Junichi Fukute, Former Head of Supply Chain Unit

Developing a Resilient and Genuinely “Smart” Supply Chain

January 31, 2022

Our People & Culture

Through the use of digital technologies, Daiichi Sankyo is developing a Smart Supply Chain to ensure global business continuity and realize our 2030 Vision.

In April 2021, Daiichi Sankyo announced its 5-year Business Plan (FY2021–FY2025) and its 2030 Vision to become an “Innovative Global Healthcare Company Contributing to the Sustainable Development of Society.” In this story, Mr. Junichi Fukute, Head of the Supply Chain (SC) Unit, discusses the critical role of the Unit and the strategy in place to further develop the supply chain in order to achieve this vision.

Promoting the use of digital technology in all aspects of procurement, production, and logistics

Under the 5-year Business Plan, the Supply Chain Unit’s vision is to “contribute to maximizing the value of ADC*1 products and to realize Smart Supply Chain.”

By “Smart Supply Chain”, we mean not only the promotion of DX (digital transformation) at our plants, such as job automation and the realization and expansion of increased remote or automatic control, but also the use of digital technologies in all aspects of the supply chain. This includes procurement, supply and demand planning, and logistics, as well as the visualization and integration of data in order to reach a new, more advanced level.

We are currently working on building a new database that will enable us to centralize up-to-date information from all locations. At our plants, we are also actively working to predict when equipment will fail by introducing digital technology and improving inspection accuracy by using image processing technology.

Building a “bio-competent” company in terms of hardware and human resources

The Onahama factory of
Daiichi Sankyo Chemical Pharma Co., Ltd.

Daiichi Sankyo has been focusing on low-molecular pharmaceuticals through chemical synthesis. However, in order to shift to biopharmaceuticals, including ADC products, we are planning major capital investments through 2025 to strengthen and expand hardware under the 5-year Business Plan. At the same time as expanding facilities at our plants both in and outside Japan, we will strategically plan and implement the use of contract manufacturing organizations (CMOs) as external resources in preparation for the future global launch of ADC products. We optimize our production system by balancing internal production with CMOs production in accordance with our basic policy of “diversification of investments” that takes into account fluctuations in demand.

At the same time, we will focus our efforts in terms of human resources by developing and securing highly specialized biopharmaceutical personnel. We are also working actively to recruit supply chain professionals in addition to providing specialized training both internally and at external educational institutions.

Building a more resilient production and supply system

To ensure the stable production and supply of our products and be prepared for unexpected emergencies, we are focusing on improving our Quality, Cost, and Delivery (QCD) + Resilience (R) from a global perspective. The environment surrounding the pharmaceutical supply chain continues to change significantly due to various factors, such as natural disasters, the COVID-19 pandemic, and geopolitical risks. In this context, it is critical to be resilient by being able to quickly resist and recover from any unfavorable circumstances or changes. The Daiichi Sankyo group of companies (DS Group) is taking a number of concrete steps to achieve this, including diversifying our plants both in and outside Japan, finding the best balance between in-house and CMOs production, securing multiple procurement sources and transportation routes, and strengthening measures to handle potential flooding at each plant.

As the global supply chain becomes increasingly unstable due to frequent natural disasters and international logistics disruptions caused by COVID-19 lockdowns, we are keenly aware of the importance of identifying procurement risks early and preparing backup plans. Of paramount importance in the supply chain is “continuity” to ensure that what was done yesterday can be reliably done today and tomorrow. To achieve this, we must look to the future and take steps every day to ensure that no matter what happens, we can continue our business activities. We will continue to work hard to build resilient production and supply systems and to develop mechanisms to respond quickly to any changes.

Envisioning the future and working on what needs to be done now

The Hiratsuka factory of
Daiichi Sankyo Propharma Co., Ltd.

In addition to the “QCD + R” mentioned above, I think the key words “Green and DX)” are also essential when thinking about the future of our plants.

As an example, the DS Group is working with all its plants to promote the use of natural lighting and introduce solar power generation to reduce the environmental impact of our operations. Also, in terms of sustainability, we are committed to creating a workplace where everyone feels comfortable, regardless of racial background, ethical background, or gender. Just as barrier-free facilities are now commonplace, we want to contribute to solving problems through our operations with an eye to the society of 10 or 20 years from now.

In the 5-year Business Plan, goals are set for the years 2025 and 2030. Looking at the numbers alone, these dates may seem far away, but I think they are actually very close. As the saying goes, “Imagination breeds creativity,” and I believe that by imagining the future, drawing a roadmap, and acting quickly, we can create something of value for people around the world. Looking ahead to the next 10 to 20 years, I am confident we will continue to make steady progress every day.

Learn more about Environmental Management

Learn more about our 5-year Business Plan

Junichi Fukute
Head of Supply Chain Unit at the time of the release
After many years of experience in manufacturing active pharmaceutical ingredients at plants, Mr. Fukute has held his current position since 2019.

*1 Antibody-drug conjugate: A medication formed by connecting an antibody and drug (small molecule compound) via an appropriate linker. The antibody connects with the targeted protein that causes cancer to deliver the drug directly to the cancer cells, thereby maximizing the anticancer effect while minimizing the body’s systemic exposure to the drug.

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