In this episode of SCW for Pharma, Evren Ozkaya welcomes Steve Chakrabarty, former Director of Global Business Process and Technology at BD, now a consultant and advisory board member for supply chain activities at Rutgers Business School. With over 15 years at BD in various leadership roles across operations, manufacturing, and digital transformation, Steve brings a wealth of experience to the discussion.

The conversation begins with the often-overlooked cash flow dimension of life sciences supply chains. Steve explains that while many companies maintain a strong P&L focus—driving growth organically through innovation or via mergers and acquisitions—the balance sheet side, especially working capital, is frequently neglected. He stresses that collecting cash quickly, reducing inventory levels, and maintaining healthy internal processes are essential to sustaining operations and funding innovation. Comparing branded and generic pharma models, Steve notes that low margins in generics make holding excess inventory inefficient, while higher-margin branded products can justify larger inventory buffers.

Steve cautions against relying solely on extending payables with suppliers to improve cash flow, calling it an unsustainable long-term strategy. Instead, he advocates benchmarking performance against peers and ensuring operational efficiency. Cash flow, he emphasizes, underpins critical decisions—whether to fund R&D, invest in digital transformation, or scale operations. Many digital transformation initiatives, he adds, can be self-funding, generating immediate cost savings or throughput gains, especially when deployed through cost-as-a-service models.

The discussion then shifts to the intersection of M&A integration and digital transformation. While post-acquisition efforts often prioritize integration over modernization, Steve argues that both can progress in parallel with a smart approach. Harmonizing processes between entities, aligning with market needs, setting clear operational rules, and defining integration timelines are essential for ensuring business value and smooth change management.

Evren and Steve conclude with career advice for young professionals: gain hands-on experience, seek diverse responsibilities, and develop a holistic view of the supply chain to connect the dots across functions.