Life Sciences

The pharmaceutical industry is evolving rapidly as a result of changes within the healthcare system and the entry of new players into the market

While the sector is enjoying strong economic growth, changes within the healthcare system, increased competition from emerging countries, and the entry of new players into the market are all altering the current market balance. Argon Consulting assists players in the sector to carry out the necessary transformations to tackle these new challenges, from the initial assessment through to operational implementation.


Historically very profitable, this sector is changing at an accelerated pace as it faces:

  • The imbalance of the health insurance systems across all European countries due to ageing populations, which has resulted in:
    • Economic pressure applied by state authorities to medications (promotion of generic medicinal products, reduction in the number of medicines for which patients can claim costs, state or NGO calls for tender, etc.) and price/service competition on OTC products more
  • The rationalization of public healthcare systems (overhaul of hospital networks, reorganization, efforts to boost productivity, etc.)
  • The deregulation, at varying speeds, of drug distribution networks in certain countries, which may increase the influence of drugstore customers on their suppliers
  • The pursuit of economies of scale with which to cover rising R&D costs by means of industrial or distribution synergies, through buyouts, mergers, and stockholdings
  • The globalization of production capacity and the development of emerging countries as both trading and manufacturing zones
  • The generalization of precautionary principles amongst the general public opinion, leading to a destabilization of established markets in the event of pharmacovigilance issues


In response to these developments, the following key operational levers can be used to improve customer service, to better adapt to market evolutions, and to control the economic equation by:

  • Defining and promoting differentiating service offerings to supplied customers
  • Tailoring the distribution strategy to each geographical zone
  • Improving demand control and adapting the collaborative model between factories and markets more
  • Controlling the long-, medium-, and short-term balance between demand, capacity, and stocks
  • Supporting new industrial strategies (decoupling points, delayed differentiation, etc.) by adapting the control of flows and stocks
  • Optimizing the stock policy
  • Shortening production and release cycle times and optimizing campaign sizes


How can Argon Consulting help you?

We assist players in the sector to carry out the transformations necessary to tackle these new challenges, from the initial assessment of the opportunities through to implementing the full range of operational levers, as follows:

  • Supply chain strategy and governance:
    • Optimization of distribution patterns (choice of partner and network for specific service offerings and associated costs)
    • Optimization of the industrial model (decoupling points, product/site assignments, etc.)
    • Supply chain governance model
  • Supply chain planning processes and information systems:
    • Forecasting and planning of demand and distribution
    • S&OP, MPS, and scheduling
  • Lean management initiatives to improve production performance, shorten cycle times, and to make capacity more flexible
  • Cross-functional projects to reduce stocks, cycles, and costs
  • Optimization of logistics:masterplan, warehousing, and transport networks

Argon Consulting’s clients include:

Galderma, Générale de Santé, HRA Pharma, Merck, Pierre Fabre, Sanofi, Servier

Case Studies

Deployment of Supply Chain processes, teams and information system
Comprehensive restructuring of R&D processes – skills transfer
Defining a makeorbuy and sourcing strategy for all clinical development processes
Drivers for reducing inventory and increasing flexibility in the pharmaceutical industry