GlaxoSmithKline has a portfolio of over 1,000 different products, ranging from tablets and toothpaste to inhalers and complex capsules, in over 32,000 different pack sizes and presentations.

Manufacture of medicines begins with the development of a therapeutic active ingredient in a selected formulation. Global Manufacture & Supply (GMS) develops manufacturing processes for full scale volume production of active compounds at ‘primary’ manufacturing sites. Converting active compounds into a finished dosage formulation is the responsibility of the ‘secondary’ manufacturing sites.

Following the merger between Glaxo Wellcome and SmithKline Beecham in December 2000, GMS operates as a single global network of 108 sites in 41 countries employing over 39,000 people. Each year GMS produces around 5,900 tonnes of bulk actives and over 3.8 billion packs, which are packaged and delivered for sale in 138 countries. It also manages approximately 1,800 new product launches a year.

GMS is focused on delivering:

•  a secure source of supply of high quality products
•  compliance with regulatory requirements and customer expectations
•  best in class cost
•  leading edge practices and performance – at sites, in procurement and in other global functions.

Organisation
GMS operations are structured into Supply Chains and Regions.

Actives supply. The active ingredients of non-antibiotic products are produced at ten sites across the network, located in Australia, India, Ireland, Singapore, the UK and the USA. Approximately 3,750 staff are employed in manufacturing and supplying these active ingredients to the secondary pharmaceutical sites.

Antibiotics supply. This is a global organisation with 18 sites, spread across 11 countries. In total, around 6,200 staff are employed across all of these sites, where a broad range of antibiotic products are manufactured and packaged.

European region. There are 15 sites in the European region spread across nine countries employing around 9,250 people in total. Between them the European sites manufacture nearly all of the major pharmaceutical products marketed by GlaxoSmithKline in a wide variety of finished dosage forms.

North America region. There are three pharmaceutical sites in the North America region located in Puerto Rico, Canada and the USA. These sites employ around 1,750 staff.

International region. The International region comprises 38 manufacturing sites in 20 countries spread across five distinct areas and employs around 10,600 people. There are five sites in Middle East/Africa, 19 sites spread across the Asia Pacific area, five sites in China and two in Japan. In Latin America there are seven sites.

Consumer Healthcare supply. There are 24 Consumer Healthcare manufacturing sites spread across 16 countries, employing around 7,000 staff. The Consumer Healthcare supply chain is diverse and includes the manufacturing and supply of OTC medicines, oral care, nutritional healthcare and smoking cessation products.

Strategic Master Plan
The Strategic Master Plan (SMP) is a long-term programme of integrated changes to enhance competitiveness and productivity in Glaxo Wellcome manufacturing sites announced in October 1999. It is based around three interdependent initiatives – Manufacturing Excellence, Network Rationalisation and Procurement Excellence, applied across the whole network of manufacturing and supply locations.

The programme includes using LeanSigma tools and techniques to challenge current ways of working. As well as the forecast financial benefits this leads to improvements in areas such as reduced cycle time, increased productivity and improved delivery performance. SMP implementation is proceeding as planned for completion in 2003.

Global Supply Initiative
Global Supply Initiative (GSI) is a four year programme, announced in February 1999, to restructure the SmithKline Beecham supply network to align manufacturing strategy with business needs through network rationalisation and purchasing initiatives. Implementation is at an advanced stage, with 65 per cent of benefits delivered. Sites at Plelan, France; Camacari, Brazil; Toledo, Spain and Baranzate, Italy were sold during 2000.

GlaxoSmithKline integration
The merger of Glaxo Wellcome and SmithKline Beecham manufacturing and supply organisations presents synergy opportunities in addition to the significant savings already forecast from the Glaxo Wellcome SMP and SmithKline Beecham GSI programmes. SMP and GSI implementation programmes will be aligned with integration related changes to deliver these synergies while maintaining security of supply.

Vaccines
Vaccine production is located principally at Rixensart, Belgium and at Dresden, Germany.

External suppliers
Procurement is a global function supporting all functions and areas of the GlaxoSmithKline business. Manufacturing is one of the largest areas with over £2 billion spend with external suppliers every year, including the purchase of active ingredients, chemical intermediates, part finished and finished products. GMS has taken appropriate steps to protect its supply chains from any disruption resulting from interrupted external supply through appropriate stock holding, contracting and alternative registered suppliers.

Block Drug
The acquisition of Block Drug Company Inc in January 2001 has added seven further sites and over 1,450 employees to GMS, within the Consumer Healthcare Supply chain.