 Hi, everyone. Welcome to our final life event of the SEX Fall Series. Thank you so much for joining us today. I'm Miguel Rodríguez García, Co-lead for SEX Supply Chain Fundamentals, part of the MITX MicroMasters Program Supply Chain Management. So, first, we want to thank you for joining us today. And since it's Cyber Monday, we are the largest online program supply chain management. There is no better way to celebrate that by bringing you something special because edX, the platform that we use for all of our courses, is actually celebrating Cyber Monday by giving a special discount for all the courses. It's a 20% discount, and the only thing you need to do is to include the code Cyber 2022 when verifying for any of the courses. So we're actually going to be posting the code here in the chat. So if one of your goals for next year is to keep on learning about supply chain or even to go for the whole supply chain MicroMasters Program that MIT has in the platform, we encourage you to purchase your courses now, because the discount is only going to be available today or tomorrow. And yeah, just take advantage of this 20% special discount that we're giving away. So, just moving forward into the life event. And both you guys saw how COVID-19 brought to light the importance of supply chains in healthcare, and also in the pharma industry, mainly in the last couple of years, because of the pandemic. And today what we're going to do is learn how this complex and global supply chains are managed. So as you can see, I'm not alone here. Once again, I'm really proud and happy to be co-hosting the life event with my colleague Paolo Sosa Jr. Of course, lead for SC3X Supply Chain Dynamics. So how are you Paolo? Can you tell us a little bit more about today's event? Hey Miguel, thank you. Hi, hi everyone. Thanks for joining us today. I hope everyone is excited to learn and discuss more about global supply planning in the healthcare industry. So today we are honored to have Jonathan Camargo as our guest speaker. Jonathan is the director of global product supply at the Merck Group. He has over 10 years experience in supply chain and operations in the pharma and e-commerce industry. And he holds a bachelor degree of science in electronics, engineering, also a bachelor degree in mathematics, and also a master's degree in supply chain management from MIT. Jonathan is also a MicroMasters alum, which means he succeeded in all the courses from the MITx supply chain management MicroMasters program. Hi Jonathan, welcome back to the MicroMasters program. Hi Paolo, hi Miguel, hi everyone. First I must say it's a pleasure being with you all today. Thanks you once again for inviting me to this life event. We are so happy to have you here Jonathan. And before starting your presentation, would you want to briefly share your professional background with the audience so everyone can learn a bit more about you? I think you could provide a very nice overview of my background, but probably we'll talk about a bit more about my passion. So I'm someone passionate about process improvement. I will say I'm also in love with the healthcare industry, so it's great that you invited me to this event. I hope I can transmit that passion as well. You want to know more about the industry, you want to know more about me, you want to create a connection with industry, feel free to contact me on LinkedIn. So Paolo described my background, so I'm an engineer, I'm also a mathematician, my experience mainly in the healthcare industry and e-commerce. In the past I worked for Novartis, Amazon, I'm currently working for Merck, and I'm responsible for a team that is let's say accountable for the global supply of some biotech products. Nice, nice. Yeah, thank you so much for being here Jonathan. I think like the topic is going to be super interesting and I mean it's like a state of the art. Everybody has been talking about in the last couple of years so we are really thankful that you're joining us today. So today we are going to follow the next agenda. First, our guest speaker Jonathan Camargo will give us a presentation, it lasts around 25 minutes. And during the presentation we actually wanted to interact as much as you can and like everyone in the audience, so we are going to be launching several polls. Finally, Jonathan will be answering also some of your questions from many of you guys. So we really encourage you to participate. You can use the Q&A function that Zoom has available. So you can actually start asking questions throughout the presentation. You don't have to wait till the end because Paolo and I will probably select some of those questions and we'll be asking them to Jonathan. So without hesitation, it's an honor to have you here with us Jonathan. Back to you. The screen is all yours. You can share it whenever you can. Okay. Do you see my screen again? Yes. Okay, let's get started. So before we jump into the presentation, I will try to describe how we build it. I will try to elaborate it in three chapters. One, I will first introduce you some of the, let's say key characteristics of the healthcare industry, what are some of the trends, what are some of the watch-outs, and what makes the industry special, right? What characterizes really this industry? Second, I will move more into global supply planning. So what is the role, for example, of a global supply planner within this industry? What are some of the key constraints that need to be considered for supply planning? And then third, I will give you some, let's say, concrete examples of the decisions that typically are taken by the global supply planner. So what is really the job about? How it looks like in the daily life? What are the type of interactions a global supply planner has? So let's get started with the first piece of the presentation, which is about the healthcare industry in general. So we just create this, let's say, framework before going into details of global