DSM Anti-Infectives: Innovation and Supply Chains, a Synthetic Combination?

This case discusses the vision for the supply chain developments of DAI(DSM Anti-Infectives), a business group under the business cluster Parma. Parma was one of the four business clusters of DSM (Nutrition, Parma, Performance Materials and Industrial Chemicals), a listed company in the Euro next stock exchange in Amsterdam. As DAI’s financial performance was not satisfactory in 2006, this triggered DSM to let DAI follow a“carve-out” strategy since mid-2007. The case introduces the innovation of production processes and materials, relevant applications in developed economies and emerging economies, and the effect of innovations in terms of cost reduction, quality improvements and reduced environmental impact. DAI’s partnering with NCPC, its exploration of enzymatic process development, and its supply chain optimization approach are also discussed. The case also describes the main market of DAI’s products, the market trends of the relevant segments, and a comparison of the Penicillin Product Map and DAI Product Map. The composition of DAI’s supply chain management team, its responsibilities, the complex and dynamic web of product flows and the key objectives of the team are all illustrated.Finally, the enzymatic processes and their influences on the product map are also laid out for a discussion of the strategic options of the trading of intermediate products or the setting up of supply chains with dedicated intermediate production.