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Small molecule compound logistics outsourcing--going beyond the "thought experiment"
Devon L Ramsay1, Joseph D Kwasnoski, Gary W Caldwell
1Community of Research Excellence & Advanced Technology (CREATe), Janssen Pharmaceutical Companies of Johnson and Johnson, Welsh and McKean Roads, Spring House, PA 19477-0776, USA. dramsay1@its.jnj.com
Current Topics in Medicinal Chemistry
|May 11, 2012
Summary
Johnson & Johnson Pharmaceutical Research & Development (J PRD) successfully outsourced its compound inventory and processing to a third party, achieving cost savings and improved service. Sustainable success requires dedicated vendor management and transparent IT infrastructure.
Area of Science:
- Pharmaceutical industry
- Drug discovery
- Outsourcing strategies
Background:
- Increasing cost pressures drive pharmaceutical companies to outsource drug discovery.
- Compound collections are critical assets in drug discovery.
- Johnson & Johnson Pharmaceutical Research & Development (J PRD) initiated a significant outsourcing of its compound management.
Purpose of the Study:
- To discuss the implementation of a hybrid model for compound management.
- To share lessons learned from outsourcing compound inventory and processing.
- To evaluate the impact of outsourcing on cost, service, and flexibility.
Main Methods:
- Implemented a combination model: local compound logistics site support with an outsourced centralized processing center.
- Managed external third-party vendor for compound inventory and processing.
- Monitored service response, cost savings, and business adaptability over five years.
Main Results:
- Achieved substantial cost savings.
- Improved local service response times.
- Established a flexible platform adaptable to changing business needs.
Conclusions:
- Outsourcing compound management can yield significant benefits.
- Sustainable success depends on dedicated vendor management, collaborative approach, and robust IT infrastructure with transparency.
- Key lessons learned from the outsourcing experience were both predictable and unexpected.
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