In this episode of SCW for Pharma, host Evren Ozkaya welcomes Sanjay Choubey, Vice President of Digital and Process Excellence (North America) at Dr. Reddy's Laboratories, to discuss the evolving landscape of digital transformation in pharmaceutical supply chains.
The conversation begins with an industry reality check: the U.S. pharma market is the largest globally, surpassing the next nine largest markets combined. Given this scale, Sanjay highlights the critical areas where digitalization and process improvements can drive efficiency, from manufacturing to delivery and warehousing. He emphasizes the power of real-time for supply chain visibility, unlocking numerous use cases for optimization.
Sanjay stresses that digital transformation is not just about technology—It’s about the people within organizations. Change management remains one of the toughest challenges, as resistance often leads companies to revert to outdated manual processes. He shares insights on how real leaders navigate these obstacles, drawing an analogy between failures in transformation and losing a battle versus winning the war. The key to success? A leadership mindset that separates noise from real compliance issues, builds trust, and alleviates real concerns.
The discussion also covers the accelerating shift from on-premise ERP to cloud solutions, driven in part by an impending support deadline set by SAP (for 2030). Sanjay explains that with data requirements growing exponentially, cloud-based platforms offer a more scalable and cost-effective alternative to traditional data centers. He warns that many companies fall into the “sunk cost fallacy,” believing their past investments in on-premise infrastructure justify maintaining underperforming systems. Meanwhile, competitors leveraging cloud systems are gaining agility, reducing data silos, and optimizing operations with cutting-edge technologies. Sanjay advises pharma leaders to move early, work out implementation challenges, and future-proof their organizations with modern solutions.
Later, Evren and Sanjay tackle the ROI question: How should pharma leaders prioritize investments? Sanjay argues that while ERP upgrades are essential, efficiency gains from manufacturing digitalization are equally valuable. He highlights Dr. Reddy’s successful factory transformation in India, showcasing how digital factories can significantly improve processes. They also discuss how addressing productivity losses on the shop floor can lead to measurable and significant improvements in Overall Equipment Effectiveness (OEE) and throughput.
The episode concludes with a strategic perspective—should companies upgrade their ERP first, digitize manufacturing first, or do both simultaneously? Sanjay outlines key considerations, emphasizing that handling both transformations at once reduces change management complexity by preparing the factory in a single transition. However, he acknowledges that financial resources, business pain points, and other organizational challenges will influence the decision. When feasible, tackling both simultaneously is the most effective approach for maximizing efficiency and long-term success.