Amgen is one of the world’s leading biotechnology companies. It is a values-based organization, deeply rooted in science and innovation to transform new ideas and discoveries into medicines for patients with serious illnesses.
New challenges and greater volatility in the marketplace are creating the need for a highly responsive and reliable global supply chain.
Product and market segmentation forms the starting point for this new way of working to gain a deeper understanding of customer values and expectations.
Another pillar for this new responsiveness is the creation of perfect end-to-end alignment throughout the chain – from the production sites to distribution in the local markets – with full visibility and strategically aligned KPIs. At Amgen, they first identified several key ‘moments of truth’ in their real-life business situation. These were then input into the simulation so that the participants could experience and learn from these situations. This helped them to translate their ambitions into actions.
The tailor-made business scenario in The Fresh Connection value chain simulator was used to recreate real-life moments of truth in a simulation exercise. Each small, cross-functional management team was tasked with designing and implementing a highly responsive and profitable supply chain. The addition of time pressure helped to highlight the moments of truth in decision-making.
For example, under pressure it can be very tempting to make a decision based on previous experience and intuition. However, involving the right people and considering the right information at the right moment in time significantly improves the quality of the decision. This became crystal clear in the simulation and the team members could adjust their behaviour accordingly. These moments of truth were discussed and translated into real-life examples during debriefing and evaluation sessions.
Takeaways from the learning experience:
- Better understanding of customer values and the supply chain
- Cross-functional alignment
- Mapping and alignment of metrics
- Fact-based decision-making using real data and aligned with the strategy headlines