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Developing & Managing an External Supply Chain

We aim to take you from a statement of strategic intent to a living process that embeds continuous learning, applies a disciplined approach to near-term improvement, and drives visible, coherent progress toward long-term strategic goals.

Strategy = Diagnosis + Guiding Policy + Coherent Action
(R.P. Rumelt "Good strategy/Bad strategy, the difference and why it matters", Profile Books, 2011)

Diagnosis

  • A clear-eyed definition of the challenge that cuts through complexity - highlighting the critical elements within corporate goals, market shifts, technologies, and internal capabilities to focus attention where it matters most.

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Guiding Policy

  • A principled approach for addressing the challenge, rooted in current best practices. It sets expectations, evolves with learning, and ensures consistent execution across teams tackling related tasks.

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​Coherent Action

  • A coordinated set of steps aligned with the guiding policy. These actions prioritize strategic impact - such as stabilizing processes across a portfolio before optimizing a single supply chain.

  • Consider strategic objectives through the lenses of external context & internal + network strength to determine areas of focus.

  • Prioritize these based on current performance, applicable constraints and perceived opportunity

  • Apply applicable "guiding policies" to planned actions addressing these

  • Measure outcome - learn + improve + repeat

Strategic objectives Context • SWOT • Barriers • Industry direction • Corporate model Areas of Focus Coherent Action Current performance Potential impact Scale of opportunity Constraints + Guiding Policies +
3 components of strategy

Likely strategic objectives

  • Optimal supply chain performance (current portfolio)

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  • Effective LCM (current portfolio)

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  • Dynamic capability - ability to identify and respond to opportunity

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  • Learn and improve

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  • ​​(Constantly) challenge perspectives

  • Seek to engage and involve

Evidence Guiding Policy Diagnosis Coherent / Prioritised action Measured outcome Revised focus Revised approach Challenge perspective and interpretation Statement of “best practice” Define & prioritise action; measure outcome and respond

Concept adapted from Rumelt (2011)

ObjectivesToCoherentAction

Process for Driving Strategy and Performance Improvement in External Manufacturing

 

  1. Establish guiding policies  - Define initial policies to anchor coherent action and strategic alignment.

  2. Assess product portfolio - Rank products by revenue; evaluate performance and communicate using a traffic-light matrix (the matrix below uses illustrative (fictional) data to demonstrate a model that has been successfully applied in practice).

  3.  Connect policies to performance gaps - Use color-coded headers and policy cards to link areas targeted for improvement to guiding policies.

  4. Prioritize action - Drive improvement from stabilize to grow, focusing first on high-revenue products.

  5. Embed learning and adapt - Align efforts with guiding policies; revise policies based on execution insights and expand scope to close gaps.

Strategic Objectives

  • 1&5 --> Learning organization

  • ​2,3 & 4 -->  Optimal supply chain and LCM​

Coherent Action Creation of a robust supply chain Optimal process scaling and design CMO selection, develop - ment and partnering Business Continuity Contracts (incl. QTAs / MSAs) LCM – approach Investment / capital + competency + org structure Project execution and gating Sequence of change Managing Perform - ance Measure - ment of opportunity ( Cost Model)
Creation of a robust supply chain

A robust supply chain protects patients and revenue

Absolute requirement - Stability first.

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  • The minimum requirement is supply stability—defined as a combination of proven performance (across processes and providers), maintained inventory, documented response protocols, and other contingencies that collectively ensure continuity. This level of assurance prevents management from being forced into recurring, reactive crisis mode, allowing them to stay focused on deliberate strategic advancement.

 

Build from stability

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  • Reliable, robust and responsive

Short with frequent resupply  

Predictable

Consolidated

Geographically proximate

Compliant

Adequate capacity, redundancy and contingency*

  • Defined recovery path protecting supply from shocks in supply or testing failure

  • Simple, linear design providing clarity of ownership and minimized points of interface

  • Reliable, collaborative, engaged and pro-active supply chain participants

  • Effective data management, timely and relevant communication

  • Consistent with tax and pricing structures

Hover over / Tap elements of policy hub & matrix to see detail

Creation of a robust supply chain

Optimal process scaling & design

CMO selection, development & partnering

Business continuity

Contracts (incl. QTAs / MSAs)

LCM approach

Investment / capital + competency + org structure

Project execution & gating

Sequence of change

Managing performance

Measurement of opportunity (Cost Model)

Creation of a robust supply chain

A robust supply chain protects patients and revenue

  • Reliable, robust and responsive

Short with frequent resupply*  

Predictable*

Consolidated*

Geographically proximate*

Compliant*

Adequate capacity, redundancy and contingency*

  • Defined recovery path protecting supply from shocks in supply or testing failure*

  • Simple, linear design providing clarity of ownership and minimized points of interface

  • Reliable, collaborative, engaged and pro-active supply chain participants*

  • Effective data management, timely and relevant communication

  • Consistent with tax and pricing structures

PolicyMTop

Strategic Interpretation of the Matrix

The matrix clarifies priorities and drives coherent action.


A red under LCM flags a concern that cannot be allowed to drift — every delay increases the risk of competitive erosion. But when resources are finite, choices must be made.


If effort is spread thinly across LCM, Stability, and Simplify, the impact of each is diluted. Underpowered stability efforts leave management trapped in reactive mode — constantly firefighting, unable to focus on longer-term strategic moves like LCM.


The matrix signals a clear imperative: stabilize first, and do so decisively. Without that foundation, LCM options may narrow, and strategic momentum will stall. Focused action beats scattered intent — spreading resources too thinly risks achieving none of the goals.


In this context, Product 9 stands out. It shows red under Stability, yet delivers the lowest revenue and has just two years of exclusivity remaining.
Why defer LCM activity for Product 1 to service it? Exit now — and refocus where it matters.

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