Novartis Vaccines & Diagnostics Case Study

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Novartis, a vaccines & diagnostics company, needed a strategic supply chain management solution for its R&D pipeline and vaccine investment decisions

Long development cycles, huge R&D investments, and a high chance of failure make the pharmaceutical industry a risky business. For Novartis Vaccines & Diagnostics, which develops preventative vaccine and diagnostic tools, it is crucial to have a strategic supply chain management solution for its R&D pipeline and vaccine investment decisions.

In order to be competitive, Novartis sets strategic objectives for the timing and number of its commercial products launches. Having the right portfolio of vaccine development projects across the various stages of its R&D pipeline is key to achieving these objectives. If the project portfolio becomes unbalanced, it must be rebalanced by investing in new vaccine development projects.

To improve its strategic supply chain management process, Novartis first required better forecasts of how vaccine development projects might move through its R&D pipeline. Then, using these pipeline performance forecasts, Novartis sought to optimize its acquisitions of new vaccines to augment its existing R&D project portfolio. Finally, Novartis needed to understand how its strategic supply chain management decisions translated into financial performance.

With Vanguard, they saw:

  • Pipeline performance forecasts and optimized drug acquisition schedules are delivers as interactive, real-time web reports for global access.
  • Novartis is now in a position to quickly model different portfolio development scenarios.
  • An assumptions dashboard allows users to easily modify input parameters.

“We were making strategic decisions that have long-term impacts on our business. Without Vanguard System, we would not have the visibility and analysis we need to make the right decisions.” -Dr. Schwarzkopf, MBA, PhD, Senior Portfolio Manager, Novartis

The Vanguard System delivers an interactive web-based forecasting and optimization solution. Using Vanguard Software’s simulation-based forecasting features, Novartis accurately models how each of the vaccines individually progress through its virtual lifecycle.

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