Key Manufacturing Levers to Mitigate against Supply Chain Risk Maria Crowe Former President of Manufacturing Operations Eli Lilly and Company Purdue University February 24th, 2018

Supply Chain Demand Fulfillment Agenda Background Information Eli Lilly and Company Sets the Stage for Affordable Manufacturing Product Design Creates the Production Capability Supply Chain Design Satisfies the Customer Supply Chain Demand Fulfillment

Eli Lilly and Company

Process Design Sets the Stage for Affordable Manufacturing Robust & Stable Process is critical Dose per Day of Therapy (D.O.T) # of Process Steps # of Ingredients

Creates the Production Capability Supply Chain Design Procure Single Source V Multiple Source Scalability Transportation & related costs Manufacture Specialization API / Pharma Manuf Common Equipment Platforms Proximity to market & other sites Location Adv Sourcing, Capabilities, Costs Make V Buy (CMO) Creates the Production Capability

Supply Chain Demand Fulfillment Supply Reliability needed to Make a Sale (Key Variables) Robust Forecasting Capability Demand & Demand Variability Supply Chain Reliability Supply Chain Lead Time Production Capacity Criticality of Product To Patient To Company Profitability Cost of Holding Inventory Inventory Life Satisfies the Customer

Closing Thoughts Manufacturing can utilize 3 Key Levers to Mitigate against Supply Chain Risk Key Levers Process Design sets the stage for Affordable Manufacturing Supply Chain Design creates the Production Capability Supply Chain Demand Fulfillment Satisfies the Customer