supply planning. So let's start with a quick overview. Healthcare as an industry, I would say it's a big industry, and within the industry there are many sectors. I've seen that some people sometime have confusion on the different sectors. I tried to put in the slide the four key ones, the main ones, there are also other sectors within the healthcare industry. But the four key ones I would say are pharmaceuticals, biotechnology, medical devices, and data health solutions. I have noticed, and actually I was in the same group. I typically was created a confusion between pharmaceuticals and biotechnology. Like what is the difference between that? But based on my experience, I can simply, let's say summarize it in quite a very basic way. So we say pharmaceutical is mainly related to medicines that have as a basis a chemical principle. So typically it's a chemical formula that you can somehow easily replicate. When it comes to biotechnology, the basis is to live in organics. So this is how you build your medicine. It's a bit more difficult. So this is more to say already biotechnology as a sector is a bit more as a specialized one. And it's one which is more difficult to enter. When it comes to medical devices, it's also a big sector actually. But to bring some clarity about it, just think about the type of devices that typically are given to a patient to facilitate a treatment. So it can be a device to track the treatment, if it's working well, if it's performing well, or if there's any particular watch out, the patient needs to be aware. So think about it in that sense. Detail Health Solutions is mainly about, I would say, software solutions also to support treatments to patients. With regards to trends, there's one that is quite specific to this industry. And it's the first one mentioned in the slide, the one related to increasing regulatory and quality requirements. So this is the first message you need to get out of this presentation. This industry is super regulated. So I would say there's no flexibility that you can do something if you are not complying against regulation. It's not that you can try to find a creative idea to overcome regulation. No, forget about that. If you do that, you will be putting your company into trouble, big trouble. So first thing, keep that in mind, regulation. And there's an increasing trend in regulation. If I'm many industry writers, always a higher standard on how to operate. In particular, in the healthcare industry, this higher standard means more restrictive regulation and quality requirements. There's also, I would say, two other trends that are quite common across many industries. Sustainability, the use of machine learning, artificial intelligence. I would say, especially on sustainability is something I'm trying to focus on now, following my experience at MIT and my master's in supply chain management. There's a lot of, I would say, of big focus to make our supply chains more sustainable. But what makes it difficult in this industry? Regulation. So for example, you want to redesign your product to use more, let's say, sustainable materials. Well, that's typically not something you can do. Somehow, typically you need to consult health authorities. Okay, so keep that in mind. Even if you want to make your supply chain more sustainable. Some things you can do, but not everything. So basically keep that in mind. Consulting health authorities is the best recommendation here. So what are the key constraints, let's say, dictating the way this industry operates? The first two, I already shared regulation and quality requirements. With regards to more, let's say, product specific requirements, I would say Chef Life, it's a big one. In certain, let's say, markets, you need to meet Chef Life requirements dictated by health authorities. You want to be able to sell a certain product, right? So it cannot be that, for example, you ship to a certain counter product with predetermined Chef Life. No, in some countries, there's also some rules you need to satisfy with regards to product Chef Life. Then it's characterized by very long lead times. So I gave you the example of the biotech industry. So the biotech industry, the manufacturing of biotech products, it's, I would say, consists of three steps. The drug systems manufacturing, which is the manufacturing of your active product ingredient, transforming it into drug products. A drug product simply is having your active product ingredient into a bio or a seeding and finished product, which is taking those bios and those syringes and packing into a finished box. This is somehow where the key three manufacturing step describing, for example, the process for a biotech product. And I can tell you it takes almost one year. Then to end the time for this process. It's quite a long one. Of course, to overcome that there are different decoupling points in the supply chain at API level, especially under a pro manufacturing. Typically, these are two decoupling points that are used, of course, to overcome these long lead times. And the last point of this industry in terms of constraints, the hard barriers to entry. Regulation is not something easy to meet. Typically, you want to build a manufacturing facility to be able to manufacture, for example, a biotech product. This is something that can really tell you years. I would say three to five years. Okay, just building the plan, validating it and ensuring it fulfill regulatory requirements. Last but not least, if you are in a supply chain function, of course, you are also accountable to ensure that the way you plan to supply compliance against regulation and quality requirements. So it's a must. Every function operating, let's say working in this industry, need to comply against regulation and regulatory and quality requirements. So let's, let's say start with a first question. So I think, Charlie, you can help me with the first one. So what is a common end to a manufacturing lead time for a biotech product? So here we have three possible answers. I guess the answer is quite easy because somehow I already shared what I was speaking, two months, four months or 12 months. I think we are good to go. Let's see. Okay, so 12 months, 82% does the right answer. So just keep that in mind. It's three manufacturing steps, API, drug product, finished product, one year, more or less end to end lead time. So very long lead times also compared to other industries. Okay, let's move forward to the next section of the presentation. Now we'll move from there, let's say healthcare overview into global supply. What it means in this industry. So to try to somehow explain it in a simple way, I just built a very simple supply chain here in this slide. It's not that simple, of course, I put it also like very linear right now to just again just to keep it simple. And I will try to explain where global supply planning is in both. Because in this sector, what supply plan is not just about generating supply plants. It's really about interacting with many functions before building those supply plants. So let's have a look to the simple supply chain. So as usual, everything typically starts with the sourcing of raw materials so you have many surprise globally. And then there are shipping those several materials to manufacturing locations that afterwards are processing those materials and transforming that into API, drug product, finished product. And then shipping that into a distributor. Then from the distributor typically the pro is distributed to wholesalers, and then the demand coming from clinics or pharmacies are fulfilled from those wholesalers. So very simple supply chain, but what I wanted to show is more the involvement of a global supply planning in that supply chain. So first thing, like many industries is this decision with regards to supply planning parameters. Like we said this talk levels to have a wish transportation mode to use for example to ship product from one country to the other. And how volumes are allocated across the supply network under which location and you would like to place a certain supplier. So those are typical decisions that are connected to global supply planning. But here what is very important is that you don't have the flexibility to decide them alone. You need to work with many functions, especially regulatory quality and commercial. Again, you need to ensure that whatever you decide is compliant. Right. If you are in a non-compliant situation this creates significant trouble for the company you're working with. But for example, transportation mode. Typically you can select between airplane, boat or track. Okay, that's a transportation mode, but is the transportation route validated? So this is the type of questions that are common in this industry. Can you simply ship one product from A to B with that track? What you need to also to ensure that your route is validated. You cannot select every single route for that. So now what it means more in details. So I just focused now on MPS master production scale. So you have some supply chain experience already. You will know that typically it's about generating supply plants. Quantity, what needs to be produced, when, where. Well, what are some of the key inputs to generate that in the healthcare industry? So demand as usual, sales forecast, customer orders. But also here I have a key point which is shelf life requirements for sales. If you want to operate in certain countries, again it could be that health authorities might ask you. Here you have a customer order, but you need to guarantee a certain product shelf life. For example, once the product enters the country, you need to ensure 18 months remaining shelf life. So this is a must. If for example you want to operate and sell your product in that certain country. What are other key inputs are actually common in supply chains or like lead times available capacity. Frozen and planning horizon. What is the status of your inventory? What are the schedule orders? So all that is let's say typical information you find that are required to to run your supply chain. Then what it when it comes to more specific, I will say constraints on this industry. I will take the example of manufacturing sites registration status. For example, you can have three manufacturing sites, manufacturing facilities, all capable of producing vials. But then you cannot simply decide to allocate product volume to a certain location unless that location has been registered towards health authorities. So the line, your manufacturing line can be ready, capable to run as of tomorrow. But if this manufacturing line is not registered against health authorities, you cannot use it. So keep that in mind. All those constraints is I always tend to think about it. It's like supply chain, but in parallel you have all the regulation. So you always need to do the the mirror reading of what you decide, what it means in terms of regulation. So what is a typical output or global supply planning? So which a product that product ABC that needs to be produced by week 12, 100 units in manufacturing line for which is located in Italy. And what is different is which process. And also everything related to regulation, you can have the manufacturing line for in this example, registered to health authorities. But it doesn't mean you can actually use it. Sometimes, even if a manufacturing line is registered, you also need to decide which process will be used to manufacture that process and then in that line. Processes as such are subject to many changes and those changes also need to be approved by health authorities. Okay, so to manufacture in bio, you might have three processes available, but you also need to check if process wise, those are registered. Otherwise you cannot apply them. It's a bit tricky in that sense. And I will say this is the main watch outs and somehow where the complexity lies in this industry. Now I suggest to go to the to the second question. So I will read it. So let's assume you have a line called XYZ that can manufacture a lot sizes of 100,000 bios. But this line, however, this line is registered for all countries, right, so regulatory wise, this manufacturing line has been registered to all countries. Right, so you have the approval from health authorities to use this manufacturing line. But it has been registered with a manufacturing log size maximum of 80,000 bios. Remember the line is capable of producing 100,000, but it was registered against health authorities with 80,000 bios maximum. Then what is the consequence if you produce a lot size of 90,000. So option a 90,000 will be written off. Option B, actually you will use 80,000 out of those 90,000 produce and the 10 other 1000 remaining will be written off. So option three, you will be able to use the 90,000 bios that were produced while the audience is answering to the Paul. I just want to remind everyone that if you have a question, you can share with us by using the Q&A feature. At the end of the session Jonathan will be addressing to some of the questions that we get we already have some questions here but if you did not share your share yours yet, you can do it right now. Let's see the answers. So 62% reply 80,000 units will be used and 10,000 units will be written off. So actually that's our wrong answer. The correct answer is option a 90,000 will be written off. This is how why this industry so constrained in that sense. Remember regulation is your top priority and you need to comply against that. If you register a manufacturing line with a maximum loss side of 80,000 bios, you cannot produce 85 or 90. No, it's not a proof. It's not registered to forget about it you will scrap it. And it's not that you kind of split your blood. No. The your maximum outside is 80,000. This is the maximum you can produce. Now let's move to the third chapter of this presentation which is about decision making. Mainly what are the key, let's say trade offs. A glass supply planner needs to play with in the end of daily job. Third three, I would say indicators that are typically part of the objectives of someone working in global supply planning. So first service level. Which is mainly referring to product availability being in stock. Second indicator it's about cost. So how do you supply your product with which cost. And inventory. So how much inventory you are holding throughout the supply chain to maintain a certain service level for example. I must say, as I shared it in the beginning of the presentation now there's, I would say very interesting trend on sustainability. And now I see that the carbon footprint of a product is also now becoming part of the decision making process. So sometimes not just about taking a decision thinking about service level, but it could be also taking about the decision thinking about service level but also what is the related carbon footprint of that decision. So it's a very, I would say important indicator that soon will be part of this triangle. I don't know how, if it will be in the center or how but it will be part of the decision making process. One thing also about this industry. Between the three indicators, service level is the top priority. There are many sectors, as I mentioned, pharmaceuticals, biotechnology, medical devices, etc. But service level is the most important indicator across the different sectors. You always need to think about who's the end customer and in industry it's a patient. Or an animal as well. It could be depending on which sector you're operating. But typically it's a patient. So one of the things you would like to avoid is of being a stock out and having to stop a treatment for a patient. So that's very important. So service first, that's the priority. Also because in certain countries, for certain medicines, if you go with stock out, you have to pay penalties to health authorities. So pharmaceutical companies, biotechnology companies, in certain countries you need to guarantee that product is always available. So what are some of the trade-offs or some of the decisions that are taken? In the first example, what if you decide to produce just small quantities enough to meet the market needs without considering production efficiencies? So in this case, for sure you will have a very low inventory. So you're producing just small quantities, so your cycle stock will be low. Your maintenance service level because you're meeting what the market needs, so you're supplying what the market needs, so no reason service. But the issue here is cost. If you produce a small quantities, you will be, let's say, generating costs inefficiencies for the manufacturing sites. Right, you will be able to absorb, let's say, you will not be able to properly absorb some of the fixed costs of running manufacturing lines, which typically I can tell you are quite high. So this is some of the trade-offs, typically a gloss but I need to think about when deciding which quantities to produce. Second example is on transportation mode. What if you decide to see the transportation mode from earth to sea? Why? So in this case, and while keeping service level, let's say stable, some services maintained costs normally will go down because if you have enough volume, are you able to feel, let's say, ship containers normally will cost less than shipping the same amount by air. But on the other hand, your inventory will go high. Because whenever you ship by sea, of course, as you can imagine compared to air, your transportation lead damage is much higher. So your inventory will normally go high. A third example, it's about reducing safety stocks without considering demand and supply variability. Okay, you reduce your inventory, but if you have high demand variability and supply variability, you will hurt your service. But soon you will be facing a stock out and this will trigger costs. Either penalties to have authorities I was mentioning before, or because simply to compensate the fact that you're going to stock out, you will be activating some, let's say, express shipments. So there's always a trade-off, of course, on those decisions. Now, I see us to move to the next slide and I will start it, I will start it with a question. So in this example, assume you have a factor, there's a factory in France where you are packing the finished product. And you need to decide the transportation mode to ship that product from France to China. So there are three options. You can ship by air, you can ship by sea, or you can ship by rail. In this slide, I'm initially showing only part of the information. What is the related costs per transportation mode? This cost includes the transportation cost, so how much you will pay your transporter to effectively move this inventory from France to China, plus also the inventory holding cost. So the cost you will pay to carry that inventory while the product is in transit. So if you do that calculation, in this example, I came with these three numbers. In the case of air, it costs 2.4 million euros. In the case of sea, it costs 0.8. In the case of rail, it costs 1.2 million euros. So my question is, and I think we can now raise it in the group. If you need to decide the transportation mode to ship this inventory from France to China, but you want to optimize your inventory. Remember, there are three indicators. Service, cost, and inventory. Here the question is about optimizing inventory. Which option would you choose? Air, sea, or rail? Okay, so let's have a look to the results. So to optimize inventory, 52% of the attendees reply, air. Air is the correct answer. So you want to optimize inventory. Here you will go with the transportation mode that have the lowest lead time. So normally shipping by air has a lower lead time. France to Spain could be a couple of days. If you ship by sea from France to China, it can easily take for a pharmaceutical or biotech product 45 days. And if you ship by rail, it's more or less one month. So in this case, definitely you want to optimize inventory. Shipping by air will be the one that's generating the lowest inventory impact in this case. So this is the inventory. And by the way, this is a real example. So this is the inventory value related to each transportation mode in this example. Air, as I mentioned, more or less a couple of dates. So the inventory you will be holding and that situation will be more or less 0.3 million euros. You ship by sea is more or less 4.5 million euros. And you ship by rail around 3 million euros. So you want to optimize inventory. Definitely air is the best option, even though is the one that costs the most. But the question was optimize inventory. And then here I added a third column, which is CO2 emissions. So as I mentioned now, this is getting a lot of attention in the industry as well. And some of the decisions are as well starting to incorporate the CO2 emissions impact. In this case, shipping by air is probably the less environmental friendly option. It generates 3.5 tons. Well, see the one generating the less, let's say amount of emissions. So here you can see it's a tricky question. What would you choose? So typically these are the type of decisions a supply planner needs to take. And I will say the decision is also somehow driven by the strategy the company wants to follow. Okay, so this was my last slide. So thank you everyone. I hope that you find it useful. For the ones that are attending SCX course, I think you have noticed that typical at the end of each presentation, there are always docs. So this is what the reason I decided to put a cut at the end. So thank you. Now I'm open to questions. Thank you. Thank you. Awesome. Thank you so much Jonathan for such an insightful presentation. It is definitely a really interesting topic during the last three years, the importance of healthcare global supply has become crystal clear to the world right considering vaccines production and distribution. Jonathan you you highlighted to us that supply chain professionals need to be knowledgeable on regulations. And it's not only about calculating inventory levels optimizing distribution network or selecting the best transportation mode. And this is also essential to understand and comply with regulations related to the supply chain because at the end, they will somehow impact your inventory levels your network design etc. And in SC 3x supply chain dynamics, which is one of the courses of the MIT X supply chain management micro masters program learners are studying this right now actually they're preparing preparing for their final exam next week. So I'm thinking about the impact that regulations have on the supply chain. So, before jumping into the audience questions I'd like to make to ask something to you. Have you ever faced a situation in your professional career on which there was a disruptive regulation change that suddenly impacted your supply chain. And if yes, how did you handle that. I would say, commonly, there are not disruptive regulation, right because health authorities, proactively informed companies about it. And by practically mean minimum two years in advance. But companies have enough time to find a solution to let's say modify their processes, or implement new processes to be able to comply against those, let's say new regulatory requirements. I would say the challenge here is, would you don't properly manage that. Also, this is where the disruption comes. For example, health authorities informed you two years in advance by 2024. You cannot use any more animals for drug testing as an example. If you sleep and you do anything, you will have a disruption. Because also, as I mentioned, there are very, let's say, the lead times to change your processes are quite long. So in this case, for example, by using animals for drug testing, this is something you need to tackle immediately somehow. You need to modify your process, think about how you will modify it because also, let's say, changing it is not something straightforward. Typically, when you do a process modification, you also need to validate the new process. By validate, I mean somehow qualify the new process. So do some manufacturing runs, gather some data so that you can process authorities. With this process, I will be able to comply against the regulation. And even when you're able to do all that is still you need to formalize it with what is called a submission package. So you prepare all your documentation, you provide all the data to health authorities. And then after you submit all that documentation, there's also a waiting time. In some regions, it's four months. In other regions, it's even two years that you provide all your data to health authorities. And so you need to wait two years to get their answer if they approve what you submitted or not. So this is probably what I see mainly the risk. If you are not proactively manage those changes in regulation, you will have disruption afterwards. Well, that's really, really interesting, Jonathan. Thank you for sharing. I think now we can go to some of the questions that our learners and any other people from the audience have. I think so, Jonathan, I think you can stop sharing the screen now so everybody can actually see us when we like answer to like the questions if that's okay with you guys. Yeah, that's I think that's perfect. So, I'm going to read like one question by Alex Bay. The person is asking, like, what does validate shipping routes or shipping lane mean, and I'm going to actually follow up on that because, like, I also kind of like, I don't know in my mind, try to imagine how this validation process happened, and it's actually like really interesting to me to think like, how often does it happen for example how often does it get updated like oh, if you want to validate a road, because you want to go from Madrid to New York, from LA to New York, like who do you have to reach out to to actually be able to do it because I guess I mean this kind of regulation crosses borders and you have many different countries like mediating there so like how this works in the industry. So it's a world about routing validation. I will I will take an example to try to explain it. Let's assume this example I was sharing before about finished product manufacturing in France and you want to ship it to China. Let's assume the only validator route you have is shipped by airplane and you want to validate a new road you want to ship it now by train. Okay, so how do you do that so typically you go to your quality function as them what needs to be done to validate this road and they will tell you, okay, you need to produce 300,000 bios so that's our requirement in terms of quantity. So let's put it in the train. The road that we would like to follow is France to Germany, Germany to Ukraine, Ukraine to China. Let's assume that. And to be able to guarantee that this route is validated. Typically, what will be done is that they will be placing some loggers to monitor temperature inside the train because what you need somehow to demonstrate is that the fact that you're using a rail to a train to transport your product is not damaging the safety or the efficacy of your product. So you collect data and you can and you demonstrate the productivity or safety is not changed. You're able to demonstrate that with data. This is how you validate your route. Here I give a bit of extreme case when it comes to track transportation. It's much more easy than that. So by that I mean that you validate a road between France and let's say Bulgaria. That data you can also let's say leverage to demonstrate to have authority that shipping from France to Spain is the same. Thank you. You're on mute Miguel. Oh, yeah, sorry. Yeah, thank you Jonathan for clarifying that I think it's really interesting because we don't see this kind of validation. I guess many industries so thank you for sharing. Paulo, do you want to like select another question from the audience. Yeah, yeah, we have another question here. It's an it's really interesting. So, like, it's from DK and it says thank you for the webinar session my question to Jonathan is if he can share his experience of supply chain management micrometers program. What worked for you Jonathan and what did not work. Any suggestions for the current students. So I guess this person wants to know how the program has helped you in your professional career. I would say there are two, two things that I think have shaped a bit my profile in the last years and my focus areas. So first thing, when I entered this industry. So I learned about all what I, what I share here, and I was always afraid of regulation. First service level to patients first. And it was, I'll say I found difficult this to optimize the supply chain. Because I always need I am always so constrained by regulation, but I think where the micro masters help me was to see problems in a different way. I mean you can really actively contribute to make your supply chain more efficient. For example, there's another trend in this industry that I did not mention, but now there's a lot of pressure on costs and profitability. Right. And there are certain decisions that are not directly related to regulation. For example, you can decide with a revised version of the economic order quantity model to better plan. The volumes you're allocating across the manufacturing facilities. Right. So typically manufacturing line you have a minimum and a maximum but side that is, let's say somehow validated and register, but within this range, you can play. And this is where I will say the knowledge I get from the, from the micro master help me, because by building, let's say simple models is still compliant against regulation. And within that range, I was able to find solutions to