Bayer's Supply Network-Centric Approach To Digitalization

A conversation with Chris Grail, Bayer AG

Any company that wants to take advantage of Pharma 4.0 inevitably must start by getting off paper, an undertaking called digitalization.

The trappings of automation and artificial intelligence can only be won when data is moving uninhibited, freely accessible, and meaningfully organized for anyone who needs it.

Chris Grail, Bayer Pharmaceutical's engineering and maintenance excellence lead, is talking about his company’s digitalization efforts ahead of the International Society for Pharmaceutical Engineering’s Pharma 4.0 and Annex 1 Conference December 10-11 in Rome. His Bayer colleague, Marco Cesana, will speak on the topic at the event.

We had some high-level questions about Bayer’s approach to digitalization. Here’s what he told us. Some answers have been edited for clarity.

How is Bayer digitalizing? More specifically, how is Bayer orchestrating and prioritizing its digitalization strategy?

At Bayer, our digitalization journey is a multifaceted endeavor aimed at fostering innovation while enhancing operational efficiency across our organization. A key area of focus is generative AI technologies, which we view as pivotal enablers for a diverse array of AI-driven applications. These technologies not only support streamlining of processes, but they also open up new opportunities for research and development, ultimately leading to improved outcomes for our patients.

Our current digital strategy focuses on a supply network-centric approach. This shift allows us to thoroughly assess both the challenges and strengths inherent in our operations. By concentrating our efforts where they can yield the most significant impact, we acknowledge that not every segment of our network requires uniform levels of digitization. Instead, we tailor our initiatives to meet the unique needs of each area, ensuring that we maximize our resources effectively. 

To build on that a little more, what specific technologies are most important for digital transformation and the pursuit of Pharma 4.0? Can you provide specific examples from Bayer’s experience?

In our pursuit of Pharma 4.0, Bayer’s digital transformation revolves around three primary technology categories: data, connectivity, and analytics.

The data aspect focuses on converting analog processes into digital formats, such as implementing digital documentation and laboratory measurements. This transition makes data readily accessible and paves the way for enhanced efficiency across our operations.

Connectivity is crucial for integrating this data effectively, allowing us to harness its full potential. By ensuring seamless data flow between systems, we can make informed decisions that drive operational excellence.

Analytics plays a vital role as well, primarily through our cloud infrastructure and advanced analytical tools that facilitate the extraction of actionable insights. For instance, our Product Supply System exemplifies this approach by gathering extensive production data related to line performance and maintenance needs. This wealth of information not only improves line efficiency, but also supports predictive maintenance, enabling us to proactively address issues before they escalate.

Additionally, we prioritize the automation of processes wherever feasible, including the adoption of robotic technologies. These innovations are integral to our ongoing journey toward a more agile and efficient organization.

How do you measure ROI?

Measuring ROI in our digital initiatives is akin to evaluating any capital investment project. We assess both up-front and ongoing costs against the savings generated over a three-year period considering the utilization rates of the tools involved.

However, it’s essential to recognize that our recent investments have primarily focused on building a robust digital infrastructure that supports various applications. Since this infrastructure is shared across multiple tools and use cases, we distribute its costs rather than attributing them to a single initiative. This approach allows us to accurately reflect the value generated across our digital landscape. This ensures that the value return manifests in improved efficiency, streamlined processes, and increased operational speed that align with our strategic goals. 

How would you coach a young company that wants to get away from paper records and digitalize but has limited resources?

The first step for a young company transitioning away from paper records is to examine existing processes and identify opportunities to eliminate paper usage, rather than just converting documents to digital formats. Automating data transfers to systems like labs or shop floors can reduce manual tasks. For unavoidable paper documentation, explore digital tools that ensure compliance through digital archiving. Focus on high-value areas for early wins to justify further investments in digitalization.

Collaboration is also key — at Bayer we are partnering with smaller, agile companies that have advanced digital capabilities that create value for both partners. Bayer supports these arms-length companies by providing guidance on processes and regulatory requirements, helping to maximize resources and accelerate their digital transformation journey for greater efficiency and innovation and speed to market, thus increasing value for our patients.

How do you manage team adoption when asking for substantial changes to their routines?
To manage team adoption during substantial changes, we focus on some essential principles. First, it is important to engage users early as well as to create communities for feedback. Also essential is the communication of the rationale behind prioritizing tool features, as well as providing robust training and support for every rollout.

Cultivating a culture of digital transformation through leadership commitment and highlighting the long-term benefits of digital transformation on the company and individuals will also facilitate enhanced team acceptance of new routines.

About The Expert:

Chris Grail is the engineering and maintenance excellence lead at Bayer Pharmaceuticals, a critical function serving as a key partner for manufacturing, development, and capex projects. His past experiences include service in the Royal Navy, consumer goods companies, and other roles in the pharmaceutical industry. He’s a chartered engineer, a fellow of the Institute of Measurement and Control, and a member of the International Society for Pharmaceutical Engineering. He received his M.Sc. from the University of Reading.