Street perspective on the pharmaceutical outsourcing market for CMDOs and CMOs. The Suppliers’ Forum also examined specific segments in pharmaceutical outsourcing. Valdas Jurkauskas, PhD, Senior Director, Pharmaceutical Development and Manufacturing, Corbus Pharmaceuticals, provided insight on the push–pull interaction between regulators and sponsor companies in defining starting materials, the beginning point for a cGMP manufacturing process. Michael Semo, Advisor, External R&D Strategy, Small Molecule, Eli Lilly and Company, shared the company’s experience in early-stage development for small-molecule APIs, and Sean M. Johnston, Former Vice President, Manufacturing, Paratek Pharmaceuticals, provided case examples of managing both API and drug product development and manufacturing in the customer–supplier relationship.

Joint Afternoon Session

Buyers and suppliers came together for the Joint Afternoon Session to learn from leading executives on practical ways to resolve common challenges in sourcing and procurement and on new tools for managing the customer–supplier relationship. This session featured a roundtable of chief procurement officers (CPOs), a discussion of supply-chain financing, and a market outlook for APIs.

• CPO Roundtable. The CPO Roundtable featured four CPOs: Len DeCandia CPO, Johnson & Johnson; Michael Hoffman, Vice President, Global Procurement, Pfizer; Walter Charles, CPO, Biogen; and Tommy Mitchell, CPO, GE Healthcare. Topics discussed included: optimizing operating models through global shared services; using Big Data analytics in procurement; brand creation for the global procurement function; and supplier-enabled innovation.
• Supply-Chain Financing. Two industry experts provided insight on supply-chain financing (SCF), designed as a mutually beneficial approach for customers and suppliers in satisfying working-capital requirements. SCF is a buyer-led rather than a supplier-led early-settlement financing arrangement. With SCF, the buyer facilitates the finance arrangement with a bank or other finance provider, which then has the benefit of using the buyer’s balance sheet. It optimizes cash flow by allowing businesses to lengthen their payment terms to their suppliers while providing the option for their suppliers to get paid early. Douglas Schoch, Vice President, Siemens Capital Company LLC, provided an overview of SCF, and Erik Meader, PhD, Senior Director, Global Procurement, Pfizer, explained how the company is applying SCF with its suppliers.
• API Outlook. Kate Kuhrt, Head, Go To Market, Life Sciences, Clarivate Analytics, provided an outlook on the market for APIs by examining the factors influencing demand and supply.

Keynote Address

The afternoon session concluded with an engaging and uplifting keynote address by former NY Giants quarterback and Super Bowl MVP Phil Simms. Mr. Simms recounted leading his team through ups and downs during his NFL career and the key lessons learned in driving his and his team’s success . Attendees enjoyed a question and answer session with Mr. Simms and joined him for a meet and greet during the final networking reception. 

About DCAT

As a not-for-profit, member-supported business development association for the global pharmaceutical manufacturing industry, the Drug, Chemical & Associated Technologies Association (DCAT) is committed to providing programs, events and services that help our members expand their network of customers, suppliers and colleagues in the industry. Founded in 1890, DCAT is the industry’s premier business development association whose membership is comprised of companies that manufacture, distribute or provide services to the pharmaceutical, chemical and related industries. With over 450 corporate members, DCAT is headquartered in Robbinsville, New Jersey.

Contact:
Erin Sanders
Senior Communications & Technology Specialist
609-208-1888