Spyros Pharmaceutics (A): The Booklet Label Decision

Abstract

A packaging supplier for a pharmaceutical firm proposes an innovative cost-saving measure for the next clinical trial: instead of dozens of custom labels for participating countries, the company can create one universal booklet label with a page for each. A senior clinical-supplies manager must weigh the proposal before presenting it to the clinical team. Were the efficiency and cost savings worth the hassle? This fictional case is designed for a first-year operations module on supply chain management. Excerpt UVA-OM-1682 Jan. 27, 2020 Spyros Pharmaceutics (A): The Booklet Label Decision Once again, Milad Milachi, senior clinical supply manager at Spyros Pharmaceutics Inc. (Spyros), reviewed the documents on his desk. It was May 2018, and he had just received a proposal from one of his packaging suppliers for Spyros's latest drug, Blissify. This proposal was unlike any he had seen in the past regarding complexity, operational design, and—consequently—cost. The supplier was proposing an innovative way to label the supplies for the drug. Although the new label would cost $ 4.00 more per label, the supplier promised significant operational and manufacturing savings that would more than make up for the cost. Milachi knew the clinical team would want his recommendation at its next biweekly meeting—which happened to be the following morning. Spyros Pharmaceuticals and the Development of Blissify . . .