Within the life sciences industry (particularly in large molecule product portfolio), there are varying schools of thought with respect to internal supply capability vs. externalization for network design. Over the past decade, the model pivoted largely towards externalization. I now see trend back towards internalization, as it was 20 years ago. Are others are viewing similarly? What is your perspective on drivers for this shift (capability, cost, stability/risk, etc...)?

Right now, as a new company, we are redefining the approach for our network strategy, let´s say we are starting from scratch. We don’t have a global structure yet for network analysis or modeling, but typically network design is done internally. We develop and strengthen internal tools and capabilities first– talent is critical for this. It can be challenging to shape the network strategy, frameworks and coordinated efforts are needed, in some cases, business decides to bring in consultants. However, our approach is to develop internal network design teams.  Sometimes, we bring in consultants just to confirm that our analysis is correct. 

Talking about either externalizing or internalizing the supply chain network, what is happening, at least in our sector, is that there´s a clear trend to externalize through 3PLs to grow the operation. Roughly 10% of our warehouse sites are internal sites because they are close to the manufacturing plants, so it makes sense to internalize. Other than that, everything else is external. At least for warehousing, distribution, and transportation capabilities, there is no trend for us to start internalizing capabilities. The same applies for WMS and TMS integrations.

Do you believe a one-fit-solution exist? Does it not depend on the geography, the related services and product maturity?
Does mistakes, new risks or new technology (re)open routes-to-market that were disliked some years ago?