Critical Products

Together with the vaccine portfolio, a large range of ethical pharmaceutical products are offered in areas such as Analgesics, Cardiology, Urology, Antibiotics and Antipsoriatics as well as life saving pharmaceuticals and antivenoms.

In addition CSL Biotherapies operates a unique 3rd Party distribution business, specialising in the distribution of cold chain products nationally.

“This necessarily means CSL Biotherapies has a broad range of customers from the Commonwealth and State Governments to pharmacists, hospitals, wholesalers, GPs and Occupational Health providers,” Supply Chain director Stephen Marlow tells Logistics Magazine.

“In addition CSL Biotherapies Influenza Vaccines (registered in more than 25 countries), Q Fever Vaccine and Antivenom products are manufactured at its Parkville site in Melbourne.”

“With its wide range of products and offerings, CSL Biotherapies is not immune to the impacts of generic competition and the entry into the Australian market of competing brands,” he says.

“CSL Biotherapies is also competing with local industry in Europe, USA and Asia in the seasonal area of influenza vaccination.”

Because of this complexity, Marlow argues a one size fits all supply chain network does not work. “When serving as many customers as we do, flexibility is essential to meet customer needs in an optimal method that is mutually beneficial,” he says.

“Otherwise you will fail to be successful in the segment.”

“Our supply chain people understand the industry in which we operate; we expect more from our people and partners than to be experts in logistics."

"We expect them to understand our products and our business; we have critical products that simply will not perform if the supply chain is broken and we spend a great deal of effort in educating across our supply chain elements.”

While it’s essential to control all aspects of the end to end supply chain, Marlow says CSL Biotherapies has sought to build its strength around customer alignment, achieved through visibility of processes and the involvement of both customers and suppliers in the planning processes. 

“CSL Biotherapies has been disciplined for a number of years in operating a formal S&OP process with great commitment to understanding across commercial, operations and senior executives,” he emphasises. 

“Our division has spent considerable effort in involving customers and suppliers in the process, with short term surprises largely a thing of the past."

"The development of trusted relationships and supply chain visibility with regards to inventory projections has aided all parties in ensuring success of the supply chain as a whole."

"There is a strong focus on the systems supporting the process, through inventory optimisation, demand management, and ERP systems. Put simply: rubbish in = rubbish out.”

Steve Marlow also says CSL Biotherapies makes a deliberate effort to review its supply base and active suppliers, in light of daily business objectives and throughout the strategic planning cycle. 

“Reviews allow procurement to anticipate supply needs and develop appropriate relationships to support the business goals,” he explains. 

“It is an accepted strategy to stick to those activities that are strategically important and outsource tasks to others that might provide greater efficiencies and cost benefits; however CSL Biotherapies continues to review its supply base and will consider all options to secure key supply as appropriate.”

Although dual supply is often desirable to mitigate against supply disruption, Marlow says CSL Biotherapies is not always in a position to utilise this approach. 

“It’s critical to success that CSL Biotherapies works in partnership with its key suppliers, developing alliances and clear expectations of service levels,” he maintains. 

“Compliance to regulatory and quality standards is non negotiable and having suppliers with a stake in the success of the supply chain has proven beneficial.”

 “Where vulnerabilities may exist, CSL Biotherapies has undertaken robust risk mitigation exercises to ascertain the likelihood and consequence of the risk,” Marlow adds.

“We invest time and effort into ensuring controls are in place so that the chance of disruption is minimised or eliminated."

"Strong risk management principles are critical to good sourcing management.”

CSL‘s growth through acquisitions has also lead to benefits from global purchasing. “We see key category management as an important global direction going forward,” Marlow says.

“Underpinning all CSL Biotherapies’ procurement activities is a strong code of ethics and good procurement practices to ensure all dealings with CSL Biotherapies are fair and equitable and conform to our needs for corporate social responsibility.”

In terms of managing demand, Marlow explains that the responsibility for forecasting at CSL Biotherapies lies with commercial operations and the accountability for those forecasts directly relates to performance management. 

”While this is important, the responsibility for all aspects of a brand does not lie with one individual,” he points out.

“CSL Biotherapies has a team based approach for the success of a brand, with cross functional representation.” 

“Intelligence from all angles is considered as part of the market strategy and forecasting model,” he says. “This is supported by processes through the S&OP cycle and analysis tools that aid the forecasting processes." 

“This process is all made possible by the very strong relationships CSL Biotherapies has developed with key customers of its major brands," Marlow says.

"Getting as close to the customer as possible, along with the analysis of data from many sources is essential to aid in the indication of movements and shifts in market demand.”

Stephen Marlow sees the opportunities within supply chain in the long term as exciting and challenging with continued focus required for ongoing success. 

“There is a strong push to ‘greening the supply chain’ and CSLwill certainly play its part in looking for environmental improvements across its supply chain network," he says. 

As an international player in the influenza market, CSL Biotherapies will look to optimise the Group’s manufacturing network to maximise market opportunity.  

"We'll continue to look towards technology to improve systems and processes and maintain our uncompromising demand for excellence from our supply chain people and partners."

"The ongoing pressure on prices, from oil to wheat and feed prices will ensure CSL maintains a focussed attention to its supply base and ongoing risk management.”

Ultimately, Marlow says the key  to CSL Biotherapies supply chain successes to date and its future is the desire to meet the customers’ needs. 

"Supply Chain must continue to be considered as part of the marketing mix of the company and will continue to evolve with an eye to the customer, developing strategies that support both commercial and market demands."