Galen Pharmaceutics: 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, 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 fictionalized case is designed for a first-year operations module on supply chain management. Excerpt UVA-OM-1446 Aug. 3, 2011 GALEN PHARMACEUTICS: THE BOOKLET LABEL DECISION Once again, Milad King, senior clinical supplies manager at Galen Pharmaceutics Inc. (Galen), reviewed the documents on his desk. It was May 2011, and he had just received a proposal from one of his packaging suppliers for Galen's latest Phase III clinical trial. This proposal was unlike any he had seen in the past in complexity, operational design, and, consequently, cost. The supplier was proposing an innovative way to label the supplies for the trial. 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. King knew the clinical team would want his recommendation at its next bi-weekly meeting—which happened to be the following morning. Galen Pharmaceuticals and the Development of GP-8210 . . .