Written by:
Matthew Winterman
Senior Vice President, Global Supply Chain and Strategy, AstraZeneca
Jim Fox
VP of Sweden Operations and Head of Global Digital Transformation (Operations), AstraZeneca
Thanks to our work during the last several years, Global Operations is now more agile, responsible, reliable and efficient than ever before. Yet the world doesn’t stand still – and neither do we. In order to maintain our renowned exceptional supply of medicines to patients worldwide, we are focused on evolving our manufacturing and supply network to ensure it remains fit for the future, so that we can make and deliver our innovative, life-changing medicines on time, every time, in a sustainable way.
Our Global Operations team plays a pivotal role in transforming the pioneering science from our pipeline into medicines, ensuring these make it into the hands of patients who need them, when they need them across every corner of the globe. In 2022, we produced more than 26 billion tablet and capsule packs, along with 124 million devices – and all with our maintained record of 99% customer service levels.
Despite an environmental backdrop of growing complexity, volatility, and uncertainty, our global supply network has demonstrated incredible resilience by expertly navigating more than 100 unplanned global events in the last 12 months – everything from severe weather issues, rolling local restrictions as a result of the COVID-19 pandemic, raw material shortages and logistics delays in the world’s shipping lanes.
In recognition of this, our Global Operations organisation was recently listed among the Gartner Top 25 Supply Chains for 2023, an annual evaluation of the world’s superior Manufacturing & Supply Chain organisations across all industry sectors, not just those within the biopharmaceutical industry.
While we pride ourselves on delivering continued, exceptional performance, we also strive to push the boundaries, and to do that, we must challenge the status quo.
Thanks to our work and focus during the last several years, Global Operations is now more agile, responsive, reliable and efficient than ever before. However, as the world continues to change rapidly, we are focused on evolving our manufacturing and supply network to ensure it remains fit for the future, so that we can make and deliver our innovative, life-changing medicines on time, every time, in a sustainable way.
We are ensuring our global supply network is fit for the future by:
- Responding to evolving patient needs
- Shaping a smart future
- Leading in sustainability
- Investing in supply capability and development
Responding to evolving patient needs
By 2030, we have a bold ambition to launch at least 15 new medicines and be carbon negative. We also know that the types of medicines we develop and deliver in the future will change, which will require further investment in new manufacturing capabilities along with new and novel partnerships with external suppliers to deliver new modalities – such as cell and gene therapy.
These potential new therapies are different from the traditional small molecules and current large molecules which are often aimed at targets on the cell surface or delivered without a specific molecular-targeting strategy. As a result, we are designing new distribution and logistics capabilities to reach patients directly, along with more sustainable manufacturing processes.
Shaping a smart future
Through the power of Lean and digital, we have a clear opportunity to enable the delivery of new modalities and medicines to patients across the world faster than ever before and with the highest levels of reliability and efficiency. Transforming to a network of smart factories that are powered by disruptive technologies will enable us to deliver more medicines to more patients, more quickly.
As part of our digital strategy in Global Operations, we have identified seven priority building blocks that will deliver specific outcomes across manufacturing process control, physical asset management, learning and collaboration, workplace automation and simplification, along with sustainability targets.
Each building block brings together a suite of Lean digital products that seamlessly combine people, processes, data and technology. Further, by making them reusable, flexible and scalable, teams across the network are empowered to reimagine the way we supply medicines, ultimately delivering more value-driving initiatives. Our Lean digital products are developed and tested in key sites across our network that we have designated as ‘Lighthouse’ sites. These Lighthouse sites work alongside our functions and other sites in our network to scale Lean digital products across Global Operations.
Discover more about the lean digital ‘building block’ technologies accelerating our smart network of smart factories towards and even smarter future.
Leading in sustainability
As a global business, we are playing our part in tackling the biggest challenges of our time, from climate change to access to healthcare and disease prevention. While we explore ways to deliver new medicines at a rapid pace, it is essential that we do so in a way that is respectful to our planet. Given the magnitude of our Global Operations sustainability footprint, we have an essential role to play in not only delivering on our corporate sustainability goals, but ensuring that the supply network continues to evolve in a sustainable way.
Recognising the significant environmental potential of decarbonising our Global Operations at AstraZeneca
• Our Operations sites generate 84% of Scope 1 and 2 Greenhouse Gas (GHG) emissions
• Manufacture and supply of our commercial portfolio generates over 50% of the total Scope 3 GHG emissions
• Operations sites consume 77% of the energy and 75% of the total water used
• Operations are responsible for over 85% of the waste generated
While the goals of our Company’s Ambition Zero Carbon programme are truly ambitious, our supply chain is already making significant contributions and progress towards that ambition. 100% of the electricity used in our manufacturing sites now comes from renewable sources. We have partnerships in place in both the UK and US to supply biomethane, and 100% of gas in the UK and US will be biomethane by 2026. Additionally, 19% of our third party spend is now with suppliers who have verified science-based targets.
A two megawatt (2MW), two-acre solar field installed at our manufacturing facility in Mount Vernon, Indiana (US) meets 10-15% of the site’s electricity demand, reducing our energy supply emissions and improving site energy resilience.
Investing in our people and capability
When we think about the evolution of our supply network, it’s not simply about the medicines, technology, digital innovations and sustainability targets. Our people are at the heart of everything we do – and without them, success is impossible. With a long-term strategy for building capabilities and a culture of lifelong learning, we continue to put our people first, placing a strong focus on their growth and the collective future vision for the organisation.
With over 14,000 colleagues spanning more than 24 countries in Global Operations, we are strengthening our people’s data and digital capabilities, preparing them for the new world and ways of working. As we drive further synchronisation and integration, our teams are learning through simulations how our complex global supply chains connect and operate end-to-end, from raw materials all the way through delivery to customers. This is all part of our programme to build skills and behaviours in 10 strategic capabilities that are foundational to our evolving product portfolio, new business models, and inclusion and diversity.
We have an unwavering commitment to reaching the patients we serve on time, every time. I am proud of the tremendous efforts of our 14,000 people in Global Operations worldwide who are continuing to transform our supply network to make sure it is fit for the future, and above else, who continue to put patients first.