better optimize cost, for example. So I think those models, those, let's say, a structures ways of thinking differently about policies would help me. The second thing, more directly learning I have from from the from the masters directly, not the micro master, but the masters on sustainability. This is an area where there's a strong focus. But I will say few people know what to do exactly. So there's a good willingness to contribute. But people don't know how to. And in this industry with all this constraints, it's even a bit more difficult. So I think also from there I got some keen side that I'm today applying to my into my job. So I remember the triangle that I presented service costs inventory. I'm not working on finding ways incorporate the carbon footprint into the decision making process of the triangle. Awesome, awesome, awesome. Yeah, I think also now in the micro masters sustainability is has been included actually not not only in the main program the residential program here at MIT. But actually there is also a course that is the our center center for transportation logistics is launching and on ethics and it's actually focusing supply chain sustainability. So if anyone wants to check it out that we also have colleagues working on that too. So of course that's going to be like the future of everything not just to play team but we need to be sustainable and keep on working that direction. So we still have a bunch of questions from the audience and we we don't have much time left but Jonathan you're okay me maybe we can like as you last question. If you allow me actually I'm going to ask to really show once so if you can answer them and then we can finish the event because we have a lot and they're really interesting all of them, we are really sorry that we cannot read all your questions guys but we are constrained. So the first one is from Amy Lee, and she, this person is asking you, like the current state of the pharma industry in terms of like the resource limitations that you might have coming from China or India because then like COVID and also like other kind of supply chain disruptions in Asia happening so if you just want to like mention how you're dealing with that. And the other one is about something really interesting because we have been talking about regulations, a lot. But we don't know how, like how far this goes throughout the supply chain so when you have different suppliers in terms of like tier one, tier two, tier three, usually that's manufacturing language but I guess in the pharma industry you also have really strong supply chains and long supply chains and actually regulations how far they go and how you are constrained by that. So yeah, first resource limitations nowadays and regulations for the supply chain. If you can mention or talk a little bit about that, we really appreciate it. I would say it's a big, big challenge. So it's not only by impacting the healthcare industry of course it's impacting many industries. I would say the key words in the healthcare industry is dual sourcing. So dual sourcing and customer is a patient you want to ensure your price always available. So the way risk mitigation is handled in this industry. I will say it's also doing a very robust way. Because normally you will not have, let's say, one single supply for example based in China. Normally you will have a supplier in China and another one in Italy. So that's where the location on where the suppliers are located. Having a disruption in this industry can put a company in big trouble. So again, sometimes there are commitments against health authorities and it's something you want to avoid, let's say, not fulfilling. When it comes, let's say to the case where you're only single source that you have a supplier in China. Also here in Tesla risk mitigation. Typically, there's a big amount of safety stocks that are carried. Okay, so compared to their industries were probably sometimes there's a lot of pressure on inventory. Let's say keeping inventory low, let's say. In this industry is somehow acceptable. Even to have very low inventory turnover. Okay, as long as you're securing your supply also in those cases. So it will not be strange for a raw material, even to have one year of safety stock. Okay. Well, thank you so much for sharing. Yeah, thank you so much Jonathan I see here that we are right on time. So I want to thank you Jonathan for such such a great discussion about global supply planning in healthcare industry, we still have many questions here unfortunately we are not able to address them right now. But thank you so much Jonathan Jonathan it was great to have you today. Thank you Pablo. Thank you Miguel. Thanks everyone for attending. Yeah, thank you so much. Jonathan, of course, everyone who decided to join us today. It's been a super insightful session. And before we say goodbye, we just want to remind a couple things to everyone because first, we still have several SCX courses open for enrollment for next year. And as we mentioned at the beginning of the presentation, there is we're celebrating Cyber Monday and ethics is giving away 20% discount off so if you want to take advantage of that, that you can use the code cyber 2022. We have it posted on the chat if you want to check it out. So you can use it to register and verify for any further courses. And also this is the final life event of our series. And between SC one X and AC three X so it was a great pleasure to co host the all these events with Paula. We've tried to bring you on a real insights from the industry. We hope that you've learned from all of them. I think we did it. Yes, thank you again so much for, for tuning in. And yeah, finally, we cannot forget our learners because you, I mean you have SC one X final exam and SC three X final exam coming really soon. So best of luck with that. And yeah, thank you again for joining. Thank you Paolo. Thank you Jonathan. Have a great week guys. Goodbye